News: New Talisman Gold Mines increases total gold resources by 25%

New Talisman Gold Mines (ASX:NTL) has filed an application to include the Rahu exploration permit into the Talisman Mining permit after declaring a Resource over Rahu.

Rahu has an Inferred and Indicated Resource of almost 2.4 million tonnes at 0.54 grams per tonne, or 41,591 ounces of contained gold, increasing the company’s total Resource by 25% to just under 250,000 ounces.

This is part of its strategy to ensure the future growth and expansion of the Talisman Project.

Talisman is located on the Coromandel Peninsula and had previously produced 1 million ounces of gold and 3 million ounces of silver.

“Whilst continuing to complete steps toward the Talisman Mine, the technical team have completed a significant body of work to make an application on Rahu and have met the criteria set out in the minerals program,” chief executive officer Matthew Hill said.

“It has always been our view that Rahu is an extension of the Talisman Vein systems and would become part of the longer term future of the sustainable mining development at the Talisman mine.

“The Rahu deposit has increased the Talisman Groups total resources by approximately 25% to just under 250,000 ounces of gold.”

Rahu Resource

New Talisman has completed about 2,492 metres of drilling at Rahu, which together with previous drilling campaigns and geological investigations, provides evidence its mineralisation and alteration present represents the upper levels of and northern extension of the Talisman epithermal gold system.

Most of the drilling has intersected broad zones of low-medium grade gold and silver mineralisation with narrower higher grade intervals.

This is characteristic of the upper parts of an epithermal system.

Highly mineralised quartz vein fragments (up to 7.6g/t Au) in hydrothermal breccia zones present within drill core attest to the presence of deeper higher-grade quartz veining that is characteristic of the veins mined within the Talisman Mine.

It also provides further evidence that Rahu is an extension of Talisman. The EOL to include Rahu in the Talisman MP will allow for a natural extension of mining operations from the Talisman.

Rahu has an Indicated Resource of 277,669 tonnes at 0.6g/t gold and 8.79g/t silver and an Inferred Resource of 2,116,904 tonnes at 0.53g/t gold and 2.64g/t silver.

Talisman Gold Mine   

New Talisman was earlier this month authorised to enter and operate the Talisman gold mine permit on the Coromandel Peninsula.

A work program is currently underway to exploit target areas, including Rahu, while discussions are progressing with a major gold producer regarding the potential for a joint venture arrangement on exploration targets at Rahu.

The company is also working closely with the New Zealand Department of Conservation to finalise the regulatory aspects of its trial mining project plan.

Talisman previously produced 1 million ounces of gold, 3 million ounces of silver, and has a current JORC Resource of 205,000 ounces of gold from two separate mines, Talisman and Crown.
   
The Talisman permit area has the potential to host between 0.55 million to 2 million ounces of gold and between 1.5 million to 6 million ounces of silver.

The vein systems within the two mines extended over a strike length of 1,000 metres and depth of 700 metres.

Both historic mine areas are now held under a single 25 year permit to mine.

A Pre-Feasibility Study completed in 2013 confirmed an initial Phase One life of mine of 5 years to generate NZ$68.2 million in revenues for a cash surplus of NZ$23.4 million.

Start-up capital was estimated at NZ$5.4 million.

Analysis

While the Talisman Gold Mine already offers compelling economics, the addition of an additional 41,591 ounces of contained gold from the Rahu to the existing 205,000 ounces is value accretive.

This could also draw the major gold producer that it is already in discussions to sign a joint venture exploration deal.

The next steps for NTL will be the lodgement of a health and safety management plan by the end of August.   Ore stockpiles will be readied for treatment once the company has finalised toll treatment arrangements.