PFS and Ore reserve update provides significant results
NTL
26/06/2018 11:18
MKTUPDTE
PRICE SENSITIVE
REL: 1118 HRS New Talisman Gold Mines Limited
MKTUPDTE: NTL: PFS and Ore reserve update provides significant results
HIGHLIGHTS
o Value of Talisman project more than doubles on results of updated
Pre-Feasibility Study, NPV9% increases from $15m to $36m;
o Recovered gold increases by 50% to 51,000 Gold Equivalent Ounces;
o Direct operating costs to produce an ounce reduced to $710 NZD per
ounce ($490 USD/oz)
o Ore Reserves increase by more than 40% from 30,500 to 44,100 Gold
Equivalent Ounces;
o Independent valuation confirms robustness of the project with a value
of between NZ$8.4M and NZ$21.4M
New Talisman Gold Mines Limited is pleased to announce the results of the
updated Pre-Feasibility Study on the Talisman Gold Project. The results of
the study, as set out in this announcement, reaffirm that the establishment
of a highly profitable, small-scale operation, focused on extraction of the
higher confidence Measured and Indicated Resources accessible from 8 Level,
should provide for an excellent return on investment.
CEO Matthew Hill stated "The updated study demonstrates the robustness of the
project economics, showing an IRR of 118% demonstrating the significant value
to investors of this world class mine. With a scoping study on Talisman Deeps
being finalised in the coming days on the high grade resources and activity
at the mine ramping up we are starting to see the results of the teams hard
efforts. "
In summary, revision of the 2013 Pre-Feasibility study in light of new
information has demonstrated an increase in the Net Present Value, (NPV) from
NZD15.4m to NZD35.9m at a 9% Discount Rate. The key drivers for this increase
in value are discussed below:
1. Increased ounces available for extraction - this is a result of the
2017 (JORC 2012 compliant) Mineral Resource Estimate which saw gold
equivalent ounces in the Measured and Indicated categories increase by some
18,000 ounces. These are included in the mining plan which has seen an
increase in expected gold production of some 18,800 Oz AuEq.
2. Increased mine life - on the back of the increased ounces life of
mine is extended by a year giving a current expectation of 6 years for this
first stage of the larger project;
3. Grade - Run of Mine grade, on a gold equivalent basis, has increased
from 11.2g/t to more than 27 g/t.
4. Breakeven gold price reduced substantially to $820 NZD per ounce.
5. Unit operating costs significantly reduced with costs to extract the
ore and bring it to surface (C1 cost) of NZD 583 per ounce and cost to
produce an economic ounce of gold (C2 cost) being NZD710 per ounce. With the
NZD gold price currently sitting at NZD1882 per ounce this demonstrates the
robust nature of the project.
So there you have it ...bang on shedule and more coming
Not sure that RAHU potential has even been brought into full focus yetthis is still all the mistery vein at Talisman Deeps as far as I can tell. AIMO please DYOR.
