It's heartening to see some real movement in NZD adjusted silver...

It's heartening to see some real movement in NZD adjusted silver prices. It's close to a 3 year high, not since late 2013 have we seen anything like it at about NZ$27.50 per ounce.



Gold is at over a 3 year high in NZD terms too at about NZ$1865 per ounce. This is great for NTL:



Below is a table of potential NTL bulk sampling revenue (not taking into account costs mind you). It is based on the maximum annual amount of material allowed to be extracted under the current resource consent.I have multiplied the g/t of gold by 3 to calculate the potential g/t of silver. Talisman grades seem to conform to roughly 1 gold for 3 silver.

The recovery grade is based on the calculations on page 8 of the rights issue document (http://www.asx.com.au/asxpdf/20160520/pdf/437cwgdsbsns70.pdf).

The other potential average recovery grades are based on the information in the rights issue document about the various grades found throughout the Talisman mining permit area.

Some of the grades are clearly from very isolated test samples, but you should be able to see that the recovery may be much higher than the conservative 10.82 g/t used in the bulk sampling calculation. I note that when NTL processed some of the stockpiled ore from Talisman it averaged 42.56 g/t. Based on that, NTL is consented to potentially bring down $50m worth of ore every year through its bulk sampling programme!

Hopefully the bulk sampling programme can get underway so we can test out some of these calculations