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Telson Mining says toll milling going better than expected in Mexico

Telson said it expects to process at least 5,000 tonnes of pre-production Tahuehueto mine ore during this 11th campaign

Telson Mining Corp. -
It produced 82.9 tonnes of gold rich lead concentrate grading 101 grams per tonne

Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) has reported better than expected recoveries from third party toll milling in Mexico.

In a statement on Tuesday, Telson said it expects that the Atocha mill will process at least 5,000 tonnes of pre-production Tahuehueto mine ore during this 11th campaign of toll milling. So far it has processed 2,166 tonnes in six days up to August 25.

READ: Telson Mining set for pre-production toll milling as flagship Mexico mine is now 70% complete

The company said average head grades were 5.32 grams per ton (g/t) gold, 38.03 g/t silver, 1.71% lead, 3.20% zinc and 0.24% copper. It added that the mill produced 82.9 tonnes of gold rich lead concentrate grading 101 grams of gold per tonne, 702.44 grams of silver per tonne, 38.8% lead and 5.29% copper.

"Management is delighted to report that Telson's 11th Tahuehueto toll milling campaign is proceeding better than expected with just under half of the anticipated 5,000+ tonnes of ore processed to date," said Telson CEO, Antonio Berlanga.

"Average metal recoveries achieved in the first half of the campaign stand at 86.29% gold, 85.60% silver, 86.80% lead, 76.93% zinc and 84.21% copper. These recoveries are a significant improvement over previously processed toll mill campaigns," he added.

"Furthermore, this processing has produced high quality, precious metal rich concentrates with the lead concentrate containing an average of 101 grams gold/tonne and 702 grams silver/tonne."

The group said it aimed to continue to deliver Tahuehueto ore to Atocha throughout the rest of 2019 which should allow it to process at least one campaign of between 3,000 to 5,000 tonnes on a monthly basis until it has completed construction of its on-site 1,000 tonne per day (t/d) mining facility, earmarked near the end of the first quarter of 2020.

As reported last week, proceeds from the sale of the resultant concentrates from toll milling have helped fund construction of Telson's flagship Tahuehueto mine, which is now around 70% complete.

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Price: 0.11 CAD

Market: TSX-V
Market Cap: $15.35 m

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