Tahuehueto Underground Development Exposes new mineralization along Perdido Structure
Telson Mining Corporation
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Tahuehueto Underground Development Exposes new mineralization
along Perdido Structure
Vancouver, British Columbia, February 22, 2019
Telson Mining Corporation (“Telson” or the “Company”) (TSX Venture – TSN.V) is pleased to provide a
development update and reports significant assay results from underground development at its Tahuehueto
Mine development and construction Project, Durango State, Mexico.
Highlights
Tahuehueto underground development along the major mineralized structure (see Figure 1), El Perdido, has
now been extended approximately 150 meters along strike to the north-east from the Level 12 access
decline. The first 60 meters of this development was designed to prepare reserves identified by previous
drilling for mining, however, the development drift is being extended in continuous mineralization beyond
known reserves/resources and to date has exposed approximately an additional 100 meters of continuous
mineralization beyond the know drilling. Channel sampling results received to date within a portion of this
development are presented below. (see Figure 2 & Figure 3) Additional channel sampling assay results
within this new development mineralization will be disclosed when assay results are received by the
Company.
Width Assays
Au_g/t Ag_g/t Cu_% Pb_% Zn_% AuEq_g/t
6.74 3.80 53 0.42 2.42 5.21 9.59
4.40 5.39 62 0.46 3.01 8.50 13.69
3.55 8.61 35 0.12 1.39 0.88 10.48
6.77 5.36 109 0.25 0.27 2.38 8.65
3.03 5.27 54 0.14 0.27 2.29 7.69
2.00 5.54 42 0.12 2.17 6.18 11.17
Gold Equivalent Calculation: - Metal prices used in US$ – Au $1,240, Ag $14.20, Cu $2.80/lb, Pb $0.91/lb, Zn $1.09/lb
Formulas: 1st calculate a metal factor: for base metals (gold price/31.1 g/Troy oz)/ (base metal price*2.2kg/lb*10) = Base Metal Factor.
For Silver Metal Factor = gold price/silver price.
AuEq grade = Gold grade + (Ag grade/Ag Factor) + (Cu grade/Cu Factor) + (Pb grade/ Pb Factor)+ (Zn grade/Zn factor)
All the above samples were submitted to SGS De Mexico. S.A. de C.V. independent laboratory located in
Durango city Mexico. Assay methods utilized were GE_FAA313 and GE_ICP14B for gold and silver
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respectively with over-limits followed up with GO_FAG303, Multi-element GE_ICP14B for lead and zinc with
over-limits assayed with GO_ICP90Q. Additional detail on assay methodology used can be found on SGS
website at https://www.sgs.mx/en/mining
2018 Pre-production Summary
• Pre-production mining produced approximately 37,711 tonnes of ore with average grades of 3.86 g/t
Gold, 43.6 g/t Silver 3.92% Zinc, 0.24% Copper, 2.10% Lead,
• Approximately 818 tonnes of lead concentrate produced from pre-production was sold during with
average grades of 82.22 g/t Au, 878.72 g/t Ag, 41.03% Pb and 2.50% Cu for approximate gross
proceeds of US $3.41 million.
• 1,244 tonnes of zinc concentrate produced from pre-production was sold during the 2018 fiscal year
with average grades of 49.38% Zn, 91.95 g/t Ag and 6.92 g/t Au for approximate gross proceeds of
US $1.41 million.
Mine Construction & Development Summary
Telson advanced a total of 1.44 km of underground development, 365 meters within ore which supplied the
pre-production toll milling feed and 1,074 meters in waste preparing the mine for future commercial
production. Development included the Level 12 decline, the El Perdido development drift, El Creston
development drift, the Haulage level portal and the main access decline for Level 20.
Mill construction, although somewhat behind schedule from unexpected construction delays, is progressing
with concrete foundations nearing completion. Steel structures are currently being erected to house the
floatation and filtration equipment while grinding and crushing areas are also under construction. (See
Image 1 and Image 2) Preparation of the mine laboratory and camp facilities are nearing completion. Water
pumping system is under construction in its first stage with the access road completed and pumping
stations sites cleared.
For accounting purposes, any sale proceeds from pre-production prior to the Company declaring commercial
production are considered directly attributable toward advancing those assets to the condition necessary for them
to be capable of operating in the manner intended by management, therefore these are capitalized as a reduction
of mineral interest and development assets.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base
metal mining projects. Effective May 15, 2018 Telson declared commercial production at its 100% owned
Campo Morado Mine. Telson is currently producing zinc and lead concentrates with gold, silver and copper
as by-products.
Telson's 100% owned Tahuehueto Project, located in north-western Durango State, Mexico is currently in
construction development. Pre-production commenced at Tahuehueto in August 2017, currently mining at a
Telson Mining Corporation
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Shares Issued: 139,569,152
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rate averaging approximately 200 tonnes per day and shipping ore to a third-party toll mill for processing.
Management has a targeted timeline at Tahuehueto to be producing with its own on-site mineral processing
plant, with a designed capacity of at least 1,000 tonnes per day, Q3-Q4 2019.
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
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 m eaning of applicable Canadian
securities laws. Forward Looking Information includes, but i s 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; timing for the restart of continuous
mining operations at the Campo Morado Mine, and timing for processing at its own mineral processi ng 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 cur rent exploration, development,
environmental and other objectives concerning the Campo Mor ado Mine and the Tahuehueto Project can be
achieved, the continuity of the price of gold 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 Information will prove to be accurate, as actual results and future events could differ
Telson Mining Corporation
TSX.V: TSN OTCBB: SOHFF
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Shares Issued: 139,569,152
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materially from those anticipated in such statements. Accordingly, readers s hould 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