This technical report presents a preliminary economic assessment for the Campo Morado Project in Guerrero State, Mexico, effective March 30, 2018.
Report context
This NI 43-101 technical report on a preliminary economic assessment for the Campo Morado Project was prepared with an effective date of March 30, 2018, and a report date of March 31, 2018. The report was prepared for Telson Mining Corporation and addresses mineral processing, metallurgical testing, recovery methods, and related project parameters based on information available at the time of preparation and data supplied by outside sources.
Processing route
Mineral processing plant
The Campo Morado project includes a mineral processing plant at the site. The report documents the existing plant facilities and their configuration as part of the overall project infrastructure.
Metallurgical test work
Metallurgical test work has been conducted to support the mineral processing assessment. The test work was designed to evaluate the processing characteristics of the mineralized material and to inform the proposed recovery methods. The report distinguishes between historical operational data from previous mine operators and the results of metallurgical testing programs.
Proposed production plan
The proposed production plan outlines the expected mining and processing sequence over the life of the mine. The plan incorporates mineral resources that the report indicates have reasonable prospects for eventual economic extraction.
Recovery methods
The recovery methods section details the process flow sheet for the mineral processing plant. This includes the sequence of unit operations designed to recover the target metals from the mined material.
Water treatment plant
A water treatment plant is included as part of the processing facilities. This plant is designed to manage water quality requirements associated with the processing operations.
Process control and metallurgical control and accounting
Process control systems are in place to monitor and regulate the processing operations. Metallurgical control and accounting procedures are established to track metal production and processing performance.
Tailings disposal
Tailings disposal facilities are described within the recovery methods section. The report notes the tailings storage facilities as a component of the project infrastructure, with considerations for their design and operation.
Water management
Water management is addressed as part of the processing and environmental considerations. The report describes the systems for water supply, circulation, and treatment necessary for the processing operations.
Key reported parameters
| Parameter | Value | Basis |
|---|---|---|
| Report effective date | March 30, 2018 | Report date |
| Report date | March 31, 2018 | Report date |
| Project location | Guerrero State, Mexico | Report text |
| Processing plant status | Existing facility | Historical operating data |
| Metallurgical test work | Conducted | Testwork |
| Tailings storage facilities | Existing and proposed | Design and historical |
| Water treatment plant | Included in design | Proposed design |
Project website: https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1592-tsx-venture/luca/52626-telson-mining-corporation-campo-morado-update-2.html
Technical qualifications
This report was prepared as a National Instrument 43-101 Technical Report. The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in the services provided, based on information available at the time of preparation, data supplied by outside sources, and the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Telson Mining Corporation subject to terms and conditions of its contracts. Except for the purposes legislated under Canadian provincial and territorial securities law, any other uses of this report by any third party is at that party's sole risk.
The report notes specific limitations regarding data sources and assumptions. Mineral processing and metallurgical testing information is based on the available test work and historical plant data. The report distinguishes between proposed design parameters, historical operating data from previous operators, and results from metallurgical test work programs.
Source: Campo Morado Project, Guerrero State, Mexico, Technical Report on Preliminary Economic Assessment, effective March 30, 2018, report date March 31, 2018. Sections 1.7, 1.13, 13.0, 16.0, 17.0.
