Ann: QUARTER: NTL: Quarterly Activities Report 30

• Release Date: 31/07/13 15:53
• Summary: QUARTER: NTL: Quarterly Activities Report 30 June 2013
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NTL
31/07/2013 13:53
QUARTER

REL: 1353 HRS New Talisman Gold Mines Limited

QUARTER: NTL: Quarterly Activities Report 30 June 2013

ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL]
FOR PUBLIC RELEASE
Quarterly Activities Report to 30th June 2013
New Talisman Gold Mines Limited is pleased to present the quarterly report on
activities for the period ended 30th June 2013.
HIGHLIGHTS
- Placement to raise A$543,510 completed
- Selected Talisman rock specimens contain exceptionally high gold contents
(to 1% Au)
- Broken Hill Prospecting Limited investigates new sulphuric acid venture
CORPORATE
A share placement by Cannacord Genuity Pty Ltd raised A$543,510 at a price of
A$ 1.1 cents per share. The funds were used for due diligence on the Mpokoto
project and are continuing to be applied to NTL working capital.
TALISMAN GOLD PROJECT (100%) - Hauraki District, NZ
During the period NTL commissioned a Feasibility Study on the Talisman
Project. 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. The samples will be subjected to a
rigorous programme of metallurgical test work.
Initial planning for this stage of the project is now complete, a budget and
project schedule have been compiled and presented to the NTL Board.
The work programme consists of three parts: establishing the surface
infrastructure required for underground operations, refurbishment of old 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.
In order to facilitate smooth initiation of the project the company's
activities are now focussed on recruitment and procurement. NTL has been
fortunate to retain the skills of an experienced mine manager who has
significant exposure to operations similar to that envisaged at the Talisman
Mine. Additionally the company has sourced suppliers of appropriate machinery
and key consumables and expects to begin locking in supply contracts shortly.

Five strongly mineralised rock specimens, each weighing 250g to 500g, were
selected visually from BM37 Bonanza zone ore grade material previously
collected from the Talisman mine. Each was assayed at SGS New Zealand's Waihi
laboratory, to assist a geometallurgical study of the ore. The
geometallurgical specimens yielded the following results:

ROCK Au Au(R) Ag Ag(R) Notes:

  SAMPLE PPM  PPM PPM  PPM  Au gold
BIN 1-6 2130 - 3660   3690  Ag silver
 PRA 2-1 882 885 >4000 -  (R) repeat analysis
 PRA 2-2 300 - 2540     -  PPM parts per million (grams per tonne)
 PRA 4-1 766 755 2670 -  % percent
 PRA 4-6 1.02% 1.05% >4000 >4000  > greater than

