Ann: FLLYR: NTL: Full Year Preliminary Announceme

• Release Date: 30/05/13 11:18
• Summary: FLLYR: NTL: Full Year Preliminary Announcement
• Price Sensitive: No
• Download Document  13.51KB

					

NTL
30/05/2013 09:18
FLLYR

REL: 0918 HRS New Talisman Gold Mines Limited

FLLYR: NTL: Full Year Preliminary Announcement

30 May 2013

FOR IMMEDIATE RELEASE
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL]
Full Year Preliminary Announcement
FINANCIAL RESULTS
 Reporting Period
31 March 2013 Previous Reporting
31 March 2013 Change
 (12 months) (12 months)
 $ $
Revenue from ordinary activities 11,791 35,649 -67%
Loss from ordinary activities after tax attributable to members of the listed
issuer
914,265
766,259
+19%
No dividend attributed to this period

New Talisman Gold Mines limited (NTL) added to the company's value
significantly during the year through the completion of Scoping and
Pre-Feasibility studies on the Talisman mine and the investment into the
Mpokoto gold project in the DRCongo.  As the company has no significant
income streams, it raises funds from shareholders and new investors for its
activities, this has lead to greater reported losses.

Tenement expenditure for the reporting period was $648,075 compared to
$419,016 in the previous reporting period representing significant activies.
No exploration expenditure was written off during the current period compared
to $40,693 written off in the previous reporting period.

Overhead expenditure for the reporting period was 15% more than in the
previous reporting period largely due to increased management costs to
progress the company's Talisman project.

At the end of the year the Company had a cash balance of $325,880.
HIGHLIGHTS
- Restructured company's focus on Talisman with all non-core and offshore
assets managed by 100% subsidiary Coromandel Gold Limited (CGL)
- Successful Completion of Pre-Feasibility Study on the Talisman mine
- Execution of an option over the Mpokoto Gold Project in DRC
- Successful completion of an SPP and a fully underwritten rights issue
raised NZ$1.8M
CORPORATE
Talisman Gold Mines Limited successfully implemented all the changes
necessary to focus its core efforts on the development of the Talisman gold
project in the Hauraki gold field, New Zealand.

Coromandel Gold Limited, a 100% subsidiary of New Talisman, manages and
develops New Talisman's exploration and non-core assets, such as the Mpokoto
project, with separate board and management.
TALISMAN GOLD PROJECT (NEW ZEALAND)
Completion of Pre-Feasibility Study
The Pre-Feasibility Study was completed in March 2013 and analysed a range of
options centred on the concept of a small scale underground mine with low
capital requirements which would generate the funds required for further
opening up and evaluation of future possible ore shoots.

The operation would focus initially on the high confidence resources,
immediately adjacent to the accessible Talisman No 8 Level drive and create
the infrastructure necessary to support further evaluation work.

The production plan developed as an output from the study indicated that an
initial five-year operation, with peak production of 35,000 tonnes of ore and
12,000 ounces of gold per annum was possible. The total capital requirement
estimated was NZ$10.9 million with an all-in unit cost, including capital
expenditure, of NZ$1166/oz.

Key findings from the study were released to the market on 18 April 2013.
EXPLORATION - Coromandel Gold Limited
Golden Valley (Waihi, New Zealand)
The area lies along the eastern side of Newmont's mining tenements at Waihi
and has no previous gold or silver production.

Existing airborne and ground geophysical data shows a signature similar to
that over Waihi and the results from more recent geochemical surveys warrant
testing.

Extensive exploration data was reviewed and re-interpreted to aid selection
of drilling targets, and several holes are planned to test the main
geochemical and geophysical anomalies.
Base Metals (Northland, New Zealand)
An exploration permit covering more than 1100 hectares was granted in the
September quarter 2012 over an area about 30 km west of Whangarei.

The geological environment is prospective for base metals and gold, and the
area has a history of small scale copper production for agricultural
fertiliser.

No exploration appears to have been undertaken in the past 30 years and the
company is completing a study of all available geological reports and
references, prior to planning ground surveys.
Mpokoto Gold Project, Africa
The Mpokoto project is an advanced development gold project, with a reported
JORC Code (2004) compliant resource located in the Democratic Republic of
Congo; the details have previously been announced. With an in-country
specialist team and a senior executive engaged to raise the required funds
NTL sees the project as a significant milestone in the transition to junior
producer.

