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14/9/2018 — Gold
Project vagaries and red tape felt at Talisman

The chairman of New Talisman Gold Mines Ltd (NZX & ASX: NTL), Charbel Nader, told shareholders there had been progress on the company becoming a gold miner.

However, there had been a number of delays due to natural vagaries afflicting mining projects as well as some impediments through New Zealand’s regulatory environment.

“The macro-economic conditions have been benign to slightly favourable, with the gold price over the last 12 months - with prices ranging from $US1,195 per oz to $US1,352/oz with a current price of $US1,198/oz.” This, he said, translated in Kiwi dollars to a range of $NZ1,828-$NZ2,068/oz.

He said the current environment for the NZ mining and petroleum industries has seen a reduced level of activity in the country.

Nader said the company’s Talisman mine redevelopment at Karangahake has a history of having produced more than 3 million oz of bullion. The company has a 25 year mining permit with renewed land access arrangements.

Key mine infrastructure was now largely established to allow increased underground activity.

The NTL technical team recently completed an updated pre-feasibility study on the measured and indicated portion of the resource which “reinforces the robust economics and low environmental impact of the project.”

Highlights of the PFS include:

• The estimated value of Talisman has more than doubled, from a value of $15 million to $36 M.

• Estimated recovered gold increases by 50% to 51,000 gold equivalent ounces.

• Estimated direct operating costs to produce an ounce reduced to $NZ710/oz ($US490/oz).

• Estimated ore reserves increase by more than 40% from 30,500 oz to 44,100 GE oz.

The chairman said the proposed mining production plan will be adjusted as knowledge is gained from bulk sampling, and this will form a large part of the current bankable feasibility study.

A separate Taliisman Deeps project scoping study has been completed.

This work has established that Talisman is one the highest-grade gold mines in New Zealand.

Nader said a pilot plant for the project is on its way to the project and should arrive later this month.

This month a 5 tonnes of Mystery Vein ore was excavated which will allow for a number of 5 kilogram samples to be tested.

What opportunities lie ahead?

• Reopening of Talisman will begin with a start to mining under the resource consent.

• There will be accelerated extraction volumes at Mystery Zone and a start to extraction at Dubbo Zone which hists high grade ore.

• Installation of pilot plant and a start to production.

• Completion of a mine plan covering the next five to seven years.

PDF File NTL chairman address (550.5 kilobytes)
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