Ann: QUARTER: NTL: Quarterly Activities Report to

• Release Date: 30/04/14 18:11
• Summary: QUARTER: NTL: Quarterly Activities Report to 31 March 2014
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					NTL
30/04/2014 16:11
QUARTER

REL: 1611 HRS New Talisman Gold Mines Limited

QUARTER: NTL: Quarterly Activities Report to 31 March 2014

ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED [ASX, NZSX: NTL, NTLOA]
FOR PUBLIC RELEASE
Quarterly Activities Report to 31st March 2014
New Talisman Gold Mines Limited (NTL) is pleased to present the quarterly
report on activities for the period ended 31st March 2013.
HIGHLIGHTS
- Health and safety management plan initiated
- Sale of ACP shares
- Test work underway with potential toll treatment facilities
TALISMAN GOLD PROJECT (100%) - Hauraki District, NZ
Health and Safety Management Plan
The Health and Safety in Employment (Mining Operations and Quarrying
Operations) Regulations 2013 were promulgated on 16 December 2013 in response
to recommendations from the Royal Commission of Enquiry into the Pike River
Mine disaster. The commission recommended several amendments to the
regulations to align New Zealand mining legislation with international best
practice. Foremost amongst the requirements of these regulations is for a
Health and Safety Management System (HSMS) which is supported by a
comprehensive hazard appraisal and risk assessment process and underpinned by
a series of prescribed Principal Hazard Management Plans which set out the
processes that the company will follow to ensure the safety of employees. It
is a further requirement that a draft of this HSMS must be provided to the
High Hazards Unit (HHU) two months prior to commencing operations at the
mine.
NTL is committed to ensuring the safety of its workforce and is fully
supportive of the new regulations. To date the company has conducted the
initial hazard appraisal and risk assessment and is in the process of
developing the risk mitigation procedures which will protect its employees
from exposure to harm. NTL has assembled a team of subject matter experts
particularly in the areas of mine ventilation and strata control to provide
specialist independent advice to the plan.
The Health and Safety Management plan satisfies all NTL's requirements to
enter and operate the mine and represents the last significant milestone on
NTL's pathway to production.
Sale of ACP shares
A net return of over 38% on the initial investment was made in February 2013
through the sale of the Armadale Capital PLC shares received in exchange for
the Company's interest in the Mpokoto project.
Toll Treatment
NTL has continued to progress discussions with a local treatment facility and
has completed initial testing of its ore to ensure no unwanted contaminants.
Further testing is currently underway to ensure suitability of the Talisman
ore with the plant's configuration. Following the completion of test work NTL
will be in a position to initiate deeper discussions on potential toll
treatment terms.
SUBSIDIARY COMPANY - COROMANDEL GOLD LIMITED (100%) [Not Listed]
Golden Valley Gold Project (100%) - Hauraki District, NZ
The proposed work  programme is under review while targets identified are
being verified.
Northland Base and Precious Metals Project (100%) - Northland region, NZ
Exploration planned for the current year is being based on results of
previous prospecting work by the company and the literature and data review
in 2013.
BROKEN HILL PROSPECTING LTD 'BPL' (21.7%) - NSW, AUSTRALIA [ASX/NZSX: BPL]
BPL's cobalt-pyrite ore at the Thackaringa deposits near Broken Hill (NSW)
could form the basis for sulphuric acid production. This important chemical
is mostly imported into Australia and is critical for processing of many
mineral commodities and for numerous industrial applications. BPL has
identified a growing Australian market for sulphuric acid which will add
considerable value to BPL's deposits when they are developed. Future
processing options could also benefit from electricity generated from process
steam and sale of the fine-grained iron (hematite) residual following cobalt
recovery.
BPL has announced a financial analysis which identified the potential for a
viable stand-alone project to produce 2 million tonnes per year sulphuric
acid production from roasting BPL's cobalt-pyrite.
Main findings of the study for a Broken Hill location include:
- CAPEX AUD768.5m (includes mining, concentrate plant, freight, roast/acid
plant)
- Sale price; AUD186/t sulphuric acid
- Revenue per year; AUD381.5 million
- Profit margin 30%
- Cost estimates are +/-50%
- Sensitivity analyses show an opportunity for significant value creation
when cost estimates are reduced by 40% from base case cost assumptions.

In addition, the project's cobalt value is considerable because ore mining
and processing costs prior to cobalt recovery are included in the cost
structure for sulphuric acid production. Based on a cobalt price of USD27,450
per tonne, the study also suggested that an additional value of the contained
cobalt within the deposits could be between USD822 million to USD1,300
million.

Matthew Hill
Executive Director
+ 64 9 303 1893

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About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) leading New Zealand
minerals development company with 1800 shareholders who are mainly from
Australia and New Zealand.
The company's flagship asset the Talisman mine holds a JORC compliant mineral
resource, a JORC compliant reserve and has been granted resource consents and
access arrangements for the initial phase of the project. The company is
currently initiating bulk sampling at Talisman and continues to advance the
development of the mine. New Talisman's wholly owned subsidiary Coromandel
Gold Limited holds a portfolio of high quality mineral interests and gold
properties in the Hauraki and Northland Districts of New Zealand.
New Talisman Gold owns 21.7% of Broken Hill Prospecting Limited, which holds
a cobaltiferous pyrite 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.newtalismangold.co.nz
End CA:00249945 For:NTL    Type:QUARTER    Time:2014-04-30 16:11:32