Precious metals miners Excellon Resources (TSX, NYSE: EXN) is looking for new assets in Mexico ahead of the planned closure of its Platosa mine, one of the country’s highest grade silver mines.

The Canadian company said in January it planned to wind down operations at Platosa, in operations since mid-2005, in the third quarter of the year due to a series of challenges that have affected the mine.

These include the effect the polar vortex in February last year, entering a steeper area of the deposit, dewatering issues, increased consumables prices and legislative changes, Excellon said at the time.

Unionized workers walked off the job in March after collective bargaining talks broke down, deepening the mine’s challenges.

Relations between the company and the mine, its union and locals have soured at times, with Excellon having to declare force majeure in 2012 due to a sustained illegal blockade. The impact of the strike triggered the exit of the company’s financial officer.

Excellon still plans to conduct exploration around the mine later this year, chief executive officer Brendan Cahill said while delivering first quarter results on Monday.

The company is also actively pursuing acquisition opportunities for producing and development stage assets in Mexico, Cahill noted.

Revenue down

The Toronto-based miner reported a loss of $1.7 million in the first three months of the year, or $0.05 per share, compared to a loss of $2.92 million, or $0.09, in the same quarter of 2021.

Revenue was down 13% to $8.5 million, as production of silver, lead and zinc from La Platosa mine fell 26% to 384,007 silver-equivalent ounces due to the March strike, which kept the operation closed for the last three weeks of the month.

Excellon believes there is significant potential for additional stratabound deposits in the area around La Platosa, which produced two million ounces of silver equivalent last year.