Ann: MINE: NTL: Talisman Mine Maiden Ore Reserve

• Release Date: 05/09/13 10:30
• Summary: MINE: NTL: Talisman Mine Maiden Ore Reserve and Metallurgical Testwork
• Price Sensitive: No
• Download Document  13.98KB

					

NTL
05/09/2013 08:30
MINE

REL: 0830 HRS New Talisman Gold Mines Limited

MINE: NTL: Talisman Mine Maiden Ore Reserve and Metallurgical Testwork

4 September 2013
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED (NTL, NTLOA or NTLO)
FOR IMMEDIATE RELEASE
Talisman Mine Maiden Ore Reserve Statement
o 28,800 Oz Gold and 127,800 Oz Silver Ore Reserve for start-up phase of the
mine development underpinned by Pre-feasibility Study
o Analysis of Pre-Feasibility Study Conducted by International Consultancy

Metallurgical Testwork and sampling

o Recovery of visible physical gold and silver from metallurgical samples
using non chemical extraction equipment recently purchased
o Recent samples of Talisman ore tested by SGS showed up to 453g/t gold which
was processed.
New Talisman Gold Mines Limited (NTL) is pleased to announce the maiden JORC
compliant Ore Reserve for the Talisman Mine. Ore Reserves at the Talisman
gold project, based on an average in-situ cut-off grade of 1.7g/t, are 82,500
tonnes at 10.8 grams per tonne gold and 48.1 grams per tonne silver. Ore
Reserves are derived from and contained within, not additional to, the
Measured and Indicated portions of the Mineral Resource. This ore reserve
estimate reflects the outcome of the Pre-Feasibility Study conducted on Phase
1 of the Talisman Mine Project, and forms a solid basis for the company to
proceed with further project development.
A gap analysis on the Pre-Feasibility Study was carried out by Hatch Goba.
Hatch Goba is an employee-owned, multidisciplinary professional services firm
that delivers a comprehensive array of technical and strategic services,
including consulting, information technology, engineering, process
development, and project and construction management to the Mining,
Metallurgical, Energy, and Infrastructure sectors. Hatch has served clients
for over 80 years and has project experience in more than 150 countries
around the world. With over 11,000 people in over 65 offices, the firm has
more than $35 billion in projects currently under management.
Based on the Hatch analysis NTL are confident that the Pre-Feasibility Study
conforms to the requirements of a Technical Study as defined in the Joint Ore
Reserves Committee Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves 2004 (the JORC Code).
While the volatility in gold price has affected other juniors gold operations
particularly in New Zealand, New Talisman has continued to press forward.
This has paid off with these positive results showing the potential for an
accelerated development in getting Talisman into production. With the
development of an ore reserve New Talisman has continued to de-risk the
project on the path to bulk sampling and mining.
Significant progress has been made with regard to consents and we are
confident that consenting arrangements will be finalised in the coming
months.
The company has more recently entered into discussions with a major group for
the toll treatment of the Talisman ore and test work and sampling is underway
to test the suitability of the ore for processing by the potential treatment
plant.
Matthew Hill Executive Director said "We continue with the company's strategy
to reopen the Talisman mine and the recent analysis of the Pre-Feasibility
study by an international firm gives us great confidence in our pathway
chosen and phased approach toward production. This is the first Ore reserve
from Talisman since the mine was in full production many years ago.
With a difficult climate and depressed gold price felt by junior and major
gold companies alike NTL has been able to deliver positive outcomes to our
shareholders".
Ore Reserves
Mineral Resources are converted to Ore Reserves via the application of a
range of technical and economic factors (modifying factors) such as metal
prices, dilution and estimated recovery, in order to assess project
viability. Ore reserves are defined as follows:
Ore Reserves are those portions of Mineral Resources which, after the
application of all mining factors result in an estimated tonnage and grade
which, in the opinion of the Competent Person making the estimates, can be
the basis of a viable project, after taking account of all relevant Modifying
Factors. The relationship between Mineral Resources and Ore Reserves is
illustrated in the following graphic.

