A while ago I wrote about a promising silver exploration company in production with positive cash flow: Excellon Resources. My conclusion then was
...current valuation is largely supported by the test mining activities alone; therefore, investors are getting a near “free ride” on Excellon’s exploration potential.
The company just issued two noteworthy press releases. The second described recent drilling results from hole ST-50. The grades were nothing to write home about especially in view of the high grade ore Excellon is test-mining now. However, in their chase for the "world class CRD (carbonate replacement deposit)", this is the first time they did not draw blanks. Looking at the property map, ST-50 is located at the southern end of the Saultillera area, and more promising regions probably to lie further south.
I have always been intrigued by the extraordinarily high grade region Excellon is mining now. I'm not a geologist, but if it were a singular occurrence, it would very much go against my understanding of physical nature. With the latest development Excellon should be able to follow the breadcrumbs instead of going on wild goose chases to pursue the CRD so to speak.
Saultillera is sitting on the western edge of Excellon's property. According to the first of the two press releases, Excellon purchased two pieces of land recently, with the location of the second and more expensive purchase not given. Let's hope that management has some foresight and had spent wisely.
Disclosure: I'm long this stock.
Today's release was a pleasant surprise as I was not expecting so quick an answer to my question about the new land purchase. While the high grade holes between the Guadalupe mantos were entirely expected, I was very happy to see the map of the new land holding. It sits to the west and southwest of hole ST-50. Seems that Excellon management had spent wisely.