Telson Resources Inc. Reports Final Sale Results from Its Industrial Scale Bulk Sample Generating Cash of Receipts of USD $1,470,449.00 Producing 201 Tonnes of Lead and 259 Tonnes of Zinc Concentrates containing 27.9 kg of Gold
Telson Resources Inc. Reports Final Sale Results from Its Industrial Scale Bulk
Sample Generating Cash of Receipts of USD $1,470,449.00 Producing 201
Tonnes of Lead and 259 Tonnes of Zinc Concentrates containing 27.9 kg of Gold
and 192.6 kg of Silver from Its Tahuehueto Gold/ Silver/ Lead/ Zinc Project
Vancouver, British Columbia, February 23, 201 7 – Telson Resources Inc. (“ Telson” or the “ Company”)
(TSX Venture – TSN.V) is pleased to announce that it has finali zed the sale of lead and zinc concentrates
produced from its industrial scale bulk sample collected from t he El Creston zone on its 100% owned
Tahuehueto Project (the “Project”) located in northern Durango State, Mexico.
Mercuria Commodities Trading S.A, de C.V. (“ Mercuria”) purchased all 259 tonnes of zinc concentrate as
well as 97 tonnes of lead concentrate with the remaining 104 to nnes of lead concentrate being purchased by
Altiplano Processing Facility located in Matehaula, Mexico wher e concentrate leaching tests are currently
being conducted to analyse Telson’s ability to recover the subs tantial precious metal content from the
concentrate in advance of future concentrate production sales.
Approximately 3,500 tonnes of ore was collected from new underg round development on Level 10 on the El
Creston Zone at the Tahuehueto Project. The sample was transported in conventional dump trucks to the Andes
Processing Plant located at Guanacevi, Durango, México, approximately 270 km by road from the project site.
Processing of the bulk sample occurred between late November 2016 through early January 2017.
The total bulk sample was determined to have an average head grade of 9.5 g/t gold, 63.9 g/t silver, 3.54% lead
and 6.24% zinc.
Sulfide flotation processing produced,
201 dry tonnes of lead concentrate with average grades of 124.4 g/t gold, 786.4 g/t silver, 40.7% lead
and 24.7% zinc.
259 dry tonnes of zinc concentrate with average grades of 11.18g/t gold, 147.07g/t silver, 5.55% lead
and 43.57% zinc
The sale price of the concentrate was determined through negotiation by comparing the assay results obtained
on behalf of the Company at the Andes Mill processing site labo ratory, the concentrate purchaser’s internal
assays laboratories and the independent umpire assayer, Ersa Global Mex S.A. de C.V. (“Ersa”).
“Telson’s management is very pleased with the bulk sample testi ng results and with the concentrate sale
proceeds generated," states Señor Antonio Berlanga, CEO of the Company, “considering that the Andes mill
is not ideally configured for processing Tahuehueto ore, we hav e obtained quality saleable lead and zinc
concentrates with high precious metal content. We are very conf ident in our ability to improve these results
once we have installed and commissioned our recently purchased Tahuehueto Mineral Processing Plant on
site, as it will be engineered to utilize a mill configuration and design ideally suited for the unique
characteristics of the Tahuehueto project’s mineralization”.
The Company’s February 16, 2017 news release summarized Telson’s acquisition of the Tahuehueto Mineral
Processing Plant which the Company, subject to securing adequate funding, intends to install on site to advance
Telson Resources Inc.
(TSX.V: TSN OTCBB: SOHFF
Shares Issued: 93,891,995
Tahuehueto towards a fully commi ssioned and operating underground mining operation over the year ahead.
Please refer to that news release for additional information.
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, 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 the in stallation and commissioning of a mill at 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”, “es timates”, “forecasts”, “intends”, “an ticipates” or variations of such
words and phrases. In preparing the Forward-Looking In formation 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 recently acquired by the Company will be successfully installed and
commissioned, 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 achi evements 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 t hose anticipated in such statements. Accordingly,
readers should not place undue reliance on Forward-Looki ng Information. Except as required by law, the
Company does not assume any obligation to release pub licly 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
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