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Telson Mining reports strong output at Campo Morado mine despite coronavirus and mill challenges

The miner said the final month of the quarter saw 52,352 tonnes of material processed at its SAG mill

Telson Mining Corporation -
New SAG mill liners were delivered near the end of August and the new mill design was installed and operational on September 6, since when the plant has successfully operated continuously, averaging 2,181 tonnes per day

Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) has revealed that, despite challenges earlier in the year, its Campo Morado mine in Mexico is now running at full capacity and achieved strong output in September.

Posting preliminary production figures for its third quarter to September 30, 2020, the miner said the final month of the quarter saw 52,352 tonnes of material processed, which resulted in 3,123 tonnes of zinc concentrate and 671 tonnes of lead concentrate being produced for the month.

READ: Telson Mining taps finance veteran Ruben Alvidrez Ortega for director as the mine developer advances its projects in Mexico

Across the quarter as a whole, the firm processed 127,438 tonnes and to underline how September improved, the figure for August was 38,370 tonnes, while in July it was around 36,716 tonnes milled.

"After losing production as a result of COVID-19 pandemic government mandatory shut down earlier this year and dealing with operational difficulties largely related to the SAG mill failures, with the new liner design fully installed and performing above expectations, we now have Campo Morado Mine operating at full capacity and achieved a very good month of production in September", Ralph Shearing, the CEO of Telson, told investors in a statement.

"October is underway and looks like we could see similar production results this month with the mill continuing to perform perfectly."

New SAG mill liners were delivered near the end of August and the new mill design was installed and operational on September 6, since when the plant has successfully operated continuously, averaging 2,181 tonnes per day.

Preliminary realized revenue for 3Q, net of all concentrate sale deductions such as treatment charges and penalties came in at US$5.679 million, Telson noted.

Cash costs, all-in sustaining cost per pound and other operational financial details will be disclosed in the firm's upcoming third-quarter report, which is due to be filed on or before November 30, it added.

Polymetallic base metal producer Campo Morado is capable of generating up to 2,500 tonnes per day. The firm, which also owns the Tahuehueto mine in the country, bought it back into operation initiating pre-production in October 2017 and declaring commercial production in May 2018.

The mine was then operated continuously for 22 months until August 2019 when it was placed on care and maintenance as a result of declining zinc prices and community issues.

It was brought out of care and maintenance and reinitiated mining and milling operations during January this year.

Also in today's statement, the firm said it has closed its debt settlement with Accendo bank, the latter having funded the payout of $659,758 of debt related to Tahuehueto mining project's suppliers. Telson, therefore, has issued to Accendo over 7.33 million shares at a deemed price of C$0.09 each.

Contact the author at giles@proactiveinvestors.com

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TSX-V:TSN
Market: TSX-V
Market Cap: $51.15 m
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Telson Mining sees strong numbers for Campo Morado in Q3 production results

Telson Mining (CVE: TSN- OTCPINK: SOHFF) President and CEO Ralph Shearing joined Steve Darling from Proactive with news the company has seen strong numbers from preliminary production results for the third quarter of 2020 at the Campo Morado Mine located in Mexico. Shearing telling...

2 days, 12 hours ago

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