During the period New Talisman entered into a loan and option agreement with
Netcom Global Inc (Netcom), the indirect owner of the Mpokoto gold project,
which gives New Talisman the right to acquire up to 62.5% of the shares in
Netcom for a commitment to spend up to USD$1.75M over the next 18 months.

THACKARINGA COBALT PROJECT (NEW SOUTH WALES, AUSTRALIA)

The company holds a 21.7% interest in Broken Hill Prospecting Limited (BHPL)
which owns the project.

The most recent resource evaluation (JORC Code (2004), 27 July, 2012)
estimated the combined Inferred Mineral Resources of the Thackaringa
cobalt-pyrite deposits (Pyrite Hill, Big Hill and Railway) as 35.7 million
tonnes of pyrite mineralisation with an average grade of 1.85 pounds per
tonne of cobalt (66 million pounds of contained cobalt). In addition,
'Potential' for between 37 and 59Mt of pyrite mineralisation of similar
cobalt grade was estimated (additional 63 to101 million pounds of contained
cobalt). This Potential is conceptual in nature and more drilling is required
to further define it and there is no certainty that more drilling will result
in an upgrade to the Resource.

In November 2012, BHPL completed a detailed Scoping Study for the production
of sulphuric acid by-product from the deposits and this has highlighted
significant merit for a long-term operation with a low capital start-up and
staged development.

The main aspects of the study:
- Robust economics for production of sulphuric acid by-product
- Five fast-track, low cost development options identified at nominal
processing rates of 1.5 to 7.5 million tonnes per annum
- Strong Australian sulphuric acid demand from fertiliser and mineral
processing industries
- Enhancement of project flexibility for development of world-class cobalt
mine
- First step in ongoing cobalt development, infrastructure and marketing
evaluation

The study, undertaken in Australia by international engineering consultants
GHD, confirmed that pyrite from BHPL's Railway, Pyrite Hill and Big Hill
cobalt deposits could yield valuable sulphuric acid. Currently, sulphuric
acid is in strong demand in fertiliser production, mineral processing and
other industries. The processing of the pyrite for sulphuric acid production
would also provide significant cobalt and iron recovery.
CAPITAL RAISING
Share Purchase Plan
An SPP was initiated in April 2012 and raised NZ$306,000 (before expenses).
Funds were applied to the Scoping Study as a precursor to the Pre-Feasibility
Study at Talisman.
Completion of fully underwritten rights issue
NTL raised A$1.5M (before expenses) through a rights issue underwritten by
Cannacord Genuity Pty Ltd.  The funds allowed for the completion of the
Pre-Feasibility Study which was completed on time and under budget.

Matthew Hill
Executive Director

Annual results are outlined below:
Consolidated Statement of Comprehensive Income

 Reporting Period
31 March 2013 Previous Reporting Period 31 March 2012
   $ $
  Revenue  11,791 35,649
  Total revenue  11,791 35,649

  Audit fees  16,550 17,865
  Depreciation 1,103 908
  Director fees  72,022 81,793
  Director remuneration  225,753 90,000
  Foreign exchange loss  6,160 812
  Share revaluation loss  7,664 9,339
  Rent and leasing  14,517 13,313
  Operating expenses  318,093 318,727
  Total administrative expenses  661,862 532,757
Exploration costs written off - 40,694
Total operating expenses 661,862 573,451
Loss from operations  650,071 537,802
  Share of results of associate using equity method   (Broken Hill
Prospecting Ltd)
264,194
228,457
  Net deficit attributable to members  914,265 766,259
  Earnings per share
  Basic earnings/(loss) per share (0.22) cents (0.25) cents
  Diluted earnings/(loss) per share (0.15) cents (0.25) cents

  Consolidated Statement of Financial Position

Reporting Period
31 March 2013
Previous Reporting Period 31 March 2012
 $ $
  Cash 325,880 346,921
  Receivables and prepayments  40,103 28,990
  Advances to related parties  156 7,525
  Current assets 366,139 383,436

  Property, plant & equipment  5,564 7,284
  Intangible assets (prospecting expenditure) 8,720,090 8,072,015
  Investments  340,007 36,545
  Investment in associate using equity method 672,460 936,654
  Non-current assets 9,738,121 9,052,498

  Total assets 10,104,260 9,435,934

  Payables  136,328 108,021
  Employee entitlements  16,063 6,559
  Current liabilities 152,391 114,580

