VANCOUVER, British Columbia -- (Business Wire)
Telson Mining Corporation (“Telson” or the “Company”) (TSX-V – TSN, OTC
Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) is pleased to present
the following update for activities at its 100% owned Campo Morado mine:
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Total mill throughput in Q2 of 162.5kt, a 9.3% increase from Q1
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11.9 kdmt of zinc concentrate in Q2. 45.1% increase from Q1
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1.9 kdmt of lead concentrate in Q2. 35.7% increase from Q1
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8.6 kt of zinc in the zinc concentrate. 53.6% increase from Q1
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0.6 kt of lead in the lead concentrate. 100.0% increase from Q1
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Item |
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| Q1 |
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| Q2 |
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| Increase (%) |
Processed tons (kt)
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148.7
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162.5
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9.3%
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Zn concentrate (kdmt)
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8.2
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11.9
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45.1%
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Pb concentrate (kdmt)
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1.4
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1.9
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35.7%
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Zn metal content (kt)
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5.6
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8.6
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53.6%
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Pb metal content (kt)
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0.3
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0.6
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100.0%
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Since Telson declared commercial production as of May 15, 2018 mining
and milling operations at Campo Morado have run smoothly and
continuously while production is steadily increasing towards
management's targets.
Underground bulk mining methods have commenced and with the delivery of
three recently purchased underground low profile 30 tonne dump trucks,
which were fully paid for with cash generated from concentrate sales,
Telson is increasing mill throughput past its current processing rate of
approximately 2,200 tonnes per day. The Company intends to increase
production towards 2,500 tonnes per day over the next several weeks and
with some planned modifications to the crushing circuit intends to
increase mill throughput past 2,500 tonnes per day, hoping to achieve up
to 3,000 tonnes per day by year end 2018.
Since commencement of commercial production on May 15, 2018 through to
July 30th, 2018 the Campo Morado mill has produced approximately 9,383
tonnes of zinc concentrates and 1,612 tonnes of lead concentrates
processing approximately 124,482 tonnes of mineralized material from the
El Largo zone. During this period average grades of concentrate produced
were; Zinc Concentrate - 44.5% zinc, 410 g/t silver, 1.25 g/t gold and
Lead Concentrate – 29% lead, 709 g/t silver, 6.26 g/t gold. Average
recoveries achieved were 73.3% zinc, 31.2% lead, 32% silver and 18% gold.
Underground development work during Q2 advanced a total of 1,088 meters,
710 meters (6x5m) in mineralized material and 378 meter (5x5m) of access
development in waste rock. This development includes advancing an
incline from the El Largo Zone towards the Naranjo Zone, which has
progressed to within 20 meters of the Naranjo Zone. When Naranjo has
been reached, a portal will be developed at Naranjo to access the
surface after which all production from El Largo, Naranjo and Fish Zones
will be transported on surface from the new portal reducing haulage time
and trucking costs. The Company has also dewatered the Fish Zone,
adjacent to the El Largo Zone, and is preparing that zone for production.
Future Plans and Initiatives
Telson is planning several initiatives to improve the mill processing
plant’s production and recoveries.
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The first initiative will be to purchase and install Jameson Flotation
Cells into the mill process circuit to increase the zinc recovery and
increase the zinc concentrate grades. Previous successful testing of
Jameson Flotation technology in Campo Morado has demonstrated
significant improvements in concentrate grades and metal recoveries.
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The second initiative will demonstrate the viability of Glencore
Technology’s Albion Process to potentially increase the recovery of
precious metals, (gold and silver). The Company intends to provide
Glencore Technology with bulk samples of Campo Morado mineralization
for Albion process testing, and with positive results, Telson intends
to engage Glencore Technology to initiate technical studies for the
design and build of the Albion Process equipment for purchase and
installation at the Campo Morado Mine. There are four Albion Process™
plants currently in operation with dramatic increases in precious
metal recoveries from refractory ore in all existing Albion Process
plants, from previous recovery percentages in the low 20’s using
conventional milling to more than 90% in some cases using Albion
Process, (please visit the following web link for more information http://www.albionprocess.com/en/Pages/home.aspx)
Telson is targeting for Glencore Technologies to complete testing and
have design and costing completed by end of 2018. With successful
initial testing and design work completed and subject to securing
additional construction capital, Telson is targeting late 2019 to
complete installation and commence using Glencore’s Albion Process
with the intent to markedly increase precious metal recoveries and
thereby profitability at Campo Morado. Glencore’s Albion Process has
also proven to markedly improve base metal recoveries from several
mines currently processing with this new technology which could also
benefit production at Campo Morado.
“Management is efficiently implementing many improvements at Campo
Morado, both to underground mining and mill processing which are
substantially reducing operating costs. Equally important are
managements plans to increase base metal recoveries and concentrate
grades as well as to potentially significantly increase precious metal
recoveries with new technologies,” states Antonio Berlanga, CEO. “Our
well-structured improvements that have been and are currently being
implemented at the Campo Morado Mine are increasing sales and decreasing
operating costs in the short-term, but more importantly if Albion
Process Technology testing proves successful, we plan to transform Campo
Morado into a predominately precious metal producer in the mid-term.”
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 declared commercial production as of
May 15th, 2018. Currently the Campo Morado mine is processing
approximately 2,200 tonnes per day through the milling facilities.
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 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 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/20180802005190/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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