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Campo Morado's restart propels Telson Mining to quarterly profit

Last updated: 06:15 31 May 2019 AEST, First published: 06:04 31 May 2019 AEST

campo morado
Telson's Campo Morado project is a Mexican polymetallic mine producing around 2,000 tons per day of zinc and lead concentrates with gold, silver and copper as byproducts

Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) is happy to report that its Campo Morado mine has generated a significant profit during the first quarter of 2019.

The Vancouver-based company reported on Thursday that Campo Morado had generated a C$3.1 million profit during the period after being taken offline for an extended duration of care and maintenance.

Telson swung to a profit in 1Q 2019, reporting a net income of C$681,000 compared to a loss of C$218,000 during the year-ago quarter. Total revenue for the period was C$10.8 million.

READ: Telson Mining Corporation gets a thumbs up from Hallgarten & Company

A polymetallic mine, Campo Morado sold around 20 million pounds of zinc concentrate at an average grade of 45% and nearly 5 million pounds of lead concentrate at an average grade of 23%, generating gross sales of C$15.3 million.

In 1Q 2019 Telson produced just over 9,000 tons of zinc concentrate and 2,220 tons of lead concentrate, containing an estimated 9.7 million pounds of zinc, 1.5 million pounds of lead, 213,000 ounces of silver and 895 ounces of gold.

Telson’s CEO Antonio Berlanga attributed the mine’s success during the first quarter to the operations team’s “diligence and hard work in implementing efficiencies, correcting start-up challenges and controlling costs.”

Berlanga noted that the 1Q average daily mill throughput rate was approximately 1,765 tons per day and that management is working towards increasing this rate towards 2,500 tons per day during 2019. “(We expect) to increase the operating profit margins through economics of scale,” he said in a statement.

Tahuehueto generating revenue

At the company’s Tahuehueto project in Mexico, Telson produced 168 tons of lead concentrate at a grade of around 39% lead, 6% copper, 80 grams per ton gold and 840 grams per ton silver. It sold 172,000 tons of lead concentrate for proceeds of around US$606,000.

It also produced similar figures of the base and precious metals at a lower grade to generate total proceeds of US$290,000. Total Tahuehueto estimated cash proceeds from pre-production in Q1 2019 were US$896,000.

Telson’s wholly-owned Tahuehueto project is currently in pre-construction. Tahuehueto is currently in preproduction at a rate averaging approximately 100 tons per day and shipping ore to a third-party toll mill for processing.

The company aims to be in full production with its own on-site mineral processing plant by the end of 2019.

Telson is one of the few companies to have entered the zinc mining space with two mines, both located in Mexico.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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