Excellon rejects claim of irregularities at Mexico mine

Mon Dec 10, 2012 3:32pm EST
 
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Dec 10 (Reuters) - Silver miner Excellon Resources Inc rejected a non-governmental organization's claim that Mexican regulators have found environmental irregularities at its La Platosa mine, which has seen a number of protests over the last six months.

ProDESC, a non-governmental organization advising a group of communal land owners protesting against Excellon, said a delegation of Mexico's environmental protection agency found irregularities at the mine and the company's unit there could face sanctions.

The company said the agency found no "material or significant issues" at the mine after conducting a review on Nov. 27. "We contacted PROFEPA (the agency) this afternoon and were once again advised that all is in order," Excellon President Brendan Cahill told Reuters.

La Platosa, the company's only producing mine, has been facing protests from the local landowners known as Ejido La Sierrita over demands for a new water treatment plant and other concessions.

The mine, which produced 1.3 million ounces of silver in 2011, faced a two-month-long blockade earlier this year.

Excellon shares fell 2 percent to 52 Canadian cents on Monday afternoon on the Toronto Stock Exchange. The stock has lost 9 percent of its value in the last six months.