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New Talisman Gold Mines approved to commence site activities in New Zealand

Published: 08:30 26 Apr 2017 AEST

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A JORC resource at Talisman Deeps will add value to the mine

New Talisman Gold Mines (ASX:NTL) has been granted a certificate of compliance which will allow the commencement of site activities at the Talisman gold mine in New Zealand.

It will also allow for the commencement of sampling work at the mine to test Talisman and Talisman Deeps geological data.

Work at Talisman Deeps has resulted in identification of a number of additional areas of gold mineralisation which can potentially be included in the bulk sampling project.

The company’s plan is to establish the deeper orebody known as Talisman Deeps immediately whilst finalising the traffic management plan for the mine.

Charbel Nader, chairman, commented: “It is a pleasure to say we are commencing works at the Talisman site area.

“With access now available to establish the site we are well on our way to progressing our ambitions for the historically productive Talisman Mine.”


Site works

The site work activities that will be undertaken alongside the advancement of the traffic management plan include:

- Perimeter fencing;
- Construction of the portal pad and associated structures;
- Ventilation fan installation;
- Installation of a generator and air compressor;
- Installation of reticulation services through the underground workings;
- Removal of old beams and replacement of underground structures;
- Sampling and drilling at Mystery and other targeted areas;
- Establishment of site office and security office;
- Road use and maintenance; and
- Vegetation management – trimming and weed control.


Background

New Talisman retains a 100% interest in the Talisman Mine and a 20% interest in the Rahu Project which is immediately to the north of the Talisman mine in New Zealand.

A pre-feasibility study for underground mining at the Talisman confirmed an initial phase one life of mine of 5 years to generate NZ$68.2 million in revenues and a cash surplus of NZ$23.4 million.

During August 2016, the company commenced an exercise to quantify gold mineralisation thought to be hosted at depths, which is known as Talisman Deeps.

A review of data to date provides supporting evidence of Talisman Deeps to increase gold resources below 15 Level of the historical mine.

The company also has an agreement with Newcrest Mining Ltd (ASX:NCM) at Rahu for Newcrest to spend up to $5 million on an exploration permit.


Analysis

The approval granted to New Talisman allows the company to further progress its promising work to date at Talisman Deeps alongside progressing general operations at the Talisman Mine.

Work to date has identified several potential ore sources, which, if are able to be included into the scope of the bulk sampling project, are likely to have a material effect on the final Mineral Resource and Ore Reserve position of the Talisman Mine.

Talisman Deeps has the potential to enhance the bulk sampling project and ultimately the long term future of the mine.

The bulk sampling phase will also provide the company with the possibility of generating short term cash flow.

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