Vancouver, British Columbia, April 6, 2021
Telson Mining Corporation (“Telson” or the “Company” (TSX Venture Exchange-TSN, OTC Pink-SOHFF, Frankfurt-TSGN (formerly SQ82)) is pleased to provide shareholders the preliminary production results for the quarter ended March 31, 2021 (“Q1 2021”) of Campo Morado Mine located in state of Guerrero, Mexico.
Campo Morado operations during Q1 2021 have shown steady production averaging a throughput of 58.1 thousand tonnes of mineral processed per month, resulting in a total production for the quarter of 11,013 tonnes of zinc concentrate and 1,907 tonnes of lead concentrate. Production and sales key indicators such as head grade of the mineralized material processed, volume of payable metal and recoveries are presented below.
Estimated revenues for Q1 2021, net of all concentrate sale deductions such as treatment charges, penalties, etc., were approximately US$11.9M (final revenue figures are subject to review and agreement of final assay results), representing a 35% increase versus the previous quarter. C1 cash costs, all-in sustaining cost per pound and other operational financial details will be disclosed in the company’s upcoming quarterly financial statements which are due to be filed on or before May 31, 2021.
Ralph Shearing, Telson CEO and President, stated “These strong first quarter results continue to reflect our steady progression of improving the throughput and recoveries at Campo Morado. To this end, management intends to initiate a rigorous metallurgical testing program to advance through second phase testing the Leachox Process of Maelgwyn Mineral Services and the Albion Process of Core Group, both of which returned positive test results in first phase testing. This metallurgical testing program will also study the ability to increase base metal recoveries at microfine grinding with flotation recovery using Imhoflot Flotation and Jamison Cell flotation technologies both designed for such purposes. We are confident that additional recovery improvements are available utilizing these exciting modern technologies which, if successful can provide increased revenue streams.”
Telson Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver and base metal mining projects.
Telson's Tahuehueto mining project, located in north-western Durango State, Mexico is working to finish construction of the processing plant and related assets to produce gold, silver, lead, and zinc in concentrates within its own on-site mineral processing facility, with a designed capacity of at least 1,000 tonnes per day. The Company is targeting completion of construction during 2021, six to eight months after closing its recently announced US$25 million funding package (see press release dated February 23, 2021)
Campo Morado is a polymetallic base metal mine with mining and milling equipment currently producing at an average of approximately 2,150 tonnes per day. Four months after purchasing Campo Morado, Telson brought the mine back into operation initiating preproduction in October 2017 and declared commercial production in May 2018, operating the mine continuously for 22 months until August 2019 when the project was put on care and maintenance. Telson brought the mine out of care and maintenance and reinitiated mining and milling operations during January 2020.
This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President. CEO 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.
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, President and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Telson 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).
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 the planned recommencement of mining operations at Campo Morado; and other possible events, conditions or financial performance that are 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; that recommencement of operations at Campo Morado will proceed as planned; the continuity of the price of gold 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.
For further information about Telson Mining Corporation, please contact:
Corporate Communications Manager
Tel: +1 (604) 684-8071