An independent geometallurgical report on these rock specimens suggests
testwork to assess the recoverability of gold via gravity concentration and
flotation methods.
The company is progressing discussions with various companies in Australia
and New Zealand for the possible toll treatment of ore.
Negotiations with consenting agencies for planned low-impact bulk sampling
are progressing according to plan and NTL has received positive feedback.
SUBSIDIARY COMPANY - COROMANDEL GOLD LIMITED (100%) [Not Listed]
Golden Valley Gold Project (100%), - Hauraki District, NZ
The Golden Valley exploration permit adjoins Newmont Waihi's mining licence
and is prospective for additional discoveries of gold deposits similar to the
nearby Martha, Favona and Correnso ore bodies. Exploration at Golden Valley
has previously been hampered by barren post-mineral cover obscuring the rocks
that host the epithermal gold deposits in the Waihi Gold District.
The company has carried out geochemical sampling programmes designed to
detect anomalous geochemical signatures in soils that lie above buried
mineralisation. The results of these programmes have been used to target
areas for seismic surveys to detect buried but near surface structures
favourable for gold mineralisation.
The seismic surveys have detected features interpreted as potentially
mineralised structures associated with topographic highs in the andesite
rocks that host gold deposits elsewhere at Waihi. These observations have
been integrated with the company's geochemical and aeromagnetic data and a
phased drill programme is planned to test the surface soil geochemical
anomalies and structures from seismic surveys.
The drilling results will provide essential information on the geochemistry
and stratigraphy of the rocks encountered and allow more precise modelling of
potentially mineralised structures for further exploration.
Northland Base and Precious Metals Project (100%) - Northland region, NZ
Wholly owned subsidiary Northland Minerals Ltd has reviewed historic
exploration data for its 1188 hectare Exploration Permit in Northland, New
Zealand.
The permit covers an area of ancient seafloor basalt, intrusive dolerite and
associated seafloor sediments, (Tangihua Volcanics) that have potential for
the discovery of gold-rich base metal massive sulphide deposits. This deposit
style is considered analogous to the "black smoker" base metal and gold-rich
deposits currently being researched off the north east coast of New Zealand,
often referred to as volcanogenic massive sulphide (VMS) deposits. Overseas
examples of this style of mineralisation include Rio Tinto in Spain,
Cyprus-style on Cyprus Island, and Mt Lyell in Tasmania.
Several copper occurrences have been mined in the past but no modern
exploration has been undertaken in the area since the 1970's. Previous
reconnaissance sampling by Northland Minerals showed that this deposit style
can host high grade mineralisation. Two grab samples of mullock from the
Copper Queen Mine near Parakao demonstrate this potential. The first sample
comprised massive sulphide that contained 17.2g/t Au, 11.41% Cu, 28.2g/t Ag
and 0.42% Zn. The second sample of highly oxidized massive sulphide returned
grades of 21.68g/t Au, 47.41% Cu, 48.6g/t Ag and 0.08% Zn.
The Company considers there is good potential to discover economic VMS
deposits in the permit using modern exploration techniques in this
underexplored region of New Zealand.
BROKEN HILL PROSPECTING LTD 'BPL' (21.7%) - NSW, AUSTRALIA [ASX/NZSX: BPL]
During the quarter BPL formed a subsidiary company (Broken Hill Chemical Pty
Limited, 'BCL') as a vehicle for a proposed new chemical business to produce
sulphuric acid from the company's pyrite deposits. BCL is seeking a partner
to undertake due diligence, metallurgical review and feasibility studies with
the intention to develop a world-class industrial project based on sulphuric
acid production from pyrite concentrate prepared from BPL's extensive
cobaltiferous pyrite mineralisation. Cobalt could be recovered from hematite
ash during the process and residual hematite could also add to project value.

Australia is a net importer of sulphuric acid which is required in many
phosphate fertiliser, mineral processing and industrial applications. Fine
grained hematite ash is widely used in cement manufacture to increase
strength and abrasive resistance of concrete.
BPL has commenced investigations into the future production of electricity
during the pyrite roasting process. Steam from exothermic heat generated by
pyrite concentrate 'roasting' and sulphuric acid production could be used for
electric power generation to operate future on-site processing and
infrastructure. Sale of surplus, sustainable, zero-carbon energy generated by
this process could also add considerable value. For a typical 2,000 MTPD
sulphuric acid plant between 18-24MW of electricity could be generated.
Broken Hill Prospecting may benefit by recent DR Congo announcements. The DR
Congo government has announced bans on exports of cobalt (and copper)
concentrates to commence after 31 December 2013. They have also increased
export taxes on concentrates from US$60/tonne concentrate to US$100/tonne
concentrate. These measures are having a significant effect on cobalt prices
and metal markets. The London Metals Exchange (LME) cash buyer cobalt price
has increased from about US$25,000/tonne to US$31,000/tonne during the
quarter.

MPOKOTO GOLD PROJECT
NTL will not exercise its earn in option on the Mpokoto Gold project to spend
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$250,000 convertible loan.

About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (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 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 both the ASX and NZSX (Code: BPL).
More about New Talisman Gold at www.newtalisman.co.nz

 Competent Person Statement s
(1) The information in this report that relates to gold and silver
exploration activities and  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  managing director of Up Minister Ltd, an independent
geological consultancy company. Mr Atkinson 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 2004 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.

 (2) Exploration activities and results contained in this report on Broken
Hill Prospecting Limited 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. He 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.
End CA:00239155 For:NTL    Type:QUARTER    Time:2013-07-31 13:53:50