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.

Event ImageTahuehueto lies within the prolific Sierra Madre mineral belt, which hosts a series of historic and producing mines and most of Mexico’s active exploration and development projects. The project is situated approximately 100 kilometers southwest of silver mines in the Guanacevi region and about 25 kilometers north of the silver mines at Topia.

Consisting of 28 mining concessions grouped into five non-contiguous blocks that total approximately 7,492 hectares the Tahuehueto is in an advanced stage of development with mine construction plan during 2017 and targeting commercial production within the first quarter of 2018. Telson Mining Corporation owns 100% of the project through a 99.9% share ownership in its Mexican subsidiary company.

Significant exploration upside potential exists both on the existing reserve/resource explored structures 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 approximately an additional 6700 hectares of concessions. Telson’s concessions cover about 80% of the mineralized District Tahuehueto, and there is a significant amount of prospective ground within this government recognized geological district.

Telson’s plan is to get 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.

Ni 43-101 Pre-feasibility Study, Mineral Reserve Estimate And Updated Mineral Resource Estimate

In January 2017, Telson announced the results of a NI 43– 101 compliant Prefeasibility Study (the “PFS”) for its Tahuehueto Project located in Durango, Mexico. A summary of the results from this study are found in the table below.

Summary Of Economic Results From 2017 Pre-feasibility Study
Average Annual Revenues ("EBITDA") US $16.7 million
NPV @ 8% Annual Discount Rate (Post Tax) US $77 million
Internal Rate of Return (IRR) 36%
Payback Period 3 years
Mine Life 21 years
Average Cost per Tonne (incl mining, processing and G&A, smelting, refining & royalties) US $91.26
Average Cost per Ounce AuEq US $494.95
Metal Prices
Gold US$ 1,180.00/oz
Silver US$ 16.70/oz
Lead US$ 0.87/lb
Zinc US$ 0.92/lb
Copper US$ 2.65/lb

Recent Developments At Tahuehueto

On December 18, 2017 the Company announced that it had secured a US$15 million loan facility and Offtake Agreement with Trafigura Mexico S.A. de C.V. which provides the full funding required to finalize mine construction. The project is now in a construction phase with a timeline to be producing on site in its own mineral processing plant in Q1 of 2019. Telson's plan is to begin processing at a rate of 550 tpd and increase this production to the 1,000 tpd maximum of the current mill specifications during the first year of operations.
Visit our photo gallery of the Tahuehueto project during its construction phase