Telson Resources Inc. Announces the Acquisition of Mineral Processing Plant for its Tahuehueto Project
Telson Resources Inc. Announces the Acquisition
of Mineral Processing Plant for its Tahuehueto Project
Vancouver, British Columbia, February 16, 2017 – Telson Resources Inc. (“Telson” or the “Company”) (TSX Ventu re
– TSN.V) is pleased to announce that it has completed an agreem ent for the acquisition of a sulfide flotation mineral
processing facility, (the “Tahuehueto Mineral Processing Plant”)
The Tahuehueto Mineral Processing Plant consists of most of the milling equipment required, once installed and operational,
to process Tahuehueto ore at an estimated capacity of at least 550 tonnes per day at the Tahuehueto project. A complete list
of the milling and processing equipment purchased can be viewed on the Company’s website <here>.
The Tahuehueto Mineral Processing Plant is currently strategica lly located in storage near Gomez Palacio, Durango State,
Mexico, approximately 225 km fro m Tepehuanes, with approximatel y another 120 km by road from Tepehuanes to the
Tahuehueto project site.
Pursuant to the terms of the sale and purchase agreement (the “ Purchase Agreement”) Telson has acquired all of the
Vendor’s interest in the Tahuehueto Mineral Processing Plant in consideration of CDN $1,300,000 with 50% payable
immediately and the balance payable upon removing the equipment from it current storage location.
Telson plans to immediately start the process to relocate the
equipment to a staging area closer to the Tahuehueto Project site in
Tepehuanes where all equipment will be fully inspected and
refurbished where necessary over the next several months. Durin g
this time site preparation and engineering work at Tahuehueto w ill
continue in order to prepare t he site to receive the Tahuehueto
Mineral Processing Plant for installation.
All equipment purchased and comprising the Tahuehueto Mineral
Processing Plant has been inspect ed by an independent mining
contractor firm based out of Durango, Mexico. Equipment
purchased is estimated to make up approximately 80% of the tota l
milling equipment required to cons truct a fully functioning mil l
facility at Tahuehueto. Any equipm ent lacking is currently bein g
sourced by Telson and will be adde d to the Tahuehueto Mineral
Processing Plant as located and acquired.
“The purchase of this fully refurbished milling facility is a significant step towards reaching management’s plans and goals
of building and operating an underground mining operation at Tahuehueto in the very near future.” states Antonio Berlanga,
CEO and Director of Telson Resources Inc. , “Having the equipment sourced from Durango, Mexico, within the same state
as our Tahuehueto Project, has saved considerable time in our development plan schedule and purchasing quality refurbished
used equipment will also reduce our capital cost requirements f rom purchasing new equipment as estimated within our
recently published Prefeasibility Study Report filed in accorda nce with NI 43-101 Standards of Disclosure for Mineral
Projects (see news release dated January 23, 2017).”
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, President
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 93,516,995
Refurbished Flotation Cell
Qualified Person
This press release was prepared under the supervision and revie w of Ralph Shearing, P.Geol., President and
Director of Telson Resources Inc., a Professional Geologist registered in Alberta as a member of the professional
organization APEGA, and a Qualified Person as defined by NI 43-101
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not hist orical facts are “forward-looking information” or “forward-
looking statements” (collectively, “Forward-Looking Inform ation”) within the meaning of applicable Canadian securities
laws. Forward Looking Information includes, but is not li mited 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; succ ess of exploration, development and bulk sample processing
activities; anticipated results of check assay results; and the cost, viability and timing of construction of a mineral
processing plant to service the Tahuehueto Project. In certain cases, Forward-Looking Information can be identified by the
use of words and phrases such as “plans”, “expects”, “schedul ed”, “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 no t limited to, that the curren t exploration, development,
environmental and other objectives concerning the Tahuehueto Project can be achieved; that the implementation of the
selective mining method will prove feasible based on the results of the bulk sample; the continuity of the price of gold and
other metals, economic and political conditions and operations. Forward-L ooking 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 fr om any future results, performance or ac hievements 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 st atements. 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 revisi ons to Forward-Looking Information cont ained in this news release to reflect
events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Cautionary Note Regarding References to Resources and Reserves
This news release uses the terms "measu red and indicated resources" and "inferred resources". We advise U.S. investors
that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC
Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. "Inferred
resources" have a great amount of uncertainty as to their exist ence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that al l or any part of an inferred mineral res ource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare ca ses. The SEC normally only permits issuers to report mineralization that does not
constitute SEC Industry Guide 7 compliant "reserves", as in -place tonnage and grade without reference to unit measures.
U.S. investors are cautioned not to assume that any part or a ll of mineral deposits in this category will ever be converted
into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically
or legally minable.
Contacts
Renmark Financial Communications Inc.
Barry Mire: [email protected]
Tel: +1(416)644-2020 or +1(514)939-3989
www.renmarkfinancial.com
Glen Sandwell, Telson Resources Inc.
Corporate Communications
Tel: +1(604)684-8071