Telson Mining Corporation has a 9.3% increase in mill throughput production at Campo Morado in Q2, 2018
Telson Mining Corporation
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Telson Mining Corporation has a 9.3% increase in mill throughput
production at Campo Morado in Q2, 2018
Vancouver, British Columbia, August 2, 2018
Telson Mining Corporation (“Telson” or the “Company”) (TSX-V – TSN, OTC Pink – SOHFF, Frankfurt –
TSGN (formerly SQ82)) is pleased to present the following update for activities at its 100% owned
Campo Morado mine:
• Total mill throughput in Q2 of 162.5kt, a 9.3% increase from Q1
• 11.9 kdmt of zinc concentrate in Q2. 45.1% increase from Q1
• 1.9 kdmt of lead concentrate in Q2. 35.7% increase from Q1
• 8.6 kt of zinc in the zinc concentrate. 53.6% increase from Q1
• 0.6 kt of lead in the lead concentrate. 100.0% increase from Q1
Item Q1 Q2 Increase (%)
Processed tons (kt) 148.7 162.5 9.3%
Zn concentrate (kdmt) 8.2 11.9 45.1%
Pb concentrate (kdmt) 1.4 1.9 35.7%
Zn metal content (kt) 5.6 8.6 53.6%
Pb metal content (kt) 0.3 0.6 100.0%
Since Telson declared commercial production as of May 15, 2018 mining and milling operations at
Campo Morado have run smoothly and continuously while production is steadily increasing towards
managements targets.
Underground bulk mining methods have commenced and with the delivery of three recently
purchased underground low profile 3 0 tonne dump trucks , which were fully paid for with cash
generated from concentrate sales, Telson is increasing mill throughput past its current processing
rate of approximately 2,200 tonnes per day. The Company intends to increase production towards
2,500 tonnes per day over the next several weeks and with some planned modifications to the
crushing circuit intends to increase mill throughput past 2,500 tonnes per day, hoping to achieve up
to 3,000 tonnes per day by year end 2018.
Since commencement of commercial production on May 15, 2018 through to July 30th , 2018 the
Campo Morado mill has produced approximately 9,383 tonnes of zinc concentrates and 1 ,612
tonnes of lead concentrates processing approximately 124,482 tonnes of mineralized material from
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the El Largo zone. During this period average grades of concentrate produced were ; Zinc
Concentrate - 44.5% zinc, 410 g/t silver, 1.25 g/t gold and Lead Concentrate – 29% lead, 709 g/t silver,
6.26 g/t gold. Average recoveries achieved were 73.3% zinc, 31.2% lead, 32% silver and 18% gold.
Underground development work during Q2 advanced a total of 1,088 meters, 710 meters (6x5m) in
mineralized material and 378 meter (5x5m) of access development in waste rock. This development
includes advancing an incline from the El Largo Zone towards the Naranjo Zone, which has
progressed to within 20 meters of the Naranjo Zone. When Naranjo has been reached, a portal will
be developed at Naranjo to access the surface after which all production from El Largo, Naranjo and
Fish Zones will be transported on surface from the new portal reducing haulage time and trucking
costs. The Company has also dewatered the Fish Zone , adjacent to the El Largo Zone, and is
preparing that zone for production.
Future Plans and Initiatives
Telson is planning several initiatives to improve the mill processing plant’s production and
recoveries.
• The first initiative will be to purchase and install Jameson Flotation Cells into the mill process
circuit to increase the zi nc recovery and increase the zinc concentrate grades. Previous
successful testing of Jam eson Flotation technology in Campo Morado has demonstrated
significant improvements in concentrate grades and metal recoveries.
• The second initiative will demonstrate the viability of Glencore Technology’s Albion Process
to potentially increase the recovery of precious metals, (gold and silver). The Company
intends to provide Glencore Technology with bulk samples of Campo Morado
mineralization for Albion process testing, and with positive results, Telson intends to
engage Glencore Technology to initiate technical studies for the design and build of the
Albion Process equipment for purchase and installation at the Campo Morado Mine. There
are four Albion Process™ plants currently in operation with dramatic increases in precious
metal recoveries from refractory ore in all existing Albion Process plants, from previous
recovery percentages in the low 20’s using conventional milling to more than 90% in some
cases using Albion Process, (please visit the following web link for more information
http://www.albionprocess.com/en/Pages/home.aspx ) Telson is targeting for Glencore
Technologies to complete testing and have design and costing completed by end of
2018. With successful initial testing and design work completed and subject to securing
additional construction capital, Telson is targeting late 2019 to complete installation and
commence using Glencore’s Albion Process with the intent to markedly increase precious
metal recoveries and thereby profitability at Campo Morado. Glencore’s Albion Process has
also proven to markedly improve base metal recoveries from several mines currently
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processing with this new technology which could also benefit production at Campo
Morado.
“Management is efficiently implementing many improvements at Campo
Morado, both to underground mining and mill processing which are
substantially reducing operating costs. Equally important are managements
plans to increase base metal recoveries and concentrate grades as well as to
potentially significantly increase precious metal recoveries with new
technologies.” States Antonio Berlanga, CEO, “Our well-structured
improvements that have been and are currently being implemented at the
Campo Morado Mine are increasing sales and decreasing operating costs in
the short-term, but more importantly if Albion Process Technology testing
proves successful, we plan to transform Campo Morado into a predominately
precious metal producer in the mid-term.”
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 production at its 100% owned Campo Morado Mine in Guerrero, Mexico.
Telson acquired Campo Morado in June 2017, re-commenced mining and processing operations in
October 2017 with pre -production from mine development on a trial basis that comme nced at an
average 1,400 tonnes per day and declared commercial production as of May 15th, 2018. Currently
the Campo Morado mine is processing approximately 2,200 tonnes per day through the milling
facilities.
Telson's Tahuehueto Project, located in north -western Durango State, Mexico is currently in pre -
production at approximately 100 tonnes per day utilizing a toll mill for processing, and has entered
a construction phase with a timeline to be producing on site in its own mineral processing plant
capable of milling at least 1,000 tonnes per day in Q1, 2019. Regular metal concentrate delivery
and sales are 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
Telson Mining Corporation
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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 r elied 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.
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 Canad ian 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 Forward-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 c ause 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
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Forward-Looking Information 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