A technical report, titled "Ore Reserves Definition - Talisman Gold Project,
August 2013", in support of this maiden ore reserve statement has been
prepared in accordance with the JORC Code.  This technical report "Ore
Reserves Definition - Talisman Gold Project, August 2013", has been prepared
at the request of the board of New Talisman Gold Mines Limited with the
purpose of supporting the definition of a maiden Ore Reserve attributable to
NTL's Talisman Gold Project, based on the outcome of the Pre-Feasibility
Study completed in March 2013. The report is for the general information of
Directors and shareholders of the company, potential investors and for the
general disclosure of information to the market and is a Public Report as
defined under the JORC Code 2004.  The full report is available on the
company website.
Information on Mineral Resources has been sourced mainly from the companies
own exploration activities. The Mineral Resource estimate used as the basis
for conversion to Ore Reserve is set out in the public report titled
"TALISMAN GOLD RESOURCE INCREASES TO 205,000 OZ" released to the market on 11
May 2005 also available on the company website.
The Pre-Feasibility Study on which conversion of Mineral Resources to Ore
Reserves is based, has been carried out and determined a mine plan that is
technically achievable and economically viable; all material Modifying
Factors have been considered.
Mineral Resource and Ore Reserve categories are tabulated below.
Mineral Resources   Au Ag
 Category Tonnes Grade Ounces Grade Ounces
 Inferred 507,200 8.5 139,100 27.2 442,800
 Indicated 197,690 5.0 31,660 26.5 168,140
 Measured 212,500 5.0 34,000 27.5 187,900
 TOTAL 917,390 6.9 204,760 27.1 798,840

Ore
Reserves     Au Ag
   Tonnes Grade Ounces Grade Ounces
 Probable   19,600 8.5      5,400    36.9
23,300
  Proved       62,900    11.6        23,400       51.6    104,500
  TOTAL       82,500   10.8       28,800      48.1   127,800

Wayne Chowles, Principal Mining Engineer commented that "the rigorous
approach taken in the Pre-Feasibility Study has identified a robust course of
action to bring the Talisman asset to account. Upon initiating the bulk
sampling program currently under application we are confident in our ability
to develop a sustainable high grade mining operation. With areas such as the
Mystery vein relatively untouched, NTL has the flexibility needed in the
current climate for junior miners"

Metallurgical Testwork
The recent purchase of non-chemical recovery equipment to test samples
recovered from Talisman has given us further insight into the various
non-chemical processing routes which have resulted in recovery of sample
amounts of physical gold and silver using gravity concentration and flotation
techniques.
Samples were sent for chemical analysis at SGS New Zealand's Waihi Laboratory
with the following preliminary results:
METHOD FAA505 FAA505 FAA505 FAD505
LDETECTION 0.01 0.01 0.01 0.1
UDETECTION 100 100 100 10000
UNITS Au PPM Au PPM Au PPM Au PPM
44901 0.86 - - -
44902 >100 - - 162
44903 6.22 - - -
44904 5.4 - - -
44905 2.89 - - -
44906 7.85 - - -
44907 14.5 - - -
44908 18.3 - - -
44909 >100 - - 153
44910 >100 - - 190
44911 78.2 - - -
44912 7.93 - - -
44913 13.4 - - -
44914 >100 - - 358
44915 22.2 - - -
44916 >100 - - 148
44917 16 - - -
44918 >100 - - 453
44919 >100 - - 258
44920 >100 - - 103
Au Gold     LDETECTION Lower Detection Limit UDETECTION Upper Detection
Limit  PPM Parts Per Million (grams per tonne)   > Greater than
Analytical methods used by SGS New Zealand, according to gold content of
sample
FAA505 : Gold, Platinum & Palladium byAAS after Fire Assay, 50g, Lead
Collection
AD505 : Gold, Fire Assay, AAS, 50g, Over-Range
Further testwork is in process to ascertain recovery efficiency.
The purpose of the testwork was to identify an efficient grain size required
to extract and concentrate gold and silver using gravity and flotation
methods.  This information will assist in developing the most efficient route
for the processing of the ore once mining commences.
Matthew Hill
Executive Director
New Talisman Gold Mines Limited

