VANCOUVER, British Columbia -- (Business Wire)
Telson Mining Corporation (“Telson” or the “Company”) (TSX Venture:
TSN.V)(OTCBB: SOHFF)(Frankfurt: TSGN.F)(Shares Issued: 125,726,075) is
pleased to present pre-production results of development mining,
concentrate production and metallurgical balances for the first three
months of 2018 at its 100% owned Campo Morado Mine ("Campo Morado" or
the "Project") located in Guerrero State, Mexico.
Campo Morado 1st Quarter 2018 Preproduction
Highlights
-
Mill processed 148,676 Tonnes of mineralized development material
during first quarter 2018 with,
-
Average head grade of 3.65% Zinc, 0.41% Copper, 0.90% Lead, 1.14 g/t
Gold, 108 g/t Silver,
-
Produced 8,206 wet tonnes of Zinc concentrate with average grades of
45.16% Zn, 1.26% Cu, 1.94% Pb, 436 g/t Ag, 2.08 g/t Au
-
Produced 1,365 wet tonnes of Lead concentrate with average grades of
24.94% Pb, 8.29% Zn, 2.11% Cu, 616 g/t Ag, 8.92 g/t Au
-
Produced 82.22 wet tonnes of copper concentrate 9.87% Cu, 1,753 g/t
Ag, 11.88 g/t Au, 10.54% Pb, 5.76% Zn (Copper concentrate only
produced for two week of the period)
-
Estimated 100% cash selling value for 7,297.27 tonnes of shipped zinc
concentrates is US $6,918,452 and for 1,157.44 tonnes of shipped lead
concentrates is US $785,670, totaling US $7,704,122
-
Mill throughput processing rate increased from 1,500 tonnes/day in
January to 1,900+ tonnes per day early April 2018
-
Underground development totaled 1225 meters with 896m in mineralized
material and 329m in waste
-
Total mineralized material mined was 113,477 tonnes during the quarter
Note: Shipped concentrates are paid at 90% estimated metal content
less deductions upon delivery to Trafigura warehouse in Manzanillo.The
estimated 100% cash selling price is subject to minor changes once final
assaying results are agreed to by the Company and Trafigura at which
time the final approximate 10% is paid.
José Antonio Berlanga, CEO and Director, states: "As we near the end of
the El Largo Zone development phase in preparation of initiating bulk
mining methods within the next few weeks, we have been improving
efficiencies at the mill resulting in successfully increasing zinc
concentrate grades to an average of 43.54% zinc and lead concentrate
grades to an average of 34.88% lead during the first two weeks of April
2018. During this same two-week period, we have achieved improved zinc
metal recoveries averaging 72.7% zinc into the zinc concentrates. As
soon as we initiate the bulk mining methods, within the next several
weeks, the mine will be able to deliver a more consistent mineralized
mill feed, without excess dilution of mining development material from
various areas within the large El Largo Zone. Processing mineralized
mill feed of more consistent grade and quality, containing less
dilution, should allow us to further improve concentrate grades and
recoveries. In addition, bulk mining methods will allow us to ramp up
pre-production towards the 2,500 t/d capacity of the mill and further
reduce direct site costs of approximately US $48.5 per tonne. These
current direct site costs are approximately 33% lower than the estimated
direct site costs of US $72.26 per tonne used for the same categories in
our recently published independent Preliminary Economic Assessment.”
The above referenced Preliminary Economic Assessment ("PEA") dated March
31, 2018 was prepared in accordance with National Instrument 43-101 and
has been published on SEDAR or is also available on the Company’s web
site, www.telsonmining.com.
Non-IFRS (international financial reporting standards) performance
measures - This news release refers to total direct site costs, which
are non-IFRS performance measures. The Company believes that these
measures, in addition to conventional measures prepared in accordance
with IFRS, provide investors an improved ability to evaluate the
underlying performance of the Company. The non-IFRS measures are
intended to provide additional information and should not be considered
in isolation or as a substitute for measures of performance prepared in
accordance with IFRS. These measures do not have any standardized
meaning prescribed under IFRS and therefore may not be comparable with
other issuers.
For accounting purposes, any sale proceeds from preproduction prior
to the Company declaring commercial production at the Campo Morado Mine
are considered directly attributable toward advancing the asset to the
condition necessary for it to be capable of operating in the manner
intended by management, therefore these are recorded as a reductions of
development expenses.
Direct site costs - Telson is reporting direct site costs on per
tonne of mineral processed. Sale proceeds reported are from
preproduction during the mines commissioning period. The Company
believes that, in addition to conventional measures prepared in
accordance with IFRS, certain investors use this information to evaluate
the Company's performance and ability to generate operating earnings and
cash flow from its mining operations. Management also uses this metric
as an important tool to monitor operating performance. Direct site costs
are calculated using costs such as costs incurred in mining, processing
and site administration divided by total tonnages processed. Costs are
exclusive of depreciation and other non-cash items. Other companies may
calculate this measure differently.
