Vancouver, British Columbia / TheNewswire / August 14, 2017 - Telson Resources Inc. ("Telson" or the "Company") (TSX Venture - TSN.V) is pleased to announce that the second shipment of lead and zinc concentrates processed at the Atocha mineral processing plant (the "Atocha Mill") has been delivered to Mercuria Commodities Trading, S.A. de C.V. ("Mercuria") as per the concentrate purchasing arrangement first announced in the Company's news release of July 6, 2017.
Six concentrate transport trucks departed Atocha Mill site on Aug 11, 2017 carrying four loads of zinc concentrate, totaling approximately 129 dry tonnes and two loads of lead concentrate, totaling approximately 62 dry tonnes.
Pre-production concentrate delivered and/or, en-route to Mercuria as of Aug 11, 2017 total approximately 227.5 dry tonnes of zinc concentrate and 128.7 tonnes of lead concentrate. The accumulated average metallurgical balance of all pre-production processing is shown below,
The above metallurgical balance summary has been derived from daily continuous sampling and analysis of ore throughput, concentrate production and tailings material at the Atocha Mill site laboratory. The reader is cautioned that although the Atocha Mill laboratory is not considered a compliant laboratory under NI 43 101 guidelines, the sampling and analysis is considered standard procedure for the industry and is of sufficient quality and quantity to determine average assay results acceptable to Mercuria for preliminary invoicing of up to approximately 85% of the contained metals. Upon delivery of the concentrates to Mercuria's warehouse in Manzanillo, a fully independent third-party consulting laboratory, as well as Mercuria, thoroughly sample and analyse all the delivered concentrate in an industry standard monitored procedure. By comparing the assay results obtained at the Atocha Mill, Mercuria and the independent assay consultant, a fair assay grade, metal content and sale price is agreed to between the Company and Mercuria. When final assay results are fully determined and accepted by the parties, likely within the next two weeks, Telson will publicly disclose those concentrate grade results and agreed to sale prices.
"Pre-production processing at the Atocha Mill site is continually improving our recovery methods and procedures", states Antonio Berlanga, CEO of Telson, "We have achieved average recoveries from Tahuehueto ore of 83.5% gold, 89.3% silver, 86.1% lead and 85.4% zinc plus significantly better separation of zinc from our lead concentrates and overall higher concentrate grades then we experienced earlier this year in our original industrial scale bulk sample processed at the Andes Mill." (Please refer to news release dated February 23, 2017 for details of grades, recoveries and sale prices of concentrates produced from original industrial scale bulk sample.)
As of August 12, 2017, the Company has delivered approximately 4,910 tonnes of ore mined from the Level 10 ore chute to the Atocha Mill site and processed approximately 4,260 tonnes of ore through mill. A third concentrate delivery is expected to depart Atocha in the next several days upon completion of processing the remaining stockpiled ore at which time processing will be temporarily suspended until the Atocha ore stockpile is replenished. Telson currently has 1,700 tones of ore mined and stockpiled at Tahuehueto awaiting transport to the Atocha Mill. Ore processing at Atocha is anticipated to re-commence early September.
Telson Resources Inc. is a Canadian based resource development company advancing two gold, silver and base metal projects towards production over the coming months of 2017 and early 2018. Telson's Tahuehueto Project, located in north-western Durango State, Mexico and its recently acquired Campo Morado Mine in Guerrero, Mexico purchased from Nyrstar Mining are both polymetallic deposits containing significant gold, silver, lead, zinc and copper. Subject to securing funding, Telson plans to recommence mining operations at Campo Morado within 3 to 5 months while at the same time develop it's Tahuehueto Project through the mine construction phase with an anticipated timeline to be producing at the project site in its own mineral processing facility by the end of the first quarter of 2018 or earlier.
Qualified Person
This press release was prepared under the supervision and review of Ralph Shearing, P.Geol., President and Director of Telson Resources Inc., a Professional Geologist registered in Alberta as a member of the professional organization APEGA, and a Qualified Person as defined by NI 43-101.
