Telson Mining Corp (CVE:TSN) (OTCMKTS:SOHFF) (FRA:TSGN) Thursday announced that it has begun transporting ore from its Tahuehueto gold project in Durango, Mexico, to be processing at the Atocha toll mill, as part of a 3,500 tonne toll mill campaign.
The company noted that around 3,000 tonnes of ore has been delivered to the Atocha mill to date, with processing scheduled to start within the next several days when the final available ore is received. Telson is expecting to recover gold, silver, lead and zinc, within a lead bulk concentrate.
During 2018 and 2019, Telson processed approximately 42,320 tonnes of ore at Atocha, producing about 1,286 tonnes of lead concentrates with significant gold and silver content and 2,850 tonnes of zinc concentrate.
READ: Telson Mining has two very advanced assets in Mexico and "excellent" exploration potential at both
Telson Mining also said it is waiting for final funding to finish construction of the processing plant and related assets to produce gold, silver, lead, and zinc in concentrates within its own on-site mineral processing facility, with a designed capacity of at least 1,000 tonnes per day. It is targeting completion of construction during 2021, 8 to 12 months after securing final funding.
Telson also owns the Campo Morado zinc mine in Guerrero State, which has had over US$500 million invested in it by previous owners, and where operations were suspended in August last year due to falling zinc prices, but mining restarted in January 2020.
The asset has mining and milling equipment capable of producing up to 2,500 tonnes per day (tpd). Future plans for Campo Morado included increasing production to 5,000 tpd over five years with exploration success. In line with that, exploration is targeted to double the resources in two to three years.
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