- Total JORC 2012 resources in Dubbo alone doubles to 312,800oz gold equivalent at 21.98g/t;
- Updated resource estimate place Talisman among the highest grade underground gold mines globally;
- Updated Pre-feasibility study the next step in the development of Talisman Deeps;
- Resource upgrades of remaining Talisman Deeps modules by 31 July;
- Development work underground has commenced;
- Acceleration and/or expansion of exploration & extraction programmes to be considered;
- NTL Fully funded to 2020 under current prospecting and bulk sampling plans.
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.
Matthew Hill said - The grades established of up to 146.2g/t for an average of 21.98g/t places this deposit as one of the highest grade mineral resources in NZ and ranks in the top 5 worldwide. The dramatic increase in Dubbo resources ultimately proves our longheld belief that there is significant remaining ore at depth. The data compilation and resource modelling has brought a much greater understanding of the mine and sets a very positive platform for long term mine development at Talisman. Work at site continues to progress underground and is on budget and ahead in project timelines.
Mineral resources upgrades to JORC 2012 standards are underway at three other modules within the Talisman Deeps zone:- they lie under the Talisman workings that currently are being refurbished by the company. Bulk sampling of the Mystery Vein zone will be undertaken once that refurbishment is completed.
The increase in measured, indicated, and inferred gold equivalent resources in the Dubbo Zone is a significant milestone and demonstrates the potential for increasing the life of the project.
A further 95,000 oz Au Eq has also been identified at a grade of 23.75g/t as exploration potential, giving a total Mineral Inventory for the Dubbo Zone of 408,000 oz Au Eq.
The exploration potential 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.
New Talisman removed a stockpile of remnant ore believed to be representative of ore from the Dubbo zone in 2014. It was milled at Newmont's Waihi treatment facility and returned on average 42g/t gold.
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.
Once underground refurbishment and prospecting is completed, the company will initiate a bulk sampling project. Consent from Hauraki District Council has been received to remove 20,000 cubic metres per annum for a period of two years.
The resource upgrade at Dubbo Deeps, together withany 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.
Based on current plans the company is fully funded for completion of the Talisman deeps resource modelling and completion of prospecting and Bulk sampling through to 2020. The Board will consider acceleration and/or expansion of exploration and extraction plans subject to funding.
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.
Gold equivalents have been used due as the historic data is expressed in bullion values. These have been converted to gold equivalents based on the gold price during the main historic mining period to 1919 where gold price was a constant GBP4.25 or USD20.47. All more recent exploration data has been converted to gold equivalents at the same metal prices for consistency of resource estimation and reporting.
WOODSTOCK AND BONANZA/TALISMAN RESOURCES MODULES NEAR COMPLETION
The Company is currently completing the modelling of the Talisman-Bonanza and Woodstock sections of the historic mine where the historic databases acquired in 2015 have shown potential to increase the current resources to JORC 2012 compliance in these sections as well, which would further enhance the overall mineral inventory.
All results will be restated under the JORC 2012 code and modelling will utilise historic channel samples as well as recent exploration data. Locating drill hole data from holes drilled from 15 Level in 1908 has led to increased confidence to extend the geological interpretation of the Maria Vein to around 300m below sea level and is expected to increase mineral potential further.
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 entire Talisman Deeps project including all known data is expected to be finalised by 31 July.
Replacing the JORC 2004 Dubbo Resource with the new estimate for Dubbo and converting the remaining JORC 2004 resources from Woodstock, Crown/Welcome and Mystery to gold equivalents gives total measured, indicated, and inferred resources of 388,000 oz Au_Eq prior to the resource modelling underway on the Woodstock, Bonanza and Talisman areas.
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About New Talisman Gold Mines Limited
New Talisman Gold Mines Limited (NZE:NTL) (ASX:NTL) is a dual listed with over 2,300 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 within the original Talisman underground mine, and a Heads of agreement with Newcrest on an adjacent exploration permit along strike from the mine. The company is now advancing its plans to develop the mine, and advance the exploration project.
More about New Talisman Gold at www.newtalisman.co.nz
New Talisman Gold Mines Limited