January 1 - March 31, 2018 |
|
| |
AVERAGE METALLURGICAL BALANCE 1ST QUARTER | | | |
Feed Grade (From Mass Balance) | | | |
|
|
| Tonnes |
|
|
| Grade | | | |
| | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | |
|
|
|
|
| Zn% |
|
|
| Cu% |
|
|
| Pb% |
|
|
| Au g/t |
|
|
| Ag g/t | | | |
Ore Tonnes |
|
| 148,676 |
|
|
| 3.65 |
|
|
| 0.41 |
|
|
| 0.9 |
|
|
| 1.14 |
|
|
| 108 | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | |
| | | Recovery | | | |
|
| WMT % |
|
|
| Zn% |
|
|
| Cu% |
|
|
| Pb% |
|
|
| Au% |
|
|
| Ag% | | | |
Zn Concentrate
| | |
5.5%
| | | | 68.2% |
|
|
|
17.0%
|
|
|
|
11.9%
|
|
|
|
10.1%
|
|
|
|
22.2%
| | | |
Cu Concentrate
| | |
0.1%
| | | |
0.1%
| | | | 1.3% | | | |
0.6%
| | | |
0.6%
| | | |
0.9%
| | | |
Pb Concentrate
|
|
|
0.9%
|
|
|
|
2.1%
|
|
|
|
4.7%
|
|
|
| 25.4% |
|
|
|
7.2%
|
|
|
|
5.2%
| | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | |
| | | Tonnes | | | | Grade | | | |
|
|
|
|
| Zn% |
|
|
| Cu% |
|
|
| Pb% |
|
|
| Au g/t |
|
|
| Ag g/t | | | |
Zn Concentrate
| | |
8,206.22
| | | | 45.16 | | | |
1.26
| | | |
1.94
| | | |
2.08
| | | |
436
| | | |
Cu Concentrate
| | |
82.22
| | | |
5.76
| | | | 9.87 | | | |
10.54
| | | |
11.88
| | | |
1,753
| | | |
Pb Concentrate
|
|
|
1,365.66
|
|
|
|
8.29
|
|
|
|
2.11
|
|
|
| 24.94 |
|
|
|
8.92
|
|
|
|
616
| | | |
| | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | |
| | | | Content | | | |
|
|
| Zn, t |
|
|
| Cu, t |
|
|
| Pb, t |
|
|
| Au, Kg |
|
|
| Ag, Kg | | | |
Zn Concentrate
| | | |
3,705.92
| | | |
103.58
| | | |
159.44
| | | |
17.04
| | | |
3,579.24
| | | |
Cu Concentrate
| | | |
4.74
| | | |
8.11
| | | |
8.66
| | | |
0.98
| | | |
144.10
| | | |
Pb Concentrate
|
|
|
|
113.16
|
|
|
|
28.77
|
|
|
|
340.57
|
|
|
|
12.18
|
|
|
|
841.76
| | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
Following table presents average metal recoveries obtained during March
2018
|
|
|
|
| Average Recovery - March 1 - 31, 2018 |
|
| |
|
|
|
|
| WMT % |
|
|
|
| Zn% |
|
|
|
| Cu% |
|
|
|
| Pb% |
|
|
|
| Au% |
|
|
|
| Ag% | | | |
Zn Concentrate
|
|
|
|
|
6.3%
|
|
|
|
| 70.5% |
|
|
|
|
16.9%
|
|
|
|
|
14.1%
|
|
|
|
|
10.1%
|
|
|
|
|
23.3%
| | | |
Pb Concentrate
|
|
|
|
|
1.1%
|
|
|
|
|
2.5%
|
|
|
|
|
4.0%
|
|
|
|
| 28.3% |
|
|
|
|
7.5%
|
|
|
|
|
6.0%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Grant of Options
The Company has granted a total of 400,000 stock options to a Director
and a service provider under the terms of the Company’s stock option
plan. The stock options have a five-year term from the date of the grant
and are exercisable at a price of $0.73 per share.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based junior resource mining
company currently in pre-production at two Mexican gold, silver and base
metal mining projects and is advancing both towards commercial
production, Campo Morado in the coming months of 2018 and Tahuehueto in
early 2019. At the Campo Morado Mine in Guerrero, Mexico, Telson has
re-commenced mining and processing operations with pre-production from
mine development on a trial basis that commenced at an average 1,400
tonnes per day and is currently processing approximately 2,000 tonnes of
mineralized development material per day during the recommissioning
stage and intends to advance towards commercial production during 2018,
increasing towards full capacity of approximately 2,500 tonnes per day.
Telson's Tahuehueto Project, located in north-western Durango State,
Mexico is currently in pre-production at approximately 135 tonnes per
day utilizing a toll mill for processing and has entered a construction
phase with a timeline to be producing on site in its own mineral
processing plant capable of milling at least 1,000 tonnes per day in Q1,
2019. Regular metal concentrate delivery and sales are underway from
both projects.
Visit: www.telsonmining.com
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, P.Geol, President and Director
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. Data verification by Mr. Shearing includes personal
inspection of the Campo Morado mine site, reviewing mining facilities,
drill core, underground development and discussing work programs and
results with geology and mining personnel.
Cautionary Note Regarding Production Decisions and Forward-Looking
Statements
It should be noted that Telson has commenced pre-production mining at
Campo Morado without the benefit of pre-feasibility or feasibility
studies that outline mineral reserves.Furthermore, it is likely
that Telson will declare 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 will likely be 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 completed and relied upon to make
a production decision.Telson has completed a preliminary
economic assessment (“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).This will soon
be replaced by a pre-feasibility study (“PFS”) that will allow the
application of modifying factors to the mineral resources to allow a
portion of them to be converted to mineral reserves; and will support
the pre-production activities to bring the Campo Morado mine into
commercial production.
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
applicable Canadian securities laws. Forward Looking Information
includes, but is not limited 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, such as production
rates and increases; success of exploration, development and bulk sample
processing activities; timing for the restart of continuous mining
operations at the Campo Morado Mine, and timing for processing at its
own mineral processing 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
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 Campo
Morado Mine and the Tahuehueto Project can be achieved, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180418005480/en/
Contacts:
Telson Mining Corporation
Glen Sandwell, +1 604-684-8071
Corporate
Communications Manager
ir@telsonmining.com
Source: Telson Mining Corporation
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