Telson Reports Q3 2020 Production Results for Campo Morado Mine
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 182,691,619
Page 1 of 3
Telson Reports Q3 2020 Production Results for Campo Morado Mine
Vancouver, British Columbia, Oct 15, 2020
Telson Mining Corporation (“Telson” or the “Company” (TSX Venture Exchange-TSN, OTC Pink-SOHFF, Frankfurt-TSGN
(formerly SQ82)) is pleased to provide shareholders the preliminary production results for the third quarter (“ Q3”)
2020 of Campo Morado Mine located in state of Guerrero, Mexico.
Campo Morado operations during Q3 2020 have shown a steady increase in production with September throughput
production increasing to 52,352 tonnes of mineralized material being processed resulting in 3, 123 tonnes of zinc
concentrate and 671 tonnes of lead concentrate for the month. Head grade of the mineralized material processed,
concentrate grades and recoveries are presented in table below.
July and August production were negatively impacted as a result of SAG mill liner failures which caused excessive mill
downtime. Management took delivery of new SAG mill liners near the end of August, allowing the SAG mill design to
revert to a previous and historically most efficient design at the end of August . The new liner design was installed
JULY AUGUST SEPTEMBER Q3 2020
36,716 38,370 52,352 127,438
2,341 2,314 3,123 7,778
505 434 671 1,609
1,097 1,074 1,430 3,600
29 38 47 114
0.79 1.35 1.06 1.07
104.31 101.32 106.58 104.34
0.96 0.98 0.99 0.98
4.26 4.03 3.96 4.07
0.37 0.41 0.41 0.40
Zinc Con Zn % 46.84 46.40 45.77 46.28
Ag g/t 453.00 501.00 550.00 506.00
Lead Con Pb % 19.90 22.37 21.51 21.23
Ag g/t 562.00 501.00 592.00 558.00
Au g/t 4.50 1.66 2.41 2.87
70% 69% 69% 69%
28% 26% 28% 27%
15% 4% 7% 9%
35% 35% 38% 36%
REALIZED CONCENTRATE REVENUES - US$ (net of treatment charges and penalties)
1,451,000$ 964,000$ 2,060,000$ 4,475,000$
376,000$ 324,000$ 504,000$ 1,204,000$
1,827,000$ 1,288,000$ 2,564,000$ 5,679,000$
Zn %
Pb %
Au %
Ag %
Au g/t
Ag g/t
Pb %
Zn %
Cu %
Zn Concentrate
Pb Concentrate
Total Revenues (US$)
Q3 2020 PRODUCTION RESULTS
RECOVERIES
AVERAGE CONCENTRATE GRADE
AVERAGE HEAD GRADES
Contained Zinc (tonnes)
Contained Lead (tonnes)
Milled tonnes
Zinc Concentrate (tonnes)
Lead Concentrate (tonnes)
PRODUCTION
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 182,691,619
Page 2 of 3
and operational on September 6 and the SAG mill has successfully operated continuously, averaging 2,181 tonnes
per day, over the 24 operational days during the month of September.
Preliminary realized revenues for Q3 2020, net of all concentrate sale deductions such as treatment charges, penalties
etc., were approximately US$5,679,000. (final sales numbers are subject to review and agreement of final assay results).
C1 cash costs , all-in sustaining cost per pound and other operational financial details will be disclosed in the
company’s upcoming Q3 2020 quarterly report which is due to be filed on or before November 30, 2020.
“After losing production as a result of COVID-19 pandemic government mandatory shut down earlier this year and
dealing with operational difficulties largely related to the SAG mill failures, with the new liner design fully installed
and performing above expectations, we now have Campo Morado Mine operating at full capacity and achieved a
very good month of production in September”, states Ralp h Shearing, president and CEO of Telson , “October is
underway and looks like we could see similar production results this month with the mill continu ing to p erform
perfectly.”
Shares for Debt
As per the Company’s news release dated June 16, 2020, the Company has closed its debt settlement with Accendo
Banco, S.A. Institucion de Banco Multiple (“Accendo”). Accendo has funded the payout of $659,758 of debt related to
Tahuehueto mining project’s suppliers and accordingly, the Company has issued to Accendo 7,330,651 shares at a
deemed price of $0.09 per share.
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's Tahuehueto mining project, located in north-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 assets 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 2021, 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 purchasing 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 for 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 current conditions Telson just brought the mine out of
care and maintenance and reinitiated mining and milling operations during January 2020.
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.
Visit: www.telsonmining.com
Telson Mining Corporation
TSX.V: TSN OTC Pink: SOHFF
Frankfurt: TSGN.F
Shares Issued: 182,691,619
Page 3 of 3
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, 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, 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 c ompleted
and relied upon to make a production decisio n. Telson has completed a preliminary economic assessm ent (“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).
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 applica ble Canadian securities laws. Forward Looking Informat ion
includes, but is not limited to, disclosure regarding the planned recommencement of mining operations at Campo Morado; 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 processing activities, and timing for processing at its own mineral processin g 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 wor ds 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 t he current
exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be
achieved; that recommencement of operations at Campo Morado will proceed as planned; 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 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