TELSON RESOURCES INC SOHFD

RE:RE:RE:RE:RE:Profitability

[shakeypremis]

Campo Morado

I don't think that is particularly enlightening or accurate. I have taken the historical recoveries from the January 2018 investor presentation which are as follows:

Gold: 25% Silver: 38% Copper: 68% Lead: 60% Zinc: 70%

I made a little table as follows to roughly work out what amount of metal might be recovered at a mining rate of 2500tpd given the grades from the investor presentation. I have used the following metal prices:

Gold: $1300 Silver: $17 Copper: $3.20 Lead: $1.15 Zinc: $1.5

I have also included an 80% discount to the market value of the metals to hopefully account for AISC. Allowing for a huge discount to the market price should mean the figure I come up with should be below the figure for the gross profit Telson achieve for the Campo Morado mine per year.
 

Metal	Au g/t	Ag g/t	Cu (%)	Pb (%)	Zn (%)
Grade	1.84	137	0.82	0.95	4.56
g/t conversion	1.84	137	8200	9500	45600
2500tpd (grams)	4600	342500	20500000	23750000	114000000
2500tpd (oz,lbs)	147.9099678	11013	45194.71	52359.73	251326.68
Recoveries (percentage)	0.25	0.38	0.68	0.6	0.7
Recovered metal per day	36.97749196	4184.9	30732.4	31415.84	175928.68
oz/lbs	36 oz	4180 oz	30700 lb	31400 lb	175900 lb
Values at current market price	48070.73955	71143	98343.69	36128.21	263893.01
Total	517578.7396
Total (80% discount)	103515.7479
300 days operation per year (80% discount)	USD 31,054,724.37

So being very conservate my figures show Campo Morado generating in excess of $30m USD profit per year. At the current market cap of $75m CAD ($60m USD), $30,m USD profit (which will probably be exceeded) is huge.

 

Thoughts anyone?