TELSON RESOURCES INC SOHFD

RE:RE:RE:Thoughts on future profits

[shakeypremis]

Reposting my own calcuations based on historical recoveries and the stated grades in the resource estimate (measured and indicated):

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

Even with a massive 80% discount to the market values of the recovered metals for 300 days operation at Campo Morado $31m profit per annum might be acheiveable.

The recovery percentage for the metals is pretty naff to be honest, particularly for gold and silver. There could be a lot of extra value to be had here if they can get those percentages up (which they say they beleive they can). Even the recovery rate for zinc (70%) is not great. Just imagine if they can get get gold up from 25% to say 35% and silver up from 38% to 50% or something. Perhaps that's not realistic. Even if they could increase the zinc recovery rate from 70% to 75% that equates to about another $1.2m profit added to my figures with the ridiculous 80% discount included.