  Total liabilities  152,391 114,580

  Capital  25,814,174 24,269,394
  Reserves  335,341 335,341
  Retained profit/(loss)  (16,197,646) (15,283,381)
  Total equity 9,951,869 9,321,354

  Total Equity and Liabilities 10,104,260 9,435,934
  Net tangible assets per security
  Net tangible assets   1,384,170 1,363,919
  Net tangible assets per security  0.3 cents 0.4 cents

  Consolidated Statement of Cash Flows

Reporting Period
31 March 2013
Previous Reporting Period 31 March 2012
   $ $
  Cash flows relating to operating activities
  Cash inflows 12,781 37,424
  Cash outflows  (737,966) (560,290)
  Net operating cash flows  (725,185) (522,866)

  Cash flows relating to investing activities
  Cash inflows 61 5,847
  Cash outflows  (834,588) (379,126)
  Net investing cash flows  (834,527) (373,279)

  Cash flows relating to financial activities
  Cash inflows 1,838,226 Nil
  Cash outflows  (293,398) Nil
  Net financing cash flows  1,544,828 Nil

  Net increase/(decrease) in cash held (14,884) (896,145)
  Cash at beginning of period  346,921 1,244,128
  Exchange rate gain/(loss)  (6,157) (1,062)
  Cash at end of period  325,880 346,921

  Consolidated Statement of Changes in Equity

Reporting Period
31 March 2013
Previous Reporting Period 31 March 2012
 $ $
  Equity at start of period  9,321,354 10,087,613
Net loss  (914,265) (766,259)
  Shares issued  1,544,780 Nil
  Equity at end of period  9,951,869 9,321,354

  Ownership in Broken Hill Prospecting Ltd
  Percentage held  21.7% 21.7%
  Contribution towards / (against) net loss  264,194 228,457

No dividends or distributions were paid or are planned.

All statements are prepared in accordance with New Zealand equivalents to
International Financial Reporting Standards.

There are no accounting policies which the directors believe are critical to
the portrayal of New Talisman's financial condition and results which require
the directors to make judgements and estimates about matters that are
inherently uncertain.

All accounting policies have been applied on bases consistent with those used
in previous years.

The annual financial statements are subject to completion of the audit.

About New Talisman Gold Mines Ltd

New Talisman Gold is a dual listed company (NZSX & ASX: NTL) with 1800
shareholders who are mainly from Australia and New Zealand. It is a leading
New Zealand minerals development and exploration company with a portfolio of
high quality mineral interests. Its gold properties near Paeroa in the
Hauraki District of New Zealand are a granted mining permit, including a
mineral resource within the original Talisman underground mine, and an
adjacent exploration permit along strike from the mine. The company is now
advancing its plans to develop the mine, and progress the exploration
project.

Through a subsidiary company, New Talisman Gold owns 21.7% of Broken Hill
Prospecting Limited, which is planning to develop a cobalt project at
Thackaringa, about 25 kilometres south-west of Broken Hill in Australia. BPL
is listed on the ASX (Code: BPL).
More about New Talisman Gold at www.newtalisman.co.nz and Broken Hill
Prospecting at www.bhpl.biz

Competent Person Statement
Exploration activities and results contained in the Broken Hill Prospecting
Ltd section of this report are based on information compiled by Dr Ian
Pringle, a Member of the Australasian Institute of Mining and Metallurgy. Dr
Pringle is the Managing Director of Broken Hill Prospecting Ltd and also a
Director of Ian J Pringle & Associates Pty Ltd, a consultancy company in
minerals exploration. Dr Pringle has sufficient experience which is relevant
to the style of mineralisation and types of deposits under consideration and
to the activity which he is undertaking to qualify as a Competent Person as
defined in the December 2004 edition of the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code).
Dr Pringle has consented to the inclusion in this report of the matters based
on his information in the form and context in which it appears.
Potential; H&SC quantified a potential target size within the modelled
Thackaringa pyrite mineralisation envelope. This Potential lies outside of
the Inferred Mineral Resource because of the absence of nearby drilling. By
extending the search distance within the 3D mineralisation the model target
size is between 37Mt and 59Mt at a grade between 600ppm and 900ppm cobalt.
The Potential is conceptual in nature and more drilling is required to
further define it. There is no certainty that this will result in a Mineral
Resource.
End CA:00236834 For:NTL    Type:FLLYR      Time:2013-05-30 09:18:30