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Telson kicks off commercial production at Campo Morado zinc mine

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Telson kicks off commercial production at Campo Morado zinc mine

Telson Mining Corp. started commercial production at its wholly owned Campo Morado zinc-lead-silver-gold mine in Guerrero, Mexico.

The mill has been operating for over 60 days at 75% of the targeted mill capacity of 2,500 tonnes per day. Production is targeted to reach full capacity in the third or fourth quarter.

Production for April and the first 15 days of May totaled 6,708.8 tonnes of zinc concentrate and 1,065.8 tonnes of lead concentrate.

The company said May 23 that it generated about US$7.7 million of cash flow during the first quarter and an additional US$5.2 million in April.

A preliminary economic assessment on Campo Morado defined a posttax net present value of US$65 million, using a discount rate of 8%.