Telson Mining Corporation ("Telson” or the "Company”) (TSX-V – TSN, OTC
Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) is pleased to provide
the following corporate update.
Several scheduled upgrades were recently made in the mill processing
plant installations, including among others: i) changing of ball mill
liners with newly designed liners that allow for the replacement of the
past 5" ball that were being used, with 3” balls, which increases the
life of the liners; ii) conducting a review of the primary jaw crusher
and initiation of adaptations for the installation of a secondary cone
crusher, which will reduce the size of the ore feed to the mill from -7"
to -2"; and iii) revising the cyclones classification system to reduce
the circulating load in grinding. These changes are all aimed at
increasing the grinding capacity of the mill to facilitate reaching
managements target of processing up to 3,000 tpd by the end of 2018.
We also conducted metallurgical testing obtaining very favorable results
for increasing the quality of zinc concentrates and as a result, will be
implementing an additional cleaning of the zinc concentrate within the
mill to increase the quality of zinc concentrates on an ongoing basis.
Sr. Jose Antonio Berlanga, Telson’s Chief Executive Officer stated, "The
mill upgrades outlined above are a small part of management's continued
mine improvement plans at Campo Morado and are designed to achieve goals
of planned increases in production along with further reductions to
all-in operating cost.”
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 ("tpd”) and declared commercial
production May 15, 2018. Production rate has now reached and surpassed
an average of 2,000 tpd, with a short-term target rate of 2,500 tpd,
increasing towards 3,000 tpd near year end 2018.
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
On behalf of the board of directors
(signed) "Ralph Shearing”
Ralph Shearing, P.Geol, President and Director
Cautionary Note Regarding Production Decisions and Forward-Looking
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.
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).
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.
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