Telson Mining Corporation

We at Telson believe we have a mission to create enduring, sustainable value for all our shareholders, employees and the communities where we work.

Campo MoradoCampo Morado is an underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes of ore per day. To the end of 2014 there had been 3,036 exploration diamond drill holes totalling 577,155 metres identifying at least 7 mineralized zones, containing approximately 14.7 million tons of measured and indicated resources grading 3.76% zinc, 0.88% copper, 0.81% lead, 106 g/t Ag and 1.34 g/t Au plus an additional 2.15 million tons of inferred mineral resources as calculated and released by Nyrstar in early 2015. The Campo Morado Mine was commissioned and commenced operations in 2009. 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 June 13, 2017, Telson Mining acquired 100% of the Campo Morado Mine from Nyrstar, which included the underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes or ore per day, as well as six mining concessions occupying approximately 12,045 hectares in the state of Guerrero, Mexico.

After the acquisition of the Campo Morado Mine, the Company restarted mining operations on a pre-production and test milling basis during the month of October 2017.  Effective May 15, 2018 the Company declared commercial production.

During fiscal year 2018, the Campo Morado Mine produced 39,363 tonnes of zinc concentrate with average grades of 44.87% zinc, 1.40 g/t gold, 409 g/t silver, and sold 39,332 tonnes of zinc concentrate with average grades of 41.9% zinc, 1.29 g/t gold, 367.9 g/t silver for total sales of US$35,376,039. In addition, it produced 7,311 tonnes of lead concentrate grading 26.24% lead, 2.60% copper, 6.31 g/t gold, 734 g/t silver and sold 7,566 tonnes of lead concentrate for total sales of US$5,605,904.

On April 1, 2019 in Telson’s ongoing quest to maximize the returns from Campo Morado production, the Company has recently become aware of and had discussion with, senior members of Maelgwyn Mineral Services. Maelgwyn conducted preliminary testing of samples from Campo Morado in 2013 for Nystar, the project’s former owner. The samples were from 2013 process tailings, presumably G9 Zone, as well as fresh mineralization from the Reforma deposit, a future production zone.

The Leachox testing indicated that substantial increases in precious metal recoveries could be available at Campo Morado using Maelgwyn Leachox Process. Very positive results were obtained in the 2013 testing for both of the samples submitted with a maximum recovery of 65% gold and 75% silver at a grind size of 20 microns from the process tailings sample and a maximum recovery of 45% gold and 81% silver at a grind of 40 microns from the Reforma deposit sample. The report stated, “It should be noted that the above test work was performed at a scouting level only and higher recoveries would probably be achieved with optimisation work”.

“The Leachox precious metal recovery testing conducted by Maelgwyn demonstrates that significant increases up to 65% gold and 81% silver are possible at Campo Morado” states Antonio Berlanga, Telsons CEO. “Should additional planned Leachox testing of optimization work to confirm recoveries, ultimate best grind size and reagent additions show a path forward to a commercial installation of this technology, we could improve recoveries from current levels of gold at 15-20% and silver 30-40%, which would significantly increase the mines profitability by increasing the ounces of gold and silver produced at Campo Morado.”

On August 14, 2019, management and its Board of Directors made the decision to indefinitely curtail operations at the mine and place it under care and maintenance.  A number of factors went into this difficult decision not the least of which was the substantial decline in zinc prices with negatively affect the mine's profitability.  For more information on this decision refer to the news release of August 14, 2019.

Overview

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Historical Technical Reports

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Campo Morado Resource Summary

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Maps And Drill Plans

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Gallery

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