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 report concluding a renewable power purchase agreement “Green
Energy Agreement” for Campo Morado mine.
Highlights
-
A 10-year term take-or-pay purchase agreement for renewable sources
generated electrical energy at a cost of MXN$1.10 per kilowatt hour
(kWh) or equivalent to CAD$0.72 per kWh at current exchange rates
-
Green Energy Agreement comes into effect no later than June 2019
-
Telson committed to 42.00 GWh per year
-
Under the Green Energy Agreement, the cost per kWh is approximately
32% lower than the last nine-month average price paid and
approximately 54% lower than September’s kWh price alone
-
Estimated operating cost savings of approximately CAD$2 million during
the first-year equating to an estimated 3.5% decrease in overall
current operating costs
-
Telson will comply with the latest local regulatory requirements of
renewable energy use
Telson has concluded a renewable power purchase agreement “Green Energy
Agreement” with Energia Solar Alaia IV, S.A.P.I de C. V. (“Energia
Solar”), as part of the Company’s ongoing efforts to reduce its
environmental footprint and to reduce mine operating costs over the long
term.
Under the terms of the Green Energy Agreement, the Company is committed
to purchase 42.00 GWh of electrical power per year from Energia Solar at
an inflation-indexed fixed price of MXN$1.1 kWh for a period of ten
years. The ten-year term agreement can be extended by mutual agreement
and the electrical power and rates comes into effect no later than June
1, 2019 or upon completion of the construction of Energia Solar’s
renewable energy plant.
Over the past nine months of operations at Campo Morado mine, the power
consumption purchased from Comision Federal de Electricidad (“CFE”) was
on average 32% higher than the costs per kWh negotiated under the Green
Energy Agreement. Likewise, compared to September’s purchase price the
cost per kWh is about 54% lower than the CFE’s escalating costs.
“The renewable power purchase agreement with Energia Solar provides
Telson with a steady supply of renewable source generated power at an
inflation-indexed fixed price that will significantly reduce
environmental footprint and reduce operating costs and future
profitability. Additionally, this agreement satisfies local regulations
that require Campo Morado mine to use a minimum of 25% green generated
energy.” states Antonio Berlanga, CEO. “It is also a significant step
forward for Telson to do its part in the world-wide battle against
global warming”
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
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 under development. Pre-production
commenced at Tahuehueto in August 2017, currently mining at a rate
around 200 tonnes per day and 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 is mining 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/20181031005080/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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