The prospecting phase currently well underway at the Talisman site has
established the site and the refurbishment of underground areas is providing
access to the Mystery Vein. The underground team is now some 300 Metres
inside the mine.
Figure 1 - Underground team commences refurbishments and sampling
The resource upgrade at Woodstock and Dubbo Deeps, and the Bonanza module to
be released in the next 10 days as well as any further resource updates
including Mystery and Crown will be included in an updated pre-feasibility
study and ore reserve statement. Where possible, areas identified within the
mine such as stopes and other areas found to be accessible during upgrades
will be prospected taking 5kg samples and tested at SGS Waihi for inclusion
into the Bulk sampling program scope of works. As announced the team is
investigating separate prospecting and bulk sampling programs at areas of the
deeps at completion of the deeps resource modelling, any additional areas
which are not included in the current bulk sampling plan will be the target
of any additional plans.
During the period the company announced a significant upgrade to its
resources and mineral targets with the first module Dubbo deeps providing a
102% increase to the Dubbo resource at a grade of 21.98 grams per ton AuEq.
Matthew Hill Stated : It has been a significant quarter for the company in
bringing together both the site and underground establishment which coupled
with the releases of the first deeps modules has delivered tremendous value
to our shareholders. We are well on our way to the commencement on extraction
and we are very excited by the potential for further resource enhancements in
the coming days, particularly given the ability under our resource consent to
extract up to 100,000 Tonnes of ore per annum. We are delighted by the
overwhelming support from our shareholders and the wider community"
TALISMAN GOLD PROJECT (100%) - Hauraki District, NZ
During the period under review the site installation of the permanent site
fixtures has been completed with a second series of change rooms and site
offices to arrive shortly.
Site commencement began in earnest on June following formal closure by the
Department of Conservation of the site. Initial site setup took 2 long days
clearing the land and preparing for the site work. Your company has now
sealed off the site with a perimeter and secondary inside fences behind the
first gate. This will ensure that all pests are kept outside the mine area
and the company has also taken measures to trap rats which plague the area.
Figure 2- Condition of the site prior to mobilization of the gorse infested
mine portal
Figure 3- Portal pad as of July
The site is now fully operational and 2 more site offices will be installed
in the coming days to allow for an equipment and change room and site
planning office.
Security
Security measures have 16 cameras which operate 24/7 being deployed and
installed at site. This will allow safety and security of the company
equipment and will be uploading all recordings to the cloud. The technology
allows a clear field of view at night from each camera which remotely follows
movement. With the increased technology coupled with specialist security
staff the company can assure the safety of contractor equipment and its
staff.
Figure 4- Morning Toolbox talks
Figure 5 - Communications underground at 270M mark
Communications were installed which allow direct contact to the miners
underground as they progress as well as full wireless linking the head office
through to the mine site.
At the Mine Site and underground
To date the following has been completed:
o The site has been completely cleaned of gorse and other invader
species such as rats and a site office set up;
o The buried culvert on the left-hand side of the portal has been
recovered and water from the stream now runs into the pond as it should, not
over the pad;
o Fencing has been erected around the perimeter of the pad and a
secondary gate established;
o The old portal structure has been dismantled and a new, much stronger
structure erected;
o A barricade has been erected around the pond to prevent unintentional
access;
o Scaling of the hanging and sidewalls of the No 8 Drive is complete to
the 300m mark and the first three wooden sets replaced. The ground above the
set is friable and blocky so it will be necessary to rebuild sets in the same
location;
o Underground communication via a Pageboss intercom system is in place
and will be extended as the crew advance. The control room is permanently
manned when people are underground and the crew report in hourly.
o Water handling and compressed air lines are being installed
Health and Safety
Much effort has been expended over the last month on developing fit for
purpose hazard management plans and the accompanying procedures. With
considerable input from the team this has progressed well and we now have a
robust system to underpin our vision of a safe and healthy workplace.
Morning toolbox talks and risk assessments are completed daily on the work to
be undertaken.
Environmental
The company''s environmental policy has been implemented and site inspections
by WRC, HDC and DOC have been well received.
o Silt Dams have been completed;
o Culverts for water flow through to other side of the pond at level 8
are complete;
o Silt control fencing and silt ponds, supplemented with hay bales
continue to ensure water which flows across in heavy rains is well managed;
o A Nursery for native plants has been set up;
o An Eradication plan for invasive species of animals (particularly the
dense population of rats) has commenced with traps already in place.
The company has a very good relationship with the Department of Conservation
and we continue to support DOC wherever possible. Over the years our
donations have significantly enhanced the experience of tourists who flock to
see the old mine workings and walk through the workings known as Windows Walk
which was recently refurbished with materials donated by New Talisman. The
Walking track which will take walkers along the "New Talisman Track" and off
the public road has been designed and work will commence on such in the
coming months and significant work on design was completed during the
quarter.
