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.