Telson Resources Inc. Delivers Second Shipment of Concentrates from Tahuehueto Pre-Production Plan
Telson Resources Inc. Delivers Second Shipment of
Concentrates from Tahuehueto Pre-Production Plan
Vancouver, British Columbia, August 14, 2017 – Telson Resources Inc. (“Telson” or the “Company”) (TSX
Venture – TSN.V) is pleased to announce that the second shipment of lead and zinc concentrates processed at
the Atocha mineral processing plant (the “ Atocha Mill ”) has been delivered to Mercuria Commodities
Trading, S.A. de C.V. (“ Mercuria”) as per the concentrate purchasing arrangement first announce d in the
Company’s news release of July 6, 2017.
Six concentrate transport trucks departed Atocha Mill site on A ug 11, 2017 carrying four loads of zinc
concentrate, totaling approx imately 129 dry tonnes and
two loads of lead concentrate, totaling approximately 62
dry tonnes.
Pre-production concentrate delivered and/or, en-route to
Mercuria as of Aug 11, 2017 total approximately 227.5
dry tonnes of zinc concentrate and 128.7 tonnes of lead
concentrate. The accumulate d average metallurgical
balance of all pre-production processing is shown below,
The above metallurgical balance summary has been derived from daily continuous sampling and analysis of ore throughput,
concentrate production and tailings material at the Atocha Mill site laboratory. The reader is cautioned that although the Atocha
Mill laboratory is not considered a compliant laboratory under NI 43 101 guidelines, the sampling and analysis is considered
standard procedure for the industry and is of sufficient quality and quantity to determine average assay results acceptable to
Mercuria for preliminary invoicing of up to approximately 85% of the contained metals. Upon delivery of the concentrates to
Mercuria’s warehouse in Manzanillo, a fully independent third-party consulting laboratory, as well as Mercuria, thoroughly sample
and analyse all the delivered concentrate in an industry standard monitored procedure. By comparing the assay results obtained at
the Atocha Mill, Mercuria and the independent assay consultant, a fair assay grade, metal content and sale price is agreed to
between the Company and Mercuria. When final assay results are fully determined and accepted by the parties, likely within the next
two weeks, Telson will publicly disclose those concentrate grade results and agreed to sale prices.
“Pre-production processing at the Atocha Mill site is continual ly improving our recovery methods and
procedures”, states Antonio Berlanga, CEO of Telson, “We have achieved average recoveries from Tahuehueto
ore of 83.5% gold, 89.3% silver, 86.1% lead and 85.4% zinc plus significantly better separation of zinc from
our lead concentrates and overall higher concentrate grades then we experienced earlier this year in our original
industrial scale bulk sample pro cessed at the Andes Mill.” (Pl ease refer to news release dated February 23,
2017 for details of grades, recoveries and sale prices of concentra tes produced from original industrial scale
bulk sample.)
T:M:H 4260.00
Au (g/t) Ag (g /t ) Pb % Zn % Cu % Fe % As % Au Ag Pb Zn Cu Fe
CABEZA 4112.245 6.29 60.56 2.09 5.64 0.19 4.55 100 100 100 100 100 100
CONC.PB 166.283 124.99 1047.03 42.11 14.13 2.88 4.61 79.85 77.32 81.59 10.13 68.21 4.37
CONC.ZN 317.248 3.04 85.48 1.24 55.07 0.11 3.21 3.71 12.04 4.58 75.34 5.05 5.79
COLA FINAL 3628.714 1.18 6.60 0.33 0.93 0.05 4.35 16.44 10.64 13.82 14.53 26.74 89.84
Cab.Calculada 4112.245 6.33 54.76 2.09 5.64 0.17 4.27 100.0 100.0 100.00 100.00 100.00 10 0.00
ASSAY RECOVERIES %
AVERAGE METALURGICAL BALANCE
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 104,149,005
As of August 12, 2017, the Company has delivered approximately 4,910 tonnes of ore mined from the Level
10 ore chute to the Atocha Mill site and processed approximatel y 4,260 tonnes of ore through mill. A third
concentrate delivery is expected to depart Atocha in the next s everal days upon completion of processing the
remaining stockpiled ore at which time processing will be temporarily suspended until the Atocha ore stockpile
is replenished. Telson currently has 1,700 tones of ore mined and stockpiled at Tahuehueto awaiting transport
to the Atocha Mill. Ore processing at Atocha is anticipated to re-commence early September.
Telson Resources Inc. is a Canadian based resource development company advancing two gold, silver and
base metal projects towards production over the coming months of 2017 and early 2018. Telson's Tahuehueto
Project, located in north-western Durango State, Mexico and its recently acquired Campo Morado Mine in
Guerrero, Mexico purchased from Nyrstar Mining are both polymet allic deposits containing significant gold,
silver, lead, zinc and copper. Subject to securing funding, Tel son plans to recommence mining operations at
Campo Morado within 3 to 5 months while at the same time develop it's Tahuehueto Project through the mine
construction phase with an anticipated timeline to be producing at the project site in its own mineral processing
facility by the end of the first quarter of 2018 or earlier.
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, P.Geol
President
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 reg istered 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 historical facts are “forward-looking information” or
“forward-looking statements” (collectively, “Forw ard-Looking Information”) within the meaning of
applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure
regarding possible events, conditions or financial perfor mance that is based on assumptions about future
economic conditions and courses of action; the timi ng and costs of future activities on the Company’s
properties; success of exploration, development and bulk sample processing activities; anticipated results of
check assay results; and processing plans at the Atocha Mineral Processing Plant for mineralized material
from the Company’s Tahuehueto project. 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 Tahuehueto Project can
be achieved; that the implementation of the selective mining method will prove feasible based on the results of
the bulk sample; that the mineral processing plant recen tly acquired by the Company will be successfully
installed and commissioned, the con tinuity of the price of gold and other metals, economic and political
conditions and operations. Forward- Looking Information involves know n and unknown risks, uncertainties
and other factors which may cause the actual results, p erformance or achievements of the Company to be
materially different from any future results, perform ance 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 assu me 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.
Cautionary Note Regarding References to Resources and Reserves
This news release uses the terms "measured and indi cated resources" and "inferred resources". We advise
U.S. investors that while these term s 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
existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgrade d to a higher category. Under Canadian rules,
estimates of inferred mineral resources ma y not form the basis of a feasibility study or prefeasibility studies,
except in rare cases. The SEC normally only permits issuers to report minera lization 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 par t or all of mineral deposits in this category will ever
be converted into reserves. U.S. in vestors are cautioned not to assume that any part or all of an inferred
resource exists or is economically or legally minable.
Contacts
Glen Sandwell, Telson Resources Inc.
Corporate Communications
Tel: +1(604)684-8071