RESOURCES
As recently announced a substantial upgrade to the company''s gold resources
has commenced after the completion of the first and second modules pertaining
to the Talisman Deeps project.
A Table below sets out that which has been completed and that which remains
in JORC 2004
Au_Eq
Vein Category Tonnes Grade Ounces JORC
Dubbo M, I, INF 382,971 21.98 312,829 2012
Woodstock M, I, INF 203,102 6.30 41,000 2012
Mystery M, I, INF 52,200 6.46 10,800 2004
Crown M, I, INF 146,100 6.68 31,380 2004
Stockpiles Indicated 590 21.88 415 2004
Total M,I,INF 858,260 14.07 388,170
Table 3: Restated Mineral Resources incorporating the remodelled Dubbo and
Woodstock Resources reported in compliance with the 2012 JORC code. Note
there will be slight differences due to rounding during calculation.
NOTE - THE ABOVE TABLE DOES NOT INCLUDE THE SOON TO BE COMPLETED BONANZA
MODULE AS NO JORC COMPLIANT RESOURCE ESTIMATE HAS PREVIOUSLY BEEN COMPILED
IN THIS ZONE
Work on the update of the pre-feasibility study continues well with current
efforts centred on leveraging off the deeps modules already released with a
further module nearing completion.
This is being run in parallel with the Talisman Deeps project as well as an
investigation into the application for further prospecting both at Talisman
deeps and other areas within the Talisman permit. Upon completion of the
deeps modules the next which will be complete shortly the company will
initiate a comprehensive review of mine planning and bulk sampling for its
current resource consent allowing up to 100,000 Tonnes per annum for 2 years
to be extracted from the mine.
Dubbo Deeps
Resource modelling of the Dubbo Zone has resulted in Measured, Indicated, and
Inferred resources increasing to 312,800 oz gold equivalent (Au Eq) at a
grade of 21.98g/t Au Eq. This is an increase of 102% over the 2004 resource
estimate of 140,600 oz gold and 445,800 oz Ag for this zone (154,690 oz Au
Eq). Reporting standards are compliant with those set out in the 2012 version
of the JORC Code.
The updated resource table for the Dubbo Zone is shown below:
MINERAL RESOURCES-DUBBO ZONE
CATEGORY VOLUME TONNES AU_EQ G/T GRAMS OUNCES
Measured 5,164 13,065 96.91 1,266,175 40,708
Indicated 1,227 3,104 74.87 232,413 7,472
Inferred 144,981 366,802 18.87 6,920,406
264,648
Total Resources 151,372 382,971 21.98 8,418,994
312,829
Table 1: Dubbo Resources reported in compliance with the reporting standards
set out in the 2012 version of the JORC code.
A lower cut-off grade of 3.0g/t Au Eq (previously 0g/t) was applied to
reflect the mine cut-off grade estimated for the financial modelling in the
2013 prefeasibility study. No top cut to the data was applied
A further area of 27,000m2 on the plane of the orebody has been identified as
a Exploration Target. Information available indicates that this area is
likely to yield a vein width of between 1.6m to and 2.2m (109,000 to 150,000
tonnes) with AuEq grades ranging between 14.0g/t and 23.0g/t. This target
constitutes a global Exploration Target as defined in the 2012 JORC Code. The
potential quantity and grade is conceptual in nature and there has been
insufficient exploration to estimate a Mineral Resource. It is uncertain if
further exploration will result in the estimation of a Mineral Resource.on
completion of the current prospecting programme the company will focus on
developing an exploration programme to investigate the exploration targets.
"The highest-grade gold mine in the world, by far, is the Tua Tona mine in
South Africa, according to 2013 data. With a gold ore density of 28 g/t, the
Tua Tona has a 30% higher grade than the next-highest density mine. All told,
South African gold mines have the highest average grade, 6 g/t, of any
country in the world. The next highest, Tanzania, only has an average ore
grade of 2.84 g/t.*" *Source- Investopedia
The above clearly shows that the New Zealand with historically very high
grades in epithermal deposits and New Talismans Dubbo deeps orebody of
312,000 ounces at an average of 21.98 grams per ton au eq ranks a NZ
development as having significant potential to be at a world class level. The
completion of the prospecting, bulk sampling and prefeasibility study will
provide the basis for the full extent of the mine life and head grade in full
production.
Sample from BM37 in dubbo Zone
Woodstock Deeps
The Woodstock area lies within metres of the portal opening and has multiple
open faces in the mine and through a second portal. This orebody makes mining
such relatively easy to access and further work will be undertaken to
prospect the area underground in the coming weeks. Samples from the areas
targeted in prospecting has begun to be prepared for testing at SGS in Waihi.
5kg samples from areas of interest will form the basis for further targeting
using existing channel sampling and known data.
As there has been little drilling a significant proportion of the Woodstock
data was unable to meet JORC 2012 requirements. Once the orebody is
prospected further this may allow targeted drilling to expand the mineral
resources which are set out below.
