VANCOUVER, British Columbia -- (Business Wire)
Telson Mining Corporation (“Telson” or the “Company”) (TSX-V – TSN, OTC
Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) provides summary of Q2
2018 financial report.
On Wednesday, August 29, 2018, the Company filed its condensed interim
consolidated financial statements for the three and six months ended
June 30, 2018 and 2017 (“Q2 Quarterly Report”). The Q2 Quarterly Report
presented financial information for April, May and June 2018, that
included 45 days of pre-production and 45 days of commercial production
at the Campo Morado mine. Telson declared commercial production at Campo
Morado effective May 15, 2018 (see news release dated May
23, 2018).
Telson advises that concentrate cash sale value realized from
pre-production under International Financial Reporting Standards
(“IFRS”) are not accounted as revenue on the condensed interim
consolidated financial statement of loss, instead these are capitalized
net of production costs and development expenses and presented as
mineral interest and development assets upon reaching commercial
production. Accordingly, Telson capitalized a net profit of
approximately C$7.3 million for Campo Morado as mineral interest and
development assets during the pre-production period from Jan 1 to May
15, 2018.
During the last 45 days of the quarter or since the start of commercial
production on May 15, 2018 to June 30, 2018, the Company recorded a
total amount of C$987,055 as mine operating earnings which is presented
on the Q2 Quarterly Report. Mining operations at Campo Morado are
currently processing at a rate of approximately 2,000 tonnes per day
which management intends to increase to 2,500 in the near future and
increase towards 3,000 by the end of this year.
Antonio Berlanga, CEO states, “Our outstanding Campo Morado operations
team have performed beyond expectations and continue to work diligently
to improve the operational results at Campo Morado. Pre-production and
more recently, commercial production, has funded the acquisition of
surface and underground equipment as well as processing plant equipment,
all of which are allowing a steady increase in production rates and
corresponding concentrate sales. Telson will continue to invest in Campo
Morado to increase production capacity, mill recoveries and quality of
concentrates to maximize the mine’s profitability.”
Telson’s Campo Morado Mine has achieved direct site costs for mining,
milling and administration during Q2 of approximately US$56.6, US$51.6
and US$51.8 per tonne respectively for, April, May and June. These
current direct site costs are approximately 36% lower than the estimated
direct site costs of US$72.26 per tonne used for the same categories in
Telson’s recently published independent Preliminary Economic Assessment
and approximately 40% lower than the previous operator’s last year of
production during 2014.
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 commercial production at its 100% owned Campo
Morado Mine in Guerrero, Mexico. Telson acquired Campo Morado in June
2017 and re-commenced mining and processing operations in October 2017
with development and pre-production on a trial basis that started at an
average processing rate of 1,400 tonnes per day and effective May 15,
2018 declared commercial production based on operating for at least 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 development and pre-production at a rate of
approximately 100 tonnes per day using a third-party toll mill for
processing. Tahuehueto Project has also entered a construction phase
with a timeline to be producing on its own mineral processing plant,
with a designed capacity of 1,000 tonnes per day, during the first
quarter of 2019. Regular metal concentrate deliveries and sales are well
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/20180905005329/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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