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Telson Mining Provides Update for Activities at Campo Morado Mine

Telson Mining Corporation ("Telson" or the "Company") is pleased to present the following update for activities at its 100% owned Campo Morado mine:

  • Total mill throughput in Q2 of 162.5kt, a 9.3% increase from Q1
  • 11.9 kdmt of zinc concentrate in Q2. 45.1% increase from Q1
  • 1.9 kdmt of lead concentrate in Q2. 35.7% increase from Q1
  • 8.6 kt of zinc in the zinc concentrate. 53.6% increase from Q1
  • 0.6 kt of lead in the lead concentrate. 100.0% increase from Q1




Increase (%)

Processed tons (kt)




Zn concentrate (kdmt)




Pb concentrate (kdmt)




Zn metal content (kt)




Pb metal content (kt)




Since Telson declared commercial production as of May 15, 2018 mining and milling operations at Campo Morado have run smoothly and continuously while production is steadily increasing towards management's targets.

Underground bulk mining methods have commenced and with the delivery of three recently purchased underground low profile 30 tonne dump trucks, which were fully paid for with cash generated from concentrate sales, Telson is increasing mill throughput past its current processing rate of approximately 2,200 tonnes per day. The Company intends to increase production towards 2,500 tonnes per day over the next several weeks and with some planned modifications to the crushing circuit intends to increase mill throughput past 2,500 tonnes per day, hoping to achieve up to 3,000 tonnes per day by year end 2018.

Since commencement of commercial production on May 15, 2018 through to July 30th, 2018 the Campo Morado mill has produced approximately 9,383 tonnes of zinc concentrates and 1,612 tonnes of lead concentrates processing approximately 124,482 tonnes of mineralized material from the El Largo zone. During this period average grades of concentrate produced were; Zinc Concentrate - 44.5% zinc, 410 g/t silver, 1.25 g/t gold and Lead Concentrate - 29% lead, 709 g/t silver, 6.26 g/t gold. Average recoveries achieved were 73.3% zinc, 31.2% lead, 32% silver and 18% gold.

Underground development work during Q2 advanced a total of 1,088 meters, 710 meters (6x5m) in mineralized material and 378 meter (5x5m) of access development in waste rock. This development includes advancing an incline from the El Largo Zone towards the Naranjo Zone, which has progressed to within 20 meters of the Naranjo Zone. When Naranjo has been reached, a portal will be developed at Naranjo to access the surface after which all production from El Largo, Naranjo and Fish Zones will be transported on surface from the new portal reducing haulage time and trucking costs. The Company has also dewatered the Fish Zone, adjacent to the El Largo Zone, and is preparing that zone for production.

Future Plans and Initiatives

Telson is planning several initiatives to improve the mill processing plant's production and recoveries.

  • The first initiative will be to purchase and install Jameson Flotation Cells into the mill process circuit to increase the zinc recovery and increase the zinc concentrate grades. Previous successful testing of Jameson Flotation technology in Campo Morado has demonstrated significant improvements in concentrate grades and metal recoveries.
  • The second initiative will demonstrate the viability of Glencore Technology's Albion Process to potentially increase the recovery of precious metals, (gold and silver). The Company intends to provide Glencore Technology with bulk samples of Campo Morado mineralization for Albion process testing, and with positive results, Telson intends to engage Glencore Technology to initiate technical studies for the design and build of the Albion Process equipment for purchase and installation at the Campo Morado Mine. There are four Albion Process™ plants currently in operation with dramatic increases in precious metal recoveries from refractory ore in all existing Albion Process plants, from previous recovery percentages in the low 20's using conventional milling to more than 90% in some cases using Albion Process, (please visit the following web link for more information Telson is targeting for Glencore Technologies to complete testing and have design and costing completed by end of 2018. With successful initial testing and design work completed and subject to securing additional construction capital, Telson is targeting late 2019 to complete installation and commence using Glencore's Albion Process with the intent to markedly increase precious metal recoveries and thereby profitability at Campo Morado. Glencore's Albion Process has also proven to markedly improve base metal recoveries from several mines currently processing with this new technology which could also benefit production at Campo Morado.

"Management is efficiently implementing many improvements at Campo Morado, both to underground mining and mill processing which are substantially reducing operating costs. Equally important are managements plans to increase base metal recoveries and concentrate grades as well as to potentially significantly increase precious metal recoveries with new technologies," states Antonio Berlanga, CEO. "Our well-structured improvements that have been and are currently being implemented at the Campo Morado Mine are increasing sales and decreasing operating costs in the short-term, but more importantly if Albion Process Technology testing proves successful, we plan to transform Campo Morado into a predominately precious metal producer in the mid-term."

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