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Excellon Resources Inc. (TSX:EXN) says it\'s going ahead with construction of a mill at its Platosa lead-zinc property in Mexico but will cut back on its drilling there in 2009 to reduce costs. The Toronto-based company said it\'s exploration budget for the property will be reduced by $4 million in 2009 to $8.4 million, a decline of 32 per cent. Excellon said it was reducing its drilling activity to reduce costs in light of the current market for metals, in which the price for the industrial metals has fallen dramatically in the past year. In the meantime, Excellon said construction on the flotation mill in Mexico\'s Durango State will begin immediately, with commissioning expected to begin during the first quarter of 2009. The mill will have the capacity to process 350 tonnes per day or 120,000 tonnes annually. Excellon shares, which had been halted prior to the announcement, fell two cents to 72 cents following the announcement. Wednesday\'s spot price for lead was US$1,947 per tonne and zinc was 82.95 cents US per pound. A year ago, the spot price for lead was US$3,467 per tonne and zinc was at US$1.41 per pound.
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