TELSON RESOURCES INC SOHFD

Profitability

[shakeypremis]

I've just come across this company. I've been looking at estimating profitability, focusing on the Campo Morado mine initially. It seems given the grades and mill throughput it could output around the following amounts of metals per day: Gold: 80 oz Silver: 231,000 oz Copper: 245,000 lb Lead: 28,600 lb Zinc: 123,000 lb I've not been able to find (so far) figures from the company regarding costs per tonne of ore processed (1,400tpd at the CM mine) but even if rather excessive costs are used then given the above production figures the mine could be generating in excess of $100m USD profit per year, again, from just the CM mine. Does this match the thoughts and calculations of others here? If this is the case then this company would seem immensely undervalued and the current market capitalisation.

[shakeypremis]

My apologies, 7400 oz silver per day. That changes my calculations somewhat, but still says something like over $60m USD per year profit given high costs.

[Spikearoo1]

Yo Shakeypremis...good to hear from someone else on this cricket board.  IMO this is one of the most undervalued plays in the resource sector.  No one is noticing it.  I've tried to spread the word but no one cares.   Based on what i have read and understand from mgmt, the profit for this is huge because the recovery rates are in the high 80's % and you are only talking

[shakeypremis]

Hi Spikearoo1 Where did you find the 80% recoveries figure? Do you have a link to a reference? Are you referring to the Tahuehueto project? I think the recovery figures for Campo Morado are significantly lower from what I have read.

[Spikearoo1]

sept 26 2017 press release.   over 80% recoveries on ore concentrate...so that must mean that they mine the ore, run it through the milling process and are are left with concentrate that they then have a concentrate recovery rate greater than 80%.  Welcome your comments. Thanks Shakeypremis.

[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

[flash338]

I ran some numbers a while back on one of the mines and started a small position. Last week I came back to TSN and I was coming up with potentially some jaw dropping numbers. I thought I might be missing something so I emailed the guy that writes a mining stock journal I subscribe to and see if I was overlooking something. He'd never heard of them. He did a quick look and thought maybe they

[flash338]

Well... the formatting didn't come out the way intended. Sorry about that

[Spikearoo1]

Hi Shakey, Very interesting...is your 80% discount, how realistic?  You have already taken into account recovery rates as per each metal mined.  Could your discount also be considered your cost to mine?   If i recall, the CEO said that they were able to achieve a 30% IRR in a radio interview that took place a while back.  So if the achieved those numbers would it be fair to

[shakeypremis]

I just used a ridiculous 80% discount to come up with a worse than worse case scenario (hopefully) and thus demonstrate that a high level of profit is quite likely here.

[Spikearoo1]

Sounds good.  So based on your very conservative assumptions what would you figure TSN should trade at per share?  

[flash338]

Hey Shakey, Hey Spike, Did you guys notice the press release today. At the bottom under About Telson Res. they are processing 1,400 -1900 tpd. Last I knew the where at 1000. Could Campo be ramping up a bit?? It might be wishfull thinking but if recoveries were not what they would like, they wouldn't be feeding their mill more rock.

[flash338]

I checked other news releases going back to November and under the About TSN at the bottom they list 1400tpd not 1400 to 1900. So they added the 1900 to it yesterday. Anyway, I'll be reading future NR's all the way to the bottom.

[shakeypremis]

That is interesting information, but weren't we expecting them to ramp-up anyway?

[flash338]

Yes, when they got the recoveries decent. I was watching for a NR specifically on that, not buried at the bottom of other NR's. Any thoughts on comparables? Producers in Mexico with 50-300 Oz a year. Gold Resource Corp. comes to mind. Anyway, I was thinking of working up a table.

[Spikearoo1]

Hey ... I noticed that at the end as well.  CM started at 1400 TPD and and it clearly states that in 2018 they plan to get to 2500 TPD which is the max for the current mill at CM.  So since they changed to the range of up to 1900 i supppose they are mining more than 1400 now.  But at some point in 2018 they should be at 2500, and my guess would be by 3rd quarter. At T they are

[flash338]

It is unfortunate. My heart goes out to the family. I started a list of comparables. So far I've got Gold Resource Corp, Torex, Leagold, Argonaut, and Alio Gold. I came across an interesting explorer while at it Mexican Gold Corp (MEX). I'll probably start a small position next week. I think I came across what the author of the mining stock journal I get was referring to with security at

[Spikearoo1]

Interesting that you bring up MEX.  We were looking at that early last week as well.  We have not initiated a position yet but are considering it.   Let me know what you find.  It does look interesting. Cheers...Spike

[flash338]

There is a decent Palisade Radio video on YouTube posted about a month ago on MEX. Far more informative than there website. It's titled Ali Zamani & Brian Robertson: Delineating Mexico'state Next... What else are you looking at? I've got a position in JAX that I've added a trade on top of a couple of weeks ago. They have their first set of drill results due any day and if they

[Spikearoo1]

Hey Flash...Thanks...will look into. I have a large position in SVB.V...should be releasing final 2017 drill results shortly...bit of a sleeper and likely sitting on some massive resource in Zinc, Lead, Silver, Copper etc.   Also into RNX and ETG...i have held SVB and RNX since mid last year when they were much lower and still accumulate on as results get better...however do not plan to add

[flash338]

Watch out for SVB. I rode a small position down a couple of years ago and dumped it. Their latest drill results are interesting but the resource they have been sitting on is full of lead oxide. The dust is deadly and an environmental nightmare. Not sure about permitting. I recently read an article on Silver Bull and the oxides. If you search, you could probably find it.

[flash338]

I remember where I saw the article. I didn't remember everything right. The article was on Nevada Zinc but mentions SVB as having the same type of deposit. Their new hits are sulfide though... https://angrygeologist.blogspot.ca/2016/11/nevada-zinc-not-all-zinc-deposits-are.html?m=1