Telson Mining TSN.v/SOHFF C$.42
Posted: Tuesday Feb 12 7:56:05AM 2019
I took a couple of things from this update. They promised that Tahuehueto will open in 2019 but didn't get specific on a date. They gave us a nice breakdown of specific metals production and should be an ongoing process that will allow us to pinpoint problems and success. The reporting of the theft surprises me. Not because of the actual theft but the sophistication of the operation. Imagine how intricate this operation must have been. Obviously the drivers were working with someone who had access to a tailing dam with ore. They had to dump part of the load and replace it with depleted tailings. I am amazed the company figured it out.
Another fact was the actual average production rate. I had hoped that they had already passed 2,000tpd on a consistent basis and were working towards 2500tpd. Apparently this was too optimistic, as they stated 1800tpd as the actual current average, with spikes to 2200tpd on a day to day basis.
Overall, the situation is the same. We need Tahuehueto to come online to produce the high cashflow that will attract new investors.
Posted: Wednesday Jan 23 8:45:48AM 2019
this is an article generated by the IR for Telson, so not third party objective but gives good background info about how Telson will look going forward from Tahueheuto going commercial in a few weeks. Total market cap of Telson is C$54million. If they can generate C$36million in FREE cashflow on a go forward basis, this is grossly undervalued. But what's new in mining stocks. They're all undervalued because everyone thinks China is headed for the ditch.
Posted: Thursday Nov 15 7:49:06AM 2018
Telson Mining is a base metals mining company operating from one mine in Mexico that recently declared commercial production. Camp Morado was previously operated so Telson bought the shut down mine and restarted it last year. Produces zinc and lead at a targeted 2500tpd for Q4. Today Telson announced they are testing a new process to see if they can recover gold and silver from the tailings of the previous operation plus current production. Company estimates 300K gold in tailings plus resource minerals. If successfully installed, this would transform Morado into a gold mine with signficant base metals. Estimated mine life is 12 years at 2500 tpd so could add 25K/yr of gold production. Still need a lot of info about production, production costs and capex for this new process but could transform Morado.
Telson is building a mill for a second Mexican mine called Tauhuehueto. This mine should begin operation in Q1 2019. Here are company projections:
Average annual production 28K oz Au, 311K oz Ag, 1.7M
lbs Cu, 6M lbs Pb and 10.6M lbs Zn.
• Unit LOM operating cash costs 244.1M (US$74.80/tonne)*
Current market cap is C$58 million. I think this is very low, given the output of the two mines that is coming soon. Adding gold to Morado would be another catalyst to the market cap and value of Telson.
Here is today's PR plus the most recent presentation:
Business Wire•November 15, 2018
VANCOUVER, British Columbia--(BUSINESS WIRE)--
Telson Mining Corporation (“Telson” or the “Company”) (TSX-V – TSN, OTC Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) is pleased to announce retaining Glencore Technology to conduct Albion ProcessTM leach testing of newly processed flotation tailings and historic tailings to increase recoveries of gold and silver, plus zinc flotation testing focused on Jameson CellTM technology to increase zinc recoveries and zinc concentrate grade at the Campo Morado Mine.
States Antonio Berlanga, Telson CEO, “In our ongoing quest to maximize the returns from Campo Morado production we are excited to embark on Albion Process testing, an exciting new proven technology, to liberate gold and silver from mines with refractory gold and silver mineralization. If testing proves successful, we intend to fast-track funding the capital costs and installation of the Albion Process recovery equipment and technology during 2019. Thereafter, we believe Campo Morado will transition from predominantly a zinc producer, into a primary precious metal producer with strong base metal by-products which will certainly and positively impact the mines profitability.”
About the Albion ProcessTM from Glencore Technology’s Albion Process web site
(Albion Process – Official Website)
“The Albion ProcessTM technology consists of two key steps. The first step is ultrafine grinding of the feed material using Glencore Technology’s IsaMillTM. The second step is an oxidative leach of the finely ground feed minerals at atmospheric pressure to break down the sulphide matrix and liberate gold and silver for recovery by conventional means.
Albion Process™ has real-world success in delivering consistently high recoveries – up to 97% in refractory gold and over 99% in chalcopyrite copper concentrates. It has much lower capital cost than traditional leaching plants like pressure oxidation (POx) plants and because it operates at atmospheric pressure, it completely avoids the myriad risks of POx plants. It’s also dramatically less expensive to operate, with a recent study suggesting a third lower in ongoing opex costs. It’s also is incredibly fast to install and commission and very easy to operate.
Albion Process™ is a combination of ultrafine grinding and oxidative leaching at atmospheric pressure. The feed to the Albion Process™ are base or precious metal concentrates. The sulphides in the feed are oxidised and valuable metals liberated, with the economic metals recovered by conventional downstream processing. It was developed in 1994 by Glencore and is patented worldwide.
The Albion Process™ plants around the world are treating a range of materials including a zinc sulphide concentrate, refractory gold/silver concentrates and chalcopyrite copper concentrates.”
The Albion ProcessTM and Jameson CellTM testing with Glencore Technology is estimated to be completed within 15 weeks of receipt of samples in Brisbane, Australia. An additional two weeks are estimated for the preparation and delivery of a Class 5 Engineering Study providing the following information,
A capital cost estimate for the Albion ProcessTM Plant, accurate to a Class 5 (AACE)
High level mechanical equipment list for the Albion ProcessTM Plant
Power demand schedule for the Albion ProcessTM Plant
Albion ProcessTM Plant Process Description
Block flow drawing for the Albion ProcessTM Plant
Reagents and consumables schedule for the Albion ProcessTM Plant at the nominal throughput
An operating cost estimate for the Albion ProcessTM Plant at an accuracy of +20 %.
The Campo Morado samples are in the process of being collected and shipped to Australia with an expected two-week delivery time.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base metal mining projects. Telson is currently in commercial production at its 100% owned Campo Morado Mine in Guerrero, Mexico. Effective May 15, 2018 Telson declared commercial production at Campo Morado. Telson is currently producing zinc and lead concentrates with gold, silver and copper as by-products, processing approximately 2,000+ tons per day through the Campo Morado milling facilities.
Telson's 100% owned Tahuehueto Project, located in north-western Durango State, Mexico is currently in construction development. Pre-production commenced at Tahuehueto in August 2017, currently mining at a rate averaging 170 tonnes per day during Sept 1st – 23rd 2018 shipping ore to a third-party toll mill for processing. Management has a targeted timeline at Tahuehueto to be producing with its own on-site mineral processing plant, with a designed capacity of at least 1,000 tonnes per day, during the first quarter of 2019.