VANCOUVER, BRITISH COLUMBIA, June 10th, 2016 – Telson Resources Inc. (TSX Venture – TSN) ("Telson" or the "Company") announces that as a result of a review by the British Columbia Securities Commission ("BCSC"), the Company is issuing this news release to clarify the Company's previous disclosure. Some information in previous Company Management Discussion and Analysis ("MD&A"), its website property pages, investor fact sheet, and corporate presentation included mineral resource estimates and preliminary economic assessment (PEA) disclosures that were not compliant with the standards of disclosure for mineral projects as set out by National Instrument 43-101 ("NI 43-101") and as a result could be misleading.
The Company has removed certain documents and pages from its website because of the technical disclosure issues; however, wishes to clarify the disclosure in certain documents in case a person has viewed such information before it was removed on June 1, 2016.
The Company's website previously contained an investor fact sheet dated May 9, 2016 that included a mineral resources table sourced from Metal Mining Consultants Inc. and dated October 2015, (the MMC 2015 Resource) for the Tahuehueto Project. The use of the MMC 2015 Resource within the May 9, 2016 investor facts sheet was an error by the Company as the MMC 2015 Resource is not yet supported by a NI43-101 compliant report. The May 9, 2016 investor fact sheet should have displayed the resources tables used and reported in the 2010 PEA which remains current. The MMC 2015 Resource was prepared to support the preparation of an internal scoping study investigating the economics of a 500 tonne per day underground mining operation, a significant change from the combined open pit and underground mining method contemplated in the 2010 PEA. The MMC 2015 Resource used a higher cut-off grade than the resource estimate used in the 2010 PEA and as such, resulted in a significant reduction in tonnage from the resource estimate used in the 2010 PEA, and the MMC 2015 Resource, posted in error, did not include information required by NI 43-101 about the key assumptions, parameters, and methods used to calculate the mineral resource and is specifically retracted by the Company.
Additionally, the fact sheet referred to 2010 PEA results for the Tahuehueto Project that did not include prominent cautionary language required by NI 43-101. This also occurred in the Company's MD&A for the period ended November 30, 2015, in a corporate presentation previously linked from the home page of the website, and in the Tahuehueto project pages of the website. The Company provides the applicable cautionary language, as follows: Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The Company's website, on the Tahuehueto Project pages of the website and in a corporate presentation that was previously linked from the home page of the website, included a resource estimate summary table that listed separately the resource categories of Measured, Indicated and Inferred, then summed the Measured and Indicated resources together and finally summed the Measured, Indicated and Inferred together. Adding the category of Inferred mineral resources to the categories of Measured and Indicated resources is not permitted by NI 43-101 public disclosure rules. The Company specifically retracts the disclosures that added inferred mineral resources to the other categories of mineral resources contrary to NI 43-101.
The Company's website previously contained a corporate presentation that has been removed. In such corporate presentation, the Company disclosed a material improvement in its 2010 PEA results using October 2011 metal price assumptions including $1,671 gold and $31.8 silver. The company is unable to prepare a technical report supporting these increased PEA results, which are specifically retracted, and the Company affirms that the October 2010 PEA remains current. In addition, this corporate presentation contained a slide on page 13 of the presentation entitled Mining Concepts & Ore Bodies. NI 43 – 101 considers the word "Ore" in the context of mineral resource estimate to be potentially misleading because "Ore" implies technical feasibility and economic viability that should only be attributed to mineral reserves. The Company will retitle this slide to read "Mining Concept & Mineralized Bodies"
On March 1, 2016, Telson announced that it was preparing an internal scoping study on the Tahuehueto Project. Since that time, the Company has completed that internal scoping study in draft form and has retained Metal Mining Consultants Inc. to update and author an independent Pre-Feasibility Study (the "PFS") prepared to Canadian National Instruments 43-101 Rules for Public Disclosure, utilizing key components of the Company's draft internal scoping study. The PFS is anticipated to be completed by September 2016.
The Company is working to update the website's technical information and the applicable pages and technical information will be updated with the name of the qualified person who supervises the preparation of, or approves, the relevant technical information on the website and any documents linked from the website. The Company will ensure that its future disclosures, including its MD&A, name the qualified person responsible for any technical disclosure.
The Qualified Person who has reviewed and approved the technical disclosure in this news release is Ralph Shearing, P. Geol, who is the Company's president and a director.
About Telson Resources Inc.
Telson Resources Inc. is an exploration and development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Belt of Mexico. The Company holds 99% of the outstanding shares of its Mexican subsidiary company that maintains 100% ownership in 7,492 hectare Tahuehueto Property, an advanced stage gold and base metal exploration and development project.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed) "Ralph Shearing"
Ralph Shearing, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
WARNING: The Company relies upon litigation protection for "forward-looking" statements. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Telson Resources Inc. relies upon litigation protection for forward-looking statements.
Contact:
Glen Sandwell, Communications Manager
Tel: (604) 684-8071 Email: [email protected]
Original Article: http://www.telsonresources.com/images/pdf/News_Releases/2016/TSN_NR_141_Jun10_2016.pdf
