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New Talisman buoyed by resource

New Talisman buoyed by resource
New Talisman has declared a doubling of the resource in its historic Karangahake Valley underground mine near Waihi.

From penny dreadful to potentially wonderful – that’s the trajectory that long-time basementdwelling minnow New Talisman Gold Mines (NTL on NZX and ASX) has taken since declaring a doubling of the resource in one part of its historic Karangahake Valley underground mine near Waihi.

The dual-listed company called a trading halt on July 12 to announce that the JORC 2012-measured gold resource in its Dubbo nodule, the first of four currently being reassessed, had come in at double its 2004 assessment.

With grades up to a dizzying 146.2 grams per tonne at a lip-smacking average of 21.98g/t, the resource now amounts to 312,800oz, 102% more than previously thought.

NTL chief executive Matthew Hill told Mining NZ that New Talisman could be “one of the five richest underground mines in the world”.

The company has a resource consent from the Hauraki District Council to extract 20,000 cubic metres of ore a year, and underground development work has begun even as assessment work on the three other Talisman Deep nodules continues.

Hill said he was confident these too would show considerable increases in the resource over earlier estimates.

NTL is fully funded until 2020 to complete its prospecting and bulk supply work in preparation for going into production, while an upgrade to the existing feasibility study is under way.

The announcement to the New Zealand and Australian stock exchanges sparked a surge in the NTL share price which, after sitting for most of the past 30 years in the penny-dreadful drawer at well
under a cent a share, was by late August this year trading at 2.3c – 2.7c.

NTL had tickled the interest of investors in November last year when it had 50 tonnes of ore from the Dubbo area of the mine processed at Newmont’s (now OceanaGold’s) Waihi complex, from which it returned 64.5oz of gold and 227.3oz of silver at respective recovery rates of 52.56g/t and 150.01g/t.

This ore had been sitting outside near the mine entrance for years awaiting an agreement with the district council to haul it out over the council road.

Road access permission has since been granted for the full mining scheme which, consent-wise, is closing in on a start to full-scale production.

Meanwhile, another goldmining minnow, Aorere Resources, has missed out on the Nevada goldmine it was stalking, and is looking at other potential buys, according to chief executive Chris Castle.

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