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 provide the following update on the progress of underground
development at its Tahuehueto Mine development project.
Underground development is primarily focused on accessing the strongly
mineralized El Creston structure hosting multiple veins and its
sub-parallel El Perdido vein structure. The company has been steadily
advancing underground development to access these veins at three
different levels namely, Level 12 at 1553 elevation, Haulage Level at
1322 elevation and a new, Level 20, yet to be developed at 1232
elevation by advancing Level 20 access decline currently under
construction (View image at https://goo.gl/FfDWby).
The new Level 20 decline, initiated in the Haulage Level has advanced
approximately 120 meters and will, when completed over the coming weeks,
provide access to one of the richest ore shoots discovered to date at
Tahuehueto containing over 700,000 tonnes of ore as outlined in the
Company’s 2017 project Pre-Feasibility Study.
The Level 12 decline initiated from surface at 1553 m elevation with a 4
x 4.5 meters cross section has been extended 260 meters in length at
-15% and has reached and crossed its initial El Creston Target. This
development will allow for the Company to exploit the veins outlined
below, 60 meters vertically using cut and fill mining methods.
Multiple mineralized veins have been cut in Level 12 Decline as
follows, (View image at https://goo.gl/fQZY3U)
El Perdido Vein was crossed approximately 130 m from the portal
entrance displaying strong mineralization 4 meters in width with another
2 meters of brecciated stockwork mineralization.
A new vein was discovered and is named Enmedio Vein, located
between Perdido and Creston veins, about 150 meters from portal entrance
displaying 1.5 meters width of good mineralization.
The El Creston structure was intersected at approximately 215
meters extending over 25 meters containing a series of mineralized veins
and stockwork with the strongest two veins each about 4.5 meters in
width located at the footwall and hanging wall respectively. Both of
these very important veins are strongly mineralized.
Channel samples have been collected from all of these veins and are
currently being analyzed by an independent lab. Assay results will be
released when available.
The development teams are now advancing production levels and
pre-production drifts at Level 12 in both strike directions to the
northeast and southwest along both the footwall and hanging wall veins
in El Creston as well as the El Perdido vein. This development drifting
provides six new faces to advance development and pre-production mining.
Grade control is in place to ensure that ore mined with a quality over
10 g/t AuEq from these developments, is being sent for pre-production
processing to the Atocha Toll Mill. The ore below this quality is being
stored for future processing in the 1,000 tpd processing plant that is
currently under construction at Tahuehueto.
Antonio Berlanga, CEO, states “The development of these 6 production
stopes within the Level 12 decline, plus the additional 6 stopes that
will be developed soon from the Level 20 decline currently underway,
ensures the Tahuehueto Mine development provides access to at least the
first 2 years of ore production at the projected capacity of 1,000 tpd.
This development also ensures a steady supply of above 10 g/t AuEq ore
to be shipped to the Atocha Toll Mill to continue to generate sales of
produced zinc and lead concentrates containing significant gold and
silver content to be delivered to Trafigura under the Telson/Trafigura
Off-take loan agreement.
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. Effective May 15, 2018 Telson declared commercial
production at Campo Morado. Telson is currently producing zinc and lead
concentrates with gold, silver and copper as by-products, processing an
average of approximately 2,000+ tons per day through the Campo Morado
milling facilities.
Telson's 100% owned Tahuehueto Project, located in north-western Durango
State, Mexico is currently in construction development. Pre-production
commenced at Tahuehueto in August 2017 currently mining at a rate
averaging 170 tonnes per day during Sept 1st – 23rd 2018, shipping ore
to a third-party toll mill for processing. Management has a targeted
timeline at Tahuehueto to be producing with its own on-site mineral
processing plant, with a designed capacity of at least 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 at Tahuehueto, Telson ismining
reserves supported by a pre-feasibility published early 2017 while at
Campo Morado pre-production mining is proceeding without the benefit of
pre-feasibility or feasibility studies that outline mineral reserves and
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 Campo Morado 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/20181002005293/en/
Contacts:
For further information about Telson Mining Corporation, please contact:
Glen
Sandwell
Corporate Communications Manager
ir@telsonmining.com
Tel:
+1 (604) 684-8071
Source: Telson Mining Corporation
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