Bell Potter report of 18 April 2018

I'm starting a thread on this, as it gives me the s**ts and I want as many people to read it as possible.
(Oops...thread title should read '18 April 2017')
Report was titled: Overly cautious Monty development leaves lots of upside

http://www.talismanmining.com.au/im...nty-shines-despite-soft-Feasibility-Study.pdf

Mine Plan excludes shallow Upper Zone ore (5% Cu and 1g/t Au not good enough?)

Of the Ore Reserve, 800kt averaging 9.4% copper and 1.5g/t gold is included in the Mine Plan but the Upper Zone has been excluded. The component of the Ore Reserve which is not in the Mine Plan amounts to 120kt at about 5% copper and 1g/t gold, which largely relates to the so-called lower grade ore in the Upper Zone. While we note the FS describes the Upper Zone as having "marginally positive economics", the Upper Zone has a higher grade than the grade of ore currently being mined by SFR at DeGrussa. The FS envisages that there will be a 30-month period of production at rates up to about 400ktpa of ore.

We strongly expect that with additional ore likely to be found in the Lower Zone, (especially in the area of the extremely high grade bornite mineralisation for which there are very tight limits on its current extent as reflected in the Ore Reserve), along with the likely mining of the Upper Zone and discovery of additional ore at depth and laterally, ore production will extend well beyond 30 months. We expect that the extremely high grade bornite zone will end up being much more extensive than the current very tight limits assumed for it on the basis of the limited amount of drilling used to define it.

We understood that the JV was going to carry out significant additional definition drilling of the bornite mineralisation but this does not seem to have occurred as there has not been any revision to the Maiden Mineral Resource estimate since its release on 13 April 2016.