Disappointing Updates, page-7

"1/2/2017 — Gold
Slow progress continues on Talisman

The protracted blueprint for redeveloping the Talisman gold mine at Karangahake indicates New Talisman Gold Mines Ltd (NZX & ASX: NTL) needs to sort out project capital requirements and whether it will take up a major partner.

In the December quarter talks continued with the Asian group Amer which have been ongoing from last year and no agreement on “material matters such as valuation and asset composition” have been reached.

The parties were still talking at quarter end.

NTL said it has approval in principle to proceed with proposals for managing traffic safety on the Talisman mine road, and has completed the preliminary roadway design.

The company said it was necessary to follow a continuous review process to ensure the safety of all road users when operations begin.

“Once complete the company will be able to issue tender documents for the full scope of works including earthworks and traffic control requirements,” NTL said.

Updating the pre-feasibility study continues with current efforts centred on a new resource estimate utilising geochemical and structural information obtained from the historical database.

This was being run in parallel with the Talisman Deeps project.

The quarter report said Talisman Deeps progressed well during the quarter. This project aims to identify extensions to the existing indicated and inferred mineral resources in the Talisman workings, through analysis and modelling of the historical database acquired 2015.

The first stage of Talisman Deeps will involve merging all existing data into one database and compiling the most advanced three dimensional model of the mines geology and historical workings ever produced.

Data verification of the historic geochemical sampling database was complete, and the most important historical plans have been digitally scanned and digitising of the historic workings and structural geology was underway.

“Preliminary results previously reported suggest sizeable blocks of unmined ground remain between the 10 and 16 Levels in sections of the Maria Vein referred to as the Talisman and Bonanza Shoots.

At the nearby Rahu prospect, considered to have geological analogies to the historic Karangahake workings, Newcrest Mining Ltd (ASX: NCM), as exploration manager, has undertaken geological studies utilising data provided to it by NTL to define deep drill targets.

These studies included a re-evaluation of Rahu drill core using hyperspectral analysis and chemical analysis to determine zonal patterning of hydrothermal alteration mineralogy and geochemistry indicative of gold mineralisation at depth."