Company Website:
http://www.telsonresources.com
VANCOUVER, British Columbia -- (Business Wire)
Telson Mining Corporation (“Telson” or the “Company”) (TSX Venture –
TSN.V, OTCBB – SOHFF, Frankfurt: TSGN (formerly SQ82)) By news release
disseminated earlier today (the “Production News Release”), Telson
announced the start of commercial production at its 100% owned Campo
Morado Mine ("Campo Morado") located in Guerrero State, Mexico.
In the Production News Release Telson stated amongst other production
data:
Campo Morado Production Milestones
-
Telson generates US7.7M Cash Flow in Final Month and a Half (April 1
to May 15, 2018) of pre-production.
-
We generated approximately US$7.7M in cash flow during the three
months of Q1, and increased to US$5.2M in April alone, which based on
costs of approximately US$3.5M resulted in net cash flow for the month
of US$1.7 million.
-
Concentrate pre-production April 1 – May 15, 2018, management’s
estimated 100% concentrate sale value for 45 days ending May 15, 2018
(start of commercial production) – US $7.7 million.
April 1 –
30th – US $5.2 million
May 1 – 15th – US $2.5 million
On further review of the pre-filed Production News Release, this morning
the Investment Industry Regulatory Organization of Canada (“IIROC”)
determined that additional clarification was required and halted trading
in the Company’s shares.
We wish to clarify that the term cash flow as used in the Production
News Release is the cash receipts for concentrates delivered to the
buyer of such concentrates. It is cash receipts and does not include
cash payments for goods, services or payments to or on behalf of
employees or any expenditures associated with the costs of production.
The costs of production are calculated at month end. As stated in the
Production News Release, in April 2018, Telson generated cash from the
sales of concentrates of US$5.2M with costs of production of US$3.5M for
net cash of US$1.7M. For the first 15 days of May (ending on the date of
the commencement of commercial production) Telson generated cash
receipts from the sales of concentrates of US$2.5M, however has not
determined the costs of production for that interim period.
Now that Telson has declared commercial production cash receipts from
sales of concentrate will be reported as revenues and Telson will be in
a position to report net income/loss on a quarterly basis.
Telson reiterates that all of the figures in the Production News Release
are correct.
About Telson Mining Corporation
Telson Mining Corporation is a
Canadian based mining company with two Mexican gold, silver and base
metal mining projects.
Telson is currently in production at its 100% owned Campo Morado Mine in
Guerrero, Mexico. Telson acquired Campo Morado in June 2017,
re-commenced mining and processing operations in October 2017 with
pre-production from mine development on a trial basis that commenced at
an average 1,400 tonnes per day and has just declared commercial
production based on operating for 60 consecutive days at 75% of the
Campo Morado mill’s nameplate capacity of 2,500 tonnes per day.
Telson's Tahuehueto Project, located in north-western Durango State,
Mexico is currently in pre-production at approximately 100 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 Resources Inc., 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 declared 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 has been
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.
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 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, zinc, lead 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/20180523006402/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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