Telson Mining Corp. Announces Temporary Suspension of Operations at Campo Morado due to COVID-19 Update
Vancouver, April 06, 2020 - Telson Mining Corp. ("Telson" or the "Company" (TSXV:TSN) (OTC:SOHFF) (Frankfurt:TSGN formerly SQ82) informs shareholders that the Mexican Ministry of Health has proclaimed a national health emergency with an immediate suspension order of all "non-essential" public and private sector business, including mining in order to mitigate the spread and transmission of the COVID-19 virus. The order became effective on its publication date in the Official Gazette of the Federation (dated March 31, 2020) and remains in place for a period of 30 days, from March 30 to April 30, 2020. As a result, Telson announces that it immediately commenced the process of winding down operations at its Campo Morado mine in Guerrero, Mexico to comply with the proclamation and is in the process of reducing its workforce on site in compliance with the Decree and will implement care and maintenance activities during the suspension. Appropriate security and environmental procedures will remain fully functional. As this unprecedented situation continues to evolve on often an hourly basis, we appreciate our shareholders' support as we navigate the impacts of the COVID-19 pandemic on the business world.
The Company implemented control measures several weeks ago to assist with preventing the spread of COVID-19. These include training of personnel with respect to safety in prevention of COVID-19 infection, social distancing, the cancellation of any non-essential visit to the mines, comprehensive sanitation measures for the workplace and company transportation, and pre-screening for virus symptoms. Additionally, access restrictions to limit travel in and out of the local communities have previously been implemented.
"The health and safety of our employees, union partners, contractors and the communities in which they work and live are a priority," said Ralph Shearing, President and CEO of Telson Mining. "We will continue to provide significant support to our employees and where possible to local community residents. To date, Telson has not experienced any incidents related to COVID-19 at its sites or corporate offices."
About Telson Mining Corporation
Telson Mining Corp. is a Canadian based mining company with two 100% owned Mexican gold, silver and base metal mining projects.
Telson's Tahuehueto mining project, located in north-western Durango State, Mexico is currently under construction having advanced to approximately 70% completion and 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. The Company is targeting completion of construction during 2020, six to eight months after securing final funding.
Campo Morado is a polymetallic base metal mine with mining and milling equipment capable of producing up to 2,500 tonnes per day. Four months after purchasing Campo Morado, Telson brought the mine back into operation initiating preproduction in October 2017 and declared commercial production in May 2018, operating the mine continuously for 22 months until August 2019 when the project was put on care and maintenance as a result of declining zinc prices and community issues. With improving conditions Telson brought the mine out of care and maintenance and reinitiated mining and milling operations during January 2020.
Visit: www.telsonmining.com
On Behalf of the Board of Directors
(signed) "Ralph Shearing"
Ralph Shearing, CEO/President and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Telson declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Telson's production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study was completed and relied upon to make a production decision. Telson has completed a preliminary economic assessment ("PEA") mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017 and April 4,2018).
Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned recommencement of mining operations at Campo Morado; the ability to recommence outstanding payments to Nyrstar; and other possible events, conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company's properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that recommencement of operations at Campo Morado will proceed as planned; that discussions with Nyrstar and the abeyance of any potential default proceedings will be completed in a timely manner and on reasonable terms, the continuity of the price of gold and other metals, economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information about Telson Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
ir@telsonmining.com
Tel: +1 (604) 684-8071