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New Talisman Gold Mines Ltd Eyes Mine Life Increase At Talisman Mine

New Talisman Gold Mines Ltd (ASX:NTL, NZX:NTL) is already looking at increasing mine life and future production at the wholly owned Talisman underground gold mine in New Zealand.

The company is preparing to commence gold production through a bulk sampling program at the Talisman mine, which will generate near term cash flow.

New Talisman has been conducting analysis on newly acquired historical data to identify easily accessible exploration targets.

The data includes hundreds of samples within the permit area with identified target areas showing average grades of up to 28.6 g/t gold.

These targets are - extensions to the Dubbo zone, Mystery vein, Crown mine and Sutro workings.

The targets are further evidence that the historically highly productive Talisman mine has the potential to once again become a significant producer of gold and silver.

Exploration targets

Dubbo zone

Historical data acquired in 2015 includes plans showing data that suggests potential depth extensions of the Dubbo Zone.

541 historical samples taken from this area show an average grade of 28.6 g/t gold equivalent using a 3.0 g/t lower cut off.

Mystery vein

The newly acquired historical data supports speculation that the Mystery vein is part of the same system as the Roderick Dhu veins, located 600 metres north.

39 historical samples show an average grade of 11.9 g/t gold and 107.4 g/t silver.

Crown mine

Historical data from 123 surface and near surface samples recorded an average grade of 10.5 g/t gold and 19 g/t silver.

Sutro workings

Preliminary observations are that the veins in the Sutro workings from which 39 channel samples were taken average 8.46 g/t gold and 22.8 g/t silver.

Background

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

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.

New Talisman has successfully processed ore samples from the mine under a toll treatment agreement and the gold and silver was profitably extracted and sold.

Bulk sampling

The company is currently in the process of raising up to NZ$12.3 million through a rights issue to fund the Talisman gold mine into the bulk sampling phase.

Bulk sampling will see the company extract on average 650 tonnes per month for a period of 18 months to 24 months.

Based on the average ore reserve grade of 10.8 g/t gold, a 90% recovery and US$1,300 per ounce gold price, revenues of NZ$30 million could potentially be generated.

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