Overview

Campo Morado, Guerrero State

Campo Morado is an underground multi-metal mine with infrastructure, installations and equipment capable of processing 2,500 tonnes of ore per day. To the end of 2014 there has been 3,036 exploration diamond drill holes totalling 577,155 metres. The Campo Morado Mine was commissioned and commenced operations in 2009. Nyrstar purchased Farallon Resources in a friendly takeover in 2010 for the equivalent of approximately C$420 million thereby gaining control of Campo Morado. Nyrstar produced up to the end of 2014 when mining operations were suspended in January 2015 and the mine was placed on care and maintenance due to deteriorating industry conditions. During 2014, the mine processed 657,000 tons of ore with an average grade of 1.2g/t Au, 115.7 g/t Ag, 4.6% Zn, 1.2% Cu and 0.9% Pb. The concentrates produced in the same year were 48,000 tons of Zn concentrate at 47% Zn and 29,000 tons of Cu concentrate at 13%, including 6,000 oz of Au and 0.9 million oz of Ag.

On September 18, 2017, Telson announced that it had secured the funding required to restart operations at Campo Morado through a Loan Facility and Offtake Agreement with Trafigura Mexico S.A. de C.V., a market leader in the global commodities industry. As a result of this funding it was announced on October 23, 2017 that operations for production had been re-started at an initial mill throughput of 1,400 tonnes per day. Shortly thereafter, Telson released the results of a new NI 43-101 Mineral Resource Estimate containing approximately 16.7 million tonnes of measured and indicated resources grading 1.79 g/t gold, 165 g/t silver, 0.81% copper, 0.93% lead and 4.0% zinc (based on a 5.5% cut-off grade)