Telson Mining has begun commercial production at its Mexico-based Campo Morado polymetallic mine after starting pre-production activities in October 2017.
According to a Wednesday (May 23) press release, the mine has completed over 60 days of operational steady state production at 75 percent of management’s targeted mill capacity of 2,500 tonnes per day.
“Achieving commercial production at Campo Morado is a major milestone for Telson. When we commenced pre-production activities in October 2017, we provided guidance that we expected to declare commercial production in Q3, 2018,” said José Antonio Berlanga, director and CEO.
He added, “[t]o do so mid Q2, a full 3 months ahead of schedule, is a testament to the tremendous skill and expertise of our mining team and the hard work of our employees.”
Berlanga also noted that for the first time in its history Telson “will now start booking revenues. Our goal at Campo Morado is to increase throughput at the mill to 2,500 tonnes per day by Q3/Q4. We are also investigating new technologies to improve precious metals recoveries.”
Over the past 60 days Campo Morado’s production milestones include:
- Mill processed 112,480.9 tonnes of mineralized material at an average daily rate of 1,875 tonnes.
- Average zinc recoveries of approximately 73 percent.
- Zinc concentrate average grade of approximately 44 percent zinc, 404 grams per tonne silver and 1.42 grams per tonne gold.
Telson says that bulk underground mining methods are now underway after an “extensive development phase.” This will allow Campo Morado’s production rate to increase towards the planned level of 2,500 tonnes per day.
Last month, Telson released its Q1 2018 results, stating that during pre-production Campo Morado processed 148,676 tonnes of mineralized material with an average head grade of 3.65 percent zinc, 0.41 percent copper, 0.9 percent lead, 1.14 grams per tonne gold and 108 grams per tonne silver.
As of 2:41 p.m. EST on Wednesday (May 23), Telson’s share price was sitting at US$0.82, up 22.39 percent year-to-date.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Telson Mining is a client of the Investing News Network. This article is not paid-for content.