Telson Mining Corporation Campo Morado Update
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 130,184,348
Page 1 of 3
Telson Mining Corporation Campo Morado Update
Vancouver, British Columbia, Sept 5, 2018
Telson Mining Corporation (“Telson” or the “Company”) (TSX- V – TSN, OTC Pink – SOHFF, Frankfurt – TSGN
(formerly SQ82)) provides summary of Q2 2018 financial report.
On Wednesday, August 29, 2018, the Company filed its condensed interim consolidated financial statements
for the three and six months ended June 30, 2018 and 2017 (“Q2 Quarterly Report”). The Q2 Quarterly Report
presented financial information for April, May and June 2018, that included 45 days of pre-production and 45
days of commercial production at the Campo Morado mine. Telson declared commercial production at
Campo Morado effective May 15, 2018 (see news release dated May 23, 2018).
Telson advises that concentrate cash sale value realized from pre-production under International Financial
Reporting Standards (“IFRS”) are not accounted as revenue on the condensed interi m consolidated financial
statement of loss , instead these are capitalized net of production costs and de velopment expenses and
presented as mineral interest and development assets upon reaching commercial production. Accordingly,
Telson capitalized a net profit of approximately C$7.3 million for Campo Morado as mineral interest and
development assets during the pre-production period from Jan 1 to May 15, 2018.
During the last 45 days of the quarter or since the start of commercial production on May 15, 2018 to June 30,
2018, the Company recorded a total amount of C$987,055 as mine operating earnings which is presented on
the Q2 Quarterly Re port. Mining operations at Campo Morado are currently processing at a rate of
approximately 2,000 tonnes per day which management intends to increase to 2,500 in the near future and
increase towards 3,000 by the end of this year.
Antonio Berlanga, CEO states, “ Our outstanding Campo Morado operations team have performed beyon d
expectations and continue to work diligently to improve the operational re sults at Campo Morado. Pre -
production and more recen tly, commercial production , has funded the acquisition of surface and
underground equipment as well as processing plant equipment, all of which are allowing a steady increase in
production rates and corresponding concentrate sales. Telson will continue to invest in Campo Morado to
increase production capacity, mill recoveries and quality of concentrates to maximize the mine’s profitability.”
Telson’s Campo Morado Mine has achieved direct site costs for mining, milling and administration during Q2
of approximately US$56.6, US$51.6 and US$51.8 per tonne respectively for, April, May and June. These current
direct site costs are approximately 36% lower than the estimated direct site costs of US$72.26 per tonne used
for the same categories in Telson’s recently published independent Preliminary Economic Assessment and
approximately 40% lower than the previous operator’s last year of production during 2014.
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 130,184,348
Page 2 of 3
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base
metal mining projects.
Telson is currently in commercial production at its 100% owned Campo Morado Mine in Guerrero, Mexico.
Telson acquired Campo Morado in June 2017 and re-commenced mining and processing operations in
October 2017 with development and pre-production on a trial basis that started at an average processing rate
of 1,400 tonnes per day and effective May 15, 2018 declared commercial production based on operating for
at least 60 consecutive days at 75% of the Campo Morado mill’s nameplate capacity of 2,500 tonnes per day.
Telson's Tahuehueto Project, located in north-western Durango State, Mexico is currently in development and
pre-production at a rate of a pproximately 1 00 tonnes per day u sing a third-party toll mill for processing .
Tahuehueto Project has also entered a construction phase with a timeline to be producing on its own mineral
processing plant, with a designed capacity of 1,000 tonnes per day , during the first quarter of 2019. Regular
metal concentrate deliveries and sales are well underway from both projects.
Visit: www.telsonmining.com
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, P.Geol, President and Director
Qualified Persons
This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President and
Director of Telson Mining Corporation, a Professional Geologist registered in Alberta as a member of the
professional association APEGA, and a Qualified Person as defined by NI 43 -101. Data verification by Mr.
Shearing includes personal inspection of the Campo Morado mine site, reviewing mining facilities, drill core,
underground development and discussing work programs and results with geology and mining personnel.
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Telson has declared commercial production at Campo Morado prior to completing a
feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be
cautioned that Telson’s production decision has been made without a comprehensive feasibility study of established
reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine
and a higher technical risk of failure than would be the case if a feasibility study was completed and relied upon to
make a production decision. Telson has completed a preliminary economic assessment (“PEA”) mining study on the
Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on
the previously identified mineral resources (see News Release dated November 8, 2017 and April 4, 2018). This will
soon be replaced by a pre-feasibility study (“PFS”) that will allow the application of modifying factors to the mineral
resources to allow a portion of them to be converted to mineral reserves.
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 130,184,348
Page 3 of 3
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-
looking statements” (collectively, “Forward- Looking Information”) within the meaning of applicable Canadian
securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events,
conditions or financial performance that is based on assumptions about future economic conditions and courses of
action; the timing and costs of future activities on the Company’s properties, such as production rates and increases;
success of exploration, development and bulk sample processing activities and timing for processing at its own
mineral processing facility on the Tahuehueto project site. In certain cases, Forward- Looking Information can be
identified by the use of words and phrases such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or variations of such words and phrases. In preparing the Forw ard-Looking Information in this news
release, the Company has applied several material assumptions, including, but not limited to, that the current
exploration, development, environmental and other objectives concerning the Campo Morado Mine and the
Tahuehueto Project can be achieved, the continuity of the price of gold, zinc, lead and other metals, economic and
political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or implied by the Forward- Looking
Information. There can be no assurance that Forward- Looking Informati on will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not
assume any obligation to release publicly any revisions to Forward- Looking Information contained in this news
release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information about Telson Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071