Historic Leachox Testing Shows Recoveries Up To 65% Gold and 81% Silver Possible at Campo Morado

 

Telson Mining Corporation (“Telson” or the “Company” (TSX-V, OTC Pink-SOHFF, Frankfurt-TSGN (formerly SQ82)) is pleased to announce results of historic Leachox Process testing for the possible increase of gold and silver recoveries on the Campo Morado tailings material in 2013 by Maelgwyn Mineral Services of Cardiff UK.

Highlights

Final Tails

• The test work achieved a maximum gold dissolution of 65 % after an effective 10 passes

of Aachen oxidation, at a grind specification of 80% - 20 μm.

• The maximum silver dissolution of 75% was achieved after an effective 40 passes of

Aachen oxidation, at a grind specification of 80% - 40 μm.

Reforma Zone Sample

• The test work achieved a maximum gold dissolution of 45% after an effective 40 passes

of Aachen oxidation, at a grind specification of 80% - 20 μm.

• The maximum silver dissolution of 81 % was achieved after an effective 40 passes of

Aachen oxidation, at a grind specification of 80% - 10 μm.

In Telson’s ongoing quest to maximize the returns from Campo Morado production, the Company has recently become aware of and had discussion with, senior members of Maelgwyn Mineral Services, Maelgwyn conducted preliminary testing of samples from Campo Morado in 2013 for Nystar, the project’s former owner. The samples were from 2013 process tailings, presumably G9 Zone, as well as fresh mineralization from the Reforma deposit, a future production zone.

The Leachox testing indicated that substantial increases in precious metal recoveries could be available at Campo Morado using Maelgwyn Leachox Process. Very positive results were obtained in the 2013 testing for both of the samples submitted with a maximum recovery of 65% gold and 75% silver at a grind size of 20 microns from the process tailings sample and a maximum recovery of 45% gold and 81% silver at a grind of 40 microns from the Reforma deposit sample. The report stated, “It should be noted that the above test work was peformed at a scouting level only and higher recoveries would probably be achieved with optimisation work”.

“The Leachox precious metal recovery testing conducted by Maelgwyn demonstrates that significant increases up to 65% gold and 81% silver are possible at Campo Morado” states Antonio Berlanga, Telsons CEO. “Should additional planned Leachox testing of optimization work to confirm recoveries, ultimate best grind size and reagent additions show a path forward to a commercial installation of this technology, we could improve recoveries from current levels of gold at 15-20% and silver 30-40%, which would significantly increase the mines profitability by increasing the ounces of gold and silver produced at Campo Morado.”

About Maelgwyn Minerals’ Leachox Refractory Gold Process, a patented technology process.

Maelgwyn Mineral Services Ltd (MMS) holds a European Patent for its Leachox process for the treatment of refractory gold ores. Over the 10 years since first receiving a European patent the Leachox process route has become the industry leader in the low-cost recovery of gold from refractory and sulphide orebodies. There is now world-wide installed capacity of Leachox to recover over 3 million ounces per annum of gold contained in sulphides in such operations as; the Kibali Mine in the DRC, the Tongon Mine in Cote d’lvoire both now owned by Barrick Gold (formerly owned by Rangold Resources), the TGME mine in South Africa owned by Barberton Mines and the Vasilkovskoye Mine in Kazakhstan owned by Vasilkovsky MMC

The Leachox process uses simple ultra-fine grinding equipment combined with the Aachen Reactor; a proprietary low pressure, high shear mass transfer device utilising oxygen to partially oxidise the sulphides. When combined with the liberation of gold by the ultra-fine grinding of concentrates it results in acceptable but, more importantly economic gold recoveries.

The Leachox process is a partial sulphide oxidation process for the recovery of gold and silver from sulphide minerals. Depending upon the mineralogy a number of processes are used but central to the Leachox process is the Aachen shear reactor. In the leach process, it enhances the kinetics and reduces reagent consumptions (oxygen, cyanide and lime) which otherwise can be prohibitive. The reactor is designed to introduce a high degree of shear which removes passivating films that may lead to loss of recovery.

For more detailed and technical information on the process, please visit the Maelgwyn website at: https://www.maelgwyn.com/maelgwyn-minerals-leachox-refractory-gold-process-hits-the-gold-standard/

About Telson Mining Corporation

Telson Mining Corporation is a Canadian based mining company with two Mexican gold, silver and base metal mining projects. Effective May 15, 2018 Telson declared commercial production at its 100% owned Campo Morado Mine, which is currently producing zinc and lead concentrates with gold, silver and copper as by-products.

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 approximately 200 tonnes per day and 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, Q3-Q4 2019.

Metal concentrate deliveries and sales are well underway from both projects.

Visit: www.telsonmining.com

On behalf of the board of directors

(signed) “Ralph Shearing”

Ralph Shearing, P.Geol, President and Director

Cautionary Note Regarding Production Decisions and Forward-Looking Statements

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 possible events, conditions or financial performance that is 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, 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.

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