Ann: MINE: NTL: Progress Report

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• Summary: MINE: NTL: Progress Report
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NTL
05/07/2013 15:51
MINE

REL: 1551 HRS New Talisman Gold Mines Limited

MINE: NTL: Progress Report

5th July 2013
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED (NTL, NTLOA or NTLO)
FOR IMMEDIATE RELEASE

Talisman Mine Progress Update
- Metallurgical Sampling Project Plan approved by Board
- Good progress made on negotiations with consenting agencies
- Negotiations advancing on funding for the project
- Key focus for NTL remains on developing Talisman gold
project on an accelerated path
- Mpokoto gold update
The Pre-Feasibility Study on the re-establishment of the Talisman Mine in
Karangahake was completed in March 2013 and identified the opportunity to
begin a small scale mine as a precursor to an expanded operation. The small
scale mine would provide a low risk approach to rehabilitating parts of the
mine and establishing operations to generate short term cash flow while
undertaking further evaluation work to increase the resource base.
NTL has commissioned a Feasibility Study on the Talisman Project as the next
logical step in the project development cycle in order to optimise the plan
identified in the Pre-Feasibility Study. As an integral part of the
Feasibility Study the company will undertake a metallurgical sampling program
to recover bulk ore samples from the resources targeted for early mining.
These samples will be subjected to rigorous metallurgical testwork.
Planning for this stage of the project is now complete and has been presented
to the NTL Board.
The work programme consists of three parts namely establishing the surface
infrastructure required to support underground operations, refurbishment of
the underground workings to provide safe access to the sampling sites, and
metallurgical sampling via a series of small drives (tunnels) developed on
the ore. Infrastructure establishment and underground refurbishment is
expected to take approximately five months to complete.
This will allow for both the detailed testwork required to support the design
of a processing facility and provide additional information on the geological
structure and continuity of the ore ahead of the known workings to further
inform the mine design process.

Rock specimens from the BM37 Bonanza zone were sent for chemical analysis at
SGS New Zealand's Waihi laboratory with the following results:
ROCK Au Au(R) Ag Ag(R)
SAMPLE PPM  PPM PPM PPM
BIN 1-6 2130 - 3660 3690
PRA 2-1 882 885 >4000 -
PRA 2-2 300 - 2540 -
PRA 4-1 766 755 2670 -
PRA 4-6 1.02% 1.05% >4000 >4000
  Au gold    Ag silver   (R) repeat analysis  PPM parts per million (grams
per tonne)
 % percent    > greater than
Analytical methods used by SGS New Zealand, according to gold and silver
content of sample
AAS15Q:   AAS after DIG15Q (Aqua Regia Digest, 0.2g)
FAD303:   Gold, Fire Assay, AAS, 30g, Over-Range
FAD2V:  Gold, Fire Assay, AAS, 10g, Over-Range
An independent geometallurgical report on these rock specimens suggests
testwork to assess the recoverability of gold via gravity concentration and
flotation methods is essential.
The company continues to hold discussions with various companies in Australia
and New Zealand for the possible toll treatment of ore.
Negotiations with consenting agencies for the planned low impact bulk
sampling are progressing well.
Funding discussions for the low capital required for the bulk sampling phase
have commenced and NTL will update the market on the progress of these
discussions in due course.
Matthew Hill Executive director stated "We are continuing in our sole focus
to drive the Talisman Mine into its initial bulk sampling phase and initiate
production on the timelines announced in the annual report. It is a clear
advancement of the company's steps toward production in a climate where other
developers are unable to advance their projects particularly in NZ. With
considerable flexibility in the high grades of Talisman the project appears
well shielded from the current depressed gold price and we believe we will be
in a solid position when gold price cycle changes".
Mpokoto Gold Project Update
NTL today announces that it has decided not to exercise its earn in right on
the Mpokoto Gold project to spend a up to a further US$1.75M to earn a 37.5%
interest as it was unable to complete satisfactory technical, legal and
financial due diligence with the information provided in the deadline set out
by Netcom of July 3.
NTL continues to have exposure to the project by way of its current 12.5%
holding in Netcom and its US$250k convertible loan.
For more information on NTL go to www.newtalisman.co.nz
Shareholder enquiries: Matthew G Hill, Executive Director +64 27 5557737

Competent Person Statement
The information in this report that relates to gold and silver exploration
results in New Zealand is based on information compiled by or supervised by
Mr Peter Atkinson, a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr Atkinson is a director of Coromandel Gold Ltd and also a
director of Up Minister Ltd a consultancy company and he has sufficient
experience that is relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Atkinson consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.

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About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZX Main Board & 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 JORC
compliant 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 advance 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.newtalismangold.co.nz
End CA:00238280 For:NTL    Type:MINE       Time:2013-07-05 15:51:01