Competent Person Statements:
The information in this announcement that relates to the Talisman Project
Pre-Feasibility Study and the Ore Reserve estimates were prepared by Mr Wayne
J Chowles, a Mining Engineer and member of the AusIMM. Mr Chowles is a full
time employee of New Talisman Gold Mines Limited and the author of the
Talisman Prefeasibility Study referred to in this release. He has sufficient
experience which 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 2004 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Chowles consents to the inclusion in this report of the matters
based on his information in the form and context in which it appears.
The information in this report that relates to exploration results,
exploration targets and mineral resources is extracted from the report
entitled "HERITAGE GOLD NEW ZEALAND LIMITED, KARANGAHAKE GOLD PROJECT,
EXPLORATION AND RESOURCE DEFINITION PROGRAMME - PHASE 2, TALISMAN MINE,
EXPLORATION PERMIT 40-081" created on 09/06/2006. The company confirms that
it is not aware of any new information or data that materially affects the
information included in the original market announcement and that all
material assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not materially
changed. The company confirms that the form and context in which the
Competent Persons findings are presented have not been materially modified
from the original market announcement.
 Hatch Goba Disclaimer
The Gap Analysis report was prepared "Hatch", for the sole and exclusive
benefit of New Talisman Gold Mines Ltd for the purpose of providing a GAP
analysis for the New Talisman Pre-feasibility Study (FEL2) and may not be
provided to, relied upon or used by any third party.  Any use of this report
by the Owner is subject to the terms and conditions of the Services Agreement
between Hatch and the Owner dated, including the limitations on liability set
out therein.
This report is meant to be read as a whole, and sections should not be read
or relied upon out of context. The report includes information provided by
the Owner, the Third Party Consultants and by certain other parties on behalf
of the Owner.  Unless specifically stated otherwise, Hatch has not verified
such information and disclaims any responsibility or liability in connection
with such information. In addition, Hatch has no responsibility for, and
disclaims all liability in connection with, the sections of this report that
have been prepared by the Owner or by the Third Party Consultants.
This report contains the expression of the professional opinion of Hatch,
based upon information available at the time of preparation. The quality of
the information, conclusions and estimates contained herein is consistent
with the intended level of accuracy as set out in this report, as well as the
circumstances and constraints under which this report was prepared.
However, this report is a GAP Analysis review and, accordingly, all estimates
and projections contained herein are based on limited and incomplete data.
Therefore, while the work, results, estimates and projections herein may be
considered to be generally indicative of the nature and quality of the
Project, they are not definitive. No representations or predictions are
intended as to the results of future work, nor can there be any promises that
the estimates and projections in this report will be sustained in future
work.
Disclaimer
Although New Talisman Gold Mines Ltd (NTL) commissioned the geological
information and mining data referred to in this presentation, NTL does not
guarantee or otherwise warrant the accuracy or currency of such information
or data.  Further, no representation is given or warranty is made in respect
of any future performance of the share price of shares in NTL or any company
associated with it. This document is not intended to, and does not, represent
an offer of any securities.
The terms geological potential, potential, exploration target and target
where used in this report do not constitute and should not be interpreted as
Mineral Resources or Ore Reserves under the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code 2012).
The potential quantity and grade is conceptual in nature. There has been
insufficient exploration to estimate a Mineral Resource or an Ore Reserve and
it is uncertain if further exploration will result in the estimation of a
Mineral Resource or Ore Reserve.
-----------------------------------------------------------------------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:00240719 For:NTL    Type:MINE       Time:2013-09-05 08:30:17