Telson Announces Temporary Suspension of Operations at Campo Morado due to COVID-19 Update
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 159,037,594
Page 1 of 3
Telson Announces Temporary Suspension of Operations at Campo Morado
due to COVID-19 Update
Vancouver, British Columbia, April 06, 2020
Telson Mining Corporation (“ Telson” or the “ Company” (TSX Venture Exchange-TSN, OTC Pink-SOHFF,
Frankfurt-TSGN (formerly SQ82)) informs shareholders that the Mexican Ministry of Health has proclaimed
a national health emergency with an immediate suspension order of all “non-essential” public and private
sector business, including mining in order to miti gate the spread and tran smission of the COVID-19
virus. The order became effective on its publication da te in the Official Gazette of the Federation (dated
March 31, 2020) and remains in place for a period of 30 days, from March 30 to April 30, 2020.
As a result, Telson announces that it immediately co mmenced the process of winding down operations at
its Campo Morado mine in Guerrero, Mexico to comply with the procla mation and is in the process of
reducing its workforce on site in compliance with the Decree and will implem ent care and maintenance
activities during the suspension. Appropriate security and environmental procedures will remain fully
functional. As this unprecedented situation continues to evolve on often an hourly basis, we appreciate
our shareholders’ support as we navigate the impacts of the COVID-19 pandemic on the business world.
The Company implemented control measures several week s ago to assist with preventing the spread of
COVID-19. These include training of personnel with resp ect to safety in prevention of COVID-19 infection,
social distancing, the cancellation of any non-esse ntial visit to the mines, comprehensive sanitation
measures for the workplace and company transportation, and pre- screening for virus symptoms.
Additionally, access restrictions to limit travel in and out of the loca l communities have previously been
implemented.
"The health and safety of our empl oyees, union partners, contractors and the communities in which they work
and live are a priority,” said Ralph Sh earing, President and CEO of Telson Mining. “We will continue to provide
significant support to our employees and where possible to local community residents. To date, Telson has not
experienced any incidents related to COVID-19 at its sites or corporate offices.”
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver
and base metal mining projects.
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 159,037,594
Page 2 of 3
Telson's Tahuehueto mining project, located in nort h-western Durango State, Mexico is currently under
construction having advanced to approximately 70% completion and waiting for final funding to finish
construction of the processing plant and related a ssets to produce gold, silver, lead and zinc in
concentrates within its own on-site mineral processing facility, with a designed capacity of at least 1,000
tonnes per day. The Company is targeting completion of construction during 2020, six to eight months
after securing final funding.
Campo Morado is a polymetallic base metal mine with mining and milling equipment capable of producing
up to 2,500 tonnes per day. Four months after purcha sing Campo Morado, Telson brought the mine back
into operation initiating preproduction in October 2017 and declared commercial production in May 2018,
operating the mine continuously fo r 22 months until August 2019 when the project was put on care and
maintenance as a result of declining zinc prices and community issues. With improving conditions Telson
brought the mine out of care and maintenance and reinitiated mining and milling operations during
January 2020.
Visit: www.telsonmining.com
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, CEO/President and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Telson declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves
demonstrating economic and technical viability. Accordingly, read ers 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 com pleted
and relied upon to make a production decision. Telson has comple ted a preliminary economic assessment (“PEA”) mining study on t he
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).
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 Canadi an securities laws. Forward Looking Inform ation
includes, but is not limited to, disclosure regarding the planned recommencement of mining operations at Campo Morado; the abil ity to
recommence outstanding payments to Nyrstar; and other possible events, conditions or financial performance that are 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 proce ssing activities, and timing f or
processing at its own mineral processing facility on the Tahuehue to 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 cu rrent exploration, development, environmental and other objecti ves
concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo Morado
will proceed as planned; that discussions with Nyrstar and the abeyance of any potential default proceedings will be completed in a timely
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 159,037,594
Page 3 of 3
manner and on reasonable terms, 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 result s,
performance or achievements of the Company to be materially different from any future results, performance or achievements expressed
or implied by the Forward-Looking Informatio n. There can be no assurance that Forwar d-Looking Information will prove to be accu rate,
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 as sume any obligation to release
publicly any revisions to Forward-Looking Info rmation contained in this news release to reflect events or circumstances after t he 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 E xchange)
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