The annual report by New Talisman Gold Mines Ltd (NZX & ASX: NTL) for the 2018 said the company was now well mobilised to establish mining at the historic Talisman mine at Karangahake.
The site is now fully established, all services are in place and more than 700 metres of the tunnel network, leading to the Mystery Vein, have been rehabilitated, supported and services installed.
The annual report, released on Friday said NTL has also undertaken refurbishment of the Dubbo drive which is well ahead of schedule with less than 40m remaining before access to the BM37 zone is achieved.
The company undertook extensive upgrading of a significant portion of the mineral resource estimate to be compliant with JORC 2012 reporting standards.
Three modules of the Talisman Deeps resource area were released to the market between July and September last year covering Dubbo, Woodstock and the Talisman-Bonanza zones.
The revised mineral resource estimate more than doubled the measured, indicated and inferred resources from 229,000 ounces gold equivalent to 469,000 oz AuEq at an average grade of 15.1 grams/tonne AuEq. This includes 312,000 oz AuEq at an average grade of 21.98 g/t in the Dubbo Zone.
The scoping study demonstrates that the inferred resources below No 9 Level have “significant potential for economic extraction.” The report is currently being reviewed by independent experts.
The recently released prefeasibility study (PFS) demonstrated an increase in the net present value, (NPV) from $15.4 million to $35.9 M at a 9% discount rate with an IRR of 118%.
The report said a key ambition the company noted this time last year, was to build and expand the scope of works in prospecting and resource definition to allow upgrade of the PFS which was completed in 2013.
“At that time we were optimistic that, with the completion of the updated mineral resource estimate to JORC 2012 reporting standards, the resulting PFS would provide further improvements in what were already very solid projected returns and gold outputs.”
The updated PFS has now been completed with “significant uplift in grades, reserves, recoverable gold and in turn revenues and economics.
The company has engaged specialists to provide required data to allow the company to install a small-scale pilot plant once the ventilation fan is installed at the mine.
The ventilation fan is a key step to allowing blasting and frequent underground traffic movements and is expected to be installed in the next 60 days.
The report said NTL has applied most of its funds to development at Talisman with a total expenditure directly attributable to mine upgrades of over $1.79 M.
At the end of the financial year NTL’s balance sheet remains “in a very healthy position” with cash of $4.8 M, and the book value of net assets was $14.5 M.