TelsonResources

TELSON RESOURCES INC.

Building Resource Wealth in Mexico

 

Telson Resources Inc. is an exploration and mine development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Mineral Belt of Mexico.

 

The Company has been conducting an exploration and drilling program to expand and upgrade its resources at its flagship Tahuehueto Project in Durango State.

 

On October 4, 2010 Telson announced the results of a Preliminary Economic Assessment ("PEA") completed by Snowden Mining Industry Consultants Inc.  Key findings from the report included:

 

  • Potential mine life of greater than 10 years, with mill operating at full capacity from Year 2 to 8
  • Potential mill feed over Life of Mine of 9.0 million tonnes with average grades of 1.64 g/t Au, 28 g/t Ag, 0.18% Cu, 0.87% Pb and 1.64% Zn.
  • Cinco de Mayo underground operates over the whole mine life with a steady production rate at or near 300,000 tonnes per annum
  • Creston open pit is mined from Years 1 to 8
  • El Rey and Creston underground operations commence in Year 6
  • A substantial spike in the gold grade during Year 2 of 3.5 g/t

 

 

Summary of PEA Estimates
Net Cashflow $US 184.2 million
NPV (5% discount) $US 109.6 million
Internal Rate of Return % 31%
Payback period 27 months
Mine Life 11 years
Max processing rate (per annum) 1,000,000 tonnes
Capital and startup costs $US 89.1 million
Calculations based on 3 year rolling average of metal prices as of August 2010
Gold - 965.81, Silver - 15.38, Copper - 2.92, Lead - 0.95, Zinc - 0.88

 

The Tahuehueto Project is a classic epithermal system hosting multiple structures traced for up to six kilometers of strike length. The project area has geological similarities to nearby mines, notably La Cienega, a polymetallic deposit operated by Penoles, Mexico's largest mining company.

 

 

 

 
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