Telson Mining Corporation is a Canadian-based junior resource company that until recently, has been focused on the development towards production during 2017 of its advanced stage Tahuehueto gold-silver project in north-western Durango State, Mexico.
On April 27, 2017 Telson Mining Corporation announced that it had signed an agreement with Nyrstar Mining Ltd to acquire 100% of the Campo Morado mine located in Guerrero State, Mexico.
Upon closing the Campo Morado acquisition agreement with Nyrstar on June 14, 2017, Telson added a very significant asset containing 17 million tons of resources in all categories to the company’s already impressive advanced stage Tahuehueto project asset.
Campo Morado, Guerrero State
Campo Morado is an underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes of ore per day. There are over 700 exploration diamond drill holes in place which have outlined six mineralized bodies containing approximately 16.6 million tons of measured and indicated resources grading 4.01% zinc, 0.80% copper, 0.93% lead, 123 g/t Ag and 1.70 g/t Au plus, an additional 1 million tons of inferred mineral resources as calculated and released by Titley Consulting Ltd. in November 2017. The Campo Morado Mine was commissioned and commenced operations in 2009 by Farallon Resources. Nyrstar purchased Farallon Resources in a friendly takeover in 2010 for the equivalent of approximately C$420 million thereby gaining control of Campo Morado. Nyrstar produced up to the end of 2014 when mining operations were suspended in January 2015 and the mine was placed on care and maintenance due to deteriorating industry conditions. During 2014, the mine processed 657,000 tons of ore with an average grade of 1.2g/t Au, 115.7 g/t Ag, 4.6% Zn, 1.2% Cu and 0.9% Pb. The concentrates produced in the same year were 48,000 tons of Zn concentrate at 47% Zn and 29,000 tons of Cu concentrate at 13%, including 6,000 oz of Au and 0.9 million oz of Ag.
On April 27, 2017 Telson signed an agreement with Nyrstar to acquire 100% of the Campo Morado mine. On September 18, 2017, Telson announced that it had secured the funding required to initiate the restart of continuous mining operations at the Campo Morado Mine and on October 23, 2017 the Company announced the restart of full scale mining and mill processing on a pre-production basis from mine development at a starting rate of 1,400 tonnes per day. On May 23, 2017 the Company was pleased to announce the start of commercial production with the aim of increasing throughput at the mill to its 2,500 tonne per day capacity by Q3/Q4 of 2018. Management is also investigating new technologies to improve the precious metal recoveries.
Tahuehueto, Northwestern Durango State
Telson Mining Corporation controls 100% of the Tahuehueto Project through a 99%-owned subsidiary, and acquired the district-scale property for its potential to host multiple deposits and discoveries. The project lies within the Sierra Madre mineral belt, which hosts most of Mexico’s producing mines and active exploration and development projects, and has geological similarities to epithermal deposits being exploited in nearby mining districts. In addition to vast geological potential, Mexico offers the advantages of social and political stability and a favorable investment climate.
This 7,492-hectare property covers at least 12 mineralized zones hosted within a structurally controlled epithermal system that has been traced for more than 6 km. Exploration programs have defined significant gold-silver and base metal reserves and resources along the explored structural zone. Mineralization of gold, silver, copper, lead, and zinc has been outlined within reserves and resources along the length of the explored structural zone which have allowed Telson to determine excellent economics of a potential mining operation at Tahuehueto.
Significant exploration upside potential exists both on the existing explored structures that contain current reserves and resources along strike and down dip of the known mineralization which is open in all directions as well as within numerous other mineralized but unexplored structures known to occur within the core 700 ha concession area. Further exploration potential exists outside of the core area where Telson controls an additional 6700 hectares of concessions. Telson’s concessions cover about 80% of the mineralized Tahuehueto District, and there is a significant amount of prospective ground within this government recognized geological Tahuehueto District.
Telson’s plan is to advance into production with the reserves outlined in the core 500 ha area, continue to expand the reserves on structures where there are defined reserves and resources, and start to look at our less explored structures within this core 500 ha area. A Greenfields type of exploration program will also be designed and implemented after production is achieved to explore the regional District potential within Telson’s concession area.