SOHFF - Telson Reports Q3 2020 Production Results for Campo Morado Mine
(TheNewswire)
Vancouver, British Columbia - TheNewswire - Oct 15, 2020
Telson Mining Corporation (" Telson " or the" Company " (TSX Venture Exchange-TSN, OTC Pink-SOHFF,Frankfurt-TSGN (formerly SQ82)) (TSXV:TSN) (OTC:SOHFF) is pleased to provide shareholders thepreliminary production results for the third quarter ("Q3")2020 of Campo Morado Mine located in state of Guerrero, Mexico.
Campo Morado operations during Q3 2020 have shown asteady increase in production with September throughput productionincreasing to 52,352 tonnes of mineralized material being processedresulting in 3,123 tonnes of zinc concentrate and 671 tonnes of leadconcentrate for the month. Head grade of the mineralized materialprocessed, concentrate grades and recoveries are presented in tablebelow.
July and August production were negatively impacted asa result of SAG mill liner failures which caused excessive milldowntime. Management took delivery of new SAG mill liners near the endof August, allowing the SAG mill design to revert to a previous andhistorically most efficient design at the end of August. The newliner design was installed and operational on September 6 and the SAGmill has successfully operated continuously, averaging 2,181 tonnesper day, over the 24 operational days during the month ofSeptember.
Preliminary realized revenues for Q3 2020, net of allconcentrate sale deductions such as treatment charges, penalties etc.,were approximately US$5,679,000. (final sales numbers are subject to reviewand agreement of final assay results) . C1 cashcosts, all-in sustaining cost per pound and other operationalfinancial details will be disclosed in the company's upcoming Q3 2020quarterly report which is due to be filed on or before November 30,2020.
"After losing production as a result of COVID-19pandemic government mandatory shut down earlier this year and dealingwith operational difficulties largely related to the SAG millfailures, with the new liner design fully installed and performing above expectations, we now have Campo Morado Mine operating at fullcapacity and achieved a very good month of production inSeptember", states Ralph Shearing, president and CEO of Telson,"October is underway and looks like we could see similarproduction results this month with the mill continuing to performperfectly."
As per the Company's news release dated June 16, 2020 , the Company has closed its debt settlement with AccendoBanco, S.A. Institucion de Banco Multiple ("Accendo").Accendo has funded the payout of $659,758 of debt related toTahuehueto mining project's suppliers and accordingly, the Company hasissued to Accendo 7,330,651 shares at a deemed price of $0.09 pershare.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based miningcompany with two 100% owned Mexican gold, silver and base metal miningprojects.
Telson's Tahuehueto mining project, located innorth-western Durango State, Mexico is currently under constructionhaving advanced to approximately 70% completion and waiting for finalfunding to finish construction of the processing plant and relatedassets to produce gold, silver, lead and zinc in concentrates withinits own on-site mineral processing facility, with a designed capacityof at least 1,000 tonnes per day. The Company is targeting completionof construction during 2021, six to eight months after securing finalfunding.
Campo Morado is a polymetallic base metal mine withmining and milling equipment capable of producing up to 2,500 tonnesper day. Four months after purchasing Campo Morado, Telson brought themine back into operation initiating preproduction in October 2017 anddeclared commercial production in May 2018, operating the minecontinuously for 22 months until August 2019 when the project was puton care and maintenance as a result of declining zinc prices andcommunity issues. With improving current conditions Telson justbrought the mine out of care and maintenance and reinitiated miningand milling operations during January 2020.
Qualified Persons
This press release was prepared under the supervision and review ofRalph Shearing, P.Geol., President and Director of Telson MiningCorporation, a Professional Geologist registered in Alberta as amember of the professional association APEGA, and a Qualified Personas defined by NI 43-101.
Visit: www.telsonmining.com
On Behalf of the Board ofDirectors
(signed) "RalphShearing"
Ralph Shearing, President andDirector
Cautionary Note Regarding ProductionDecisions and Forward-Looking Statements
It should be noted that Telsondeclared commercial production at Campo Morado prior to completing afeasibility study of mineral reserves demonstrating economic andtechnical viability. Accordingly, readers should be cautioned thatTelson's production decision has been made without a comprehensivefeasibility study of established reserves such that there is greaterrisk and uncertainty as to future economic results from the CampoMorado mine and a higher technical risk of failure than would be thecase if a feasibility study was completed and relied upon to make aproduction decision. Telson has completed a preliminary economicassessment ("PEA") mining study on the Campo Morado minethat provides a conceptual life of mine plan and a preliminaryeconomic analysis based on the previously identified mineral resources(see News Release dated November 8, 2017 and April 4,2018).
Statements contained in this newsrelease that are not historical facts are "forward-lookinginformation" or "forward-looking statements"(collectively, "Forward-Looking Information") within themeaning of applicable Canadian securities laws. Forward LookingInformation includes, but is not limited to, disclosure regarding theplanned recommencement of mining operations at Campo Morado; and otherpossible events, conditions or financial performance that are based onassumptions 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 forprocessing at its own mineral processing facility on the Tahuehuetoproject site. In certain cases, Forward-Looking Information can beidentified by the use of words and phrases such as "plans","expects", "scheduled", "estimates","forecasts", "intends", "anticipates" orvariations of such words and phrases. In preparing the Forward-LookingInformation in this news release, the Company has applied severalmaterial assumptions, including, but not limited to, that the currentexploration, development, environmental and other objectivesconcerning the Campo Morado Mine and the Tahuehueto Project can beachieved; that recommencement of operations at Campo Morado willproceed as planned; the continuity of the price of gold and othermetals, 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 differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurancethat Forward-Looking Information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on Forward-Looking Information. Except as required bylaw, the Company does not assume any obligation to release publiclyany revisions to Forward-Looking Information contained in this newsrelease to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.
Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
For further information about TelsonMining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
ir@telsonmining.com
Tel: +1 (604) 684-8071
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