Mr. Antonio Berlanga reports

PROCESS TESTING SHOWS INCREASE IN MILL THROUGHPUT AVAILABLE AT CAMPO MORADO

Telson Mining Corp. has released positive testing results for increasing the SAG (semi-autogenous grinding) mill throughput processing rate by at least 15 per cent by reducing the size of crushed mill feed.

Highlights:

• During four hours of testing 382 tonnes were milled at 80 per cent minus two inches obtaining an average processing rate of 95.5 tonnes/hour (equivalent to 2,292 tonnes/day).
• Testing at 80 per cent minus two inches achieved approximately 15-per-cent increase over processing 100 per cent minus-five-inch feed.

 
                                  Projected tonnes/day    Zn %         Zn %
Time                 Tonnes/hour            (24 hours)    head  concentrate

7 a.m. to 8 a.m.              84                 2,016     4.5           47
8 a.m. to 9 a.m.              95                 2,280     4.5           47
9 a.m. to 10 a.m.             97                 2,328     4.5           47
10 a.m. to 11 a.m.            98                 2,352     4.5           47
11 a.m. to 12 p.m.            92                 2,208     4.5           47
12 p.m. to 1 p.m.             82                 1,968     4.5           47
1 p.m. to 2 p.m.              79                 1,896     4.5           47

Testing commenced at 8 a.m. and ended at 12 p.m. when no more mineral was available at a size less than minus two inches. The current design of the mills crushing circuit allows a minimum size of minus five inches to be processed. Based upon Antonio Berlanga, chief executive officer, and mining engineer's experience in other mining operations working with similar milling circuits, a significant increase in production can be achieved by reducing the size of crushed mineral mill feed. The successful testing just completed at Campo Morado was designed to confirm if this technique could produce similar production increases. Of note is that the available minus-two-inch mill feed was limited such that a maximum of 80 per cent at minus two inches was processed over a four-hour period.

Mr. Berlanga stated: "As director of La Negra mine, I was responsible for increasing the mines processing rate by up to 37 per cent by reducing the mill ore feed from a traditional minus three-eighths inches to minus one-eighth inch. As one can see from our Campo Morado test results, feeding smaller material to the SAG mill increased the milling capacity up to 15 per cent, showing clearly that by feeding a smaller size to the SAG mill it is possible to increase its grinding capacity. Testing also showed that the efficiency of other stages in the milling process (vertical mill (Vertimill), flotation cells, thickeners and filters) were not affected by the higher throughput volume as zinc recoveries and quality of the Zn concentrate at 47 per cent Zn were maintained, showing that the mill worked smoothly at increased capacity."

With Telson's just-completed positive testing to verify if this technique was applicable at Campo Morado, Telson now intends to modify its crushing circuit to produce a consistent minus-two-inch feed and upgrade the pumping system to allow effective movement of the increased volumes in order to increase mill throughput and productivity while maintaining excellent zinc concentrate grades. Management anticipates that with a consistent 100-per-cent minus-two-inch mill feed, the company can achieve mill throughput processing rates in excess of the average 96 tonnes per hour (equivalent to 2,300 tonnes per day) achieved over four hours in the above testing.

About Telson Mining Corp.

Telson is a Canada-based mining company with two Mexican gold, silver and base metal mining projects. Effective May 15, 2018, Telson declared commercial production at its 100-per-cent-owned Campo Morado mine. Telson is currently producing zinc and lead concentrates with gold, silver and copper as byproducts.

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