Resource modelling of the Woodstock Zone has resulted in Measured, Indicated,
and Inferred resources increasing to 41,000 oz gold equivalent (Au Eq) at a
grade of 6.30g/t Au Eq. This is an increase of 25% over the 2004 resource
estimate of 32,686 oz AuEq for this zone.
A lower cut-off grade of 2.5g/t Au Eq (previously 0g/t) was applied to
reflect the mine cut-off grade estimated for the financial modelling in the
2013 prefeasibility study.
The resource upgrade at Woodstock and the any further resource increases at
Talisman Deeps in its entirety will be included in an updated pre-feasibility
study and ore reserve statement in due course. Where possible, areas
identified will be prospected and tested for inclusion into the body of works
during Bulk sampling.
A further area of 206,000m2 on the plane of the orebody has been identified
as a Exploration Target. Information available indicates that this area is
likely to yield a vein width of between 1.6m to and 2.4m (827,000 to
1,240,000 tonnes) with AuEq grades ranging between 2.70g/t and 5.35g/t. This
target constitutes a global Exploration Target as defined in the 2012 JORC
Code. The potential quantity and grade is conceptual in nature and there has
been insufficient exploration to estimate a Mineral Resource. It is uncertain
if further exploration will result in the estimation of a Mineral Resource.
On completion of the current prospecting programme the company will focus on
developing an exploration programme to investigate the exploration targets.
The updated resource table for the Woodstock Zone is shown below:
Table 1: Woodstock Resources reported in compliance with the reporting
standards set out in the 2012 version of the JORC code.
Category Volume Tonnes Aueq g/t Grams Ounces
Measured 20,064 50,361 5.25 264,265
8,496
indicated 18,577 46,629 3.56 166,205
5,344
inferred 42,276 106,112 8.01 850,055
27,330
Total resources 80,917 203,102 6.30 1,280,524
41,170
Figure 7 - Graphic of the Maria Vein wireframe with historic drives shown in
grey, the Woodstock Zone is shown in red. This is the pre-mined model,
historic depletions were subtracted from this model.
BONANZA/TALISMAN RESOURCES MODULES NEAR COMPLETION
With modelling of the first two zones now complete the company is now focused
on completion of the Talisman/Bonanza estimate where the historic databases
acquired in 2015 have shown potential to increase the current resources to
JORC 2012 compliance, which would further enhance the overall mineral
resource estimate.
It is important to note that the Talisman and Bonanza Zones have not been
included in previous resource estimates. However, evaluation of the historic
channel sampling and considering recorded production and stope volumes there
are a number of areas where there are unmined blocks of potentially economic
grades remaining. NTL''s engineering team is currently evaluating the ability
to access these areas during prospecting and bulk sampling.
The final stage will be a more detailed analysis into the remaining area
CROWN which will take approximately 60-90 days. Analysis of mystery vein for
compliance with Jorc 2012 is being undertaken and once all of the above are
complete such will form the basis for a full independent valuation on the
Talisman mine asset.
Figure 2 - Long section (oriented North-South) through the Maria Vein showing
Measured (red), Indicated (green) and Inferred (blue) resources in the
Woodstock and Dubbo Zones. Woodstock is the zone on the left of the graphic
while Dubbo is on the right.
Replacing the JORC 2004 Dubbo Resource and Woodstock estimates with the new
estimate for both zones, and converting the remaining JORC 2004 resources
from Crown and Mystery to gold equivalents gives total measured, indicated,
and inferred resources of 396,000 Oz Au_Eq prior to the resource modelling
underway on Talisman/Bonanza.
For further information please contact:
CEO Matthew Hill on +64 217 95559 or matt@newtalisman.co.nz
Competent Persons Statement
The information in this report that relates to exploration results,
exploration targets and mineral resources is based on information compiled by
or supervised by Mr Murray Stevens and Mr Wayne Chowles. Mr Stevens is a
consulting geologist and director of New Talisman Gold Mines Ltd, who is a
corporate member of the AusIMM. Mr Stevens has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves".
Mr Chowles is a Mining Engineer and member of the AusIMM. Mr Chowles is a
full-time employee of New Talisman Gold Mines Limited, he has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Both Mr Chowles and Mr Stevens consent to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
__________________________________________________________________________
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2200
shareholders who are mainly from Australia and New Zealand. It is a leading
New Zealand minerals development and exploration company with a mining permit
encompassing the Talisman mine, one of New Zealand''s historically most
productive gold mines. Its gold properties near Paeroa in the Hauraki
District of New Zealand are a granted mining permit, including a JORC
compliant mineral resource and a JORC compliant reserve statement within the
original Talisman underground mine, and a binding Agreement for Newcrest
Mining to spend up to $5M on an adjacent exploration permit along strike from
the mine, Rahu. The company is now advancing its plans to develop the mine,
and advance the exploration project.
End CA:00304794 For:NTL Type:MKTUPDTE Time:2017-07-31 16:00:42