Quarterly Activities Report to 31 Mar 2021

GENERAL

Fri, Apr 30 2021 11:48 am

New Talisman Gold Mines Limited (NTL) is pleased to present a report on activities for the quarter ended 31 March 2021.

HIGHLIGHTS
• NZ based treatment options identified for processing.
• Coromandel Gold identify additional assets on the NZ West Coast.
• Coromandel Gold has completed Vanuatu due diligence and transaction documents being finalised.
• Broken Hills Historic Mine Limited acquisition progress update.
During the quarter the Company was focused on completing due diligence on the Broken Hills and Vanuatu acquisitions, and identifying a economically viable processing route.
A number of options have been identified for processing ore in NZ. The next steps over the coming weeks will be to test up to 100t sample (in batches of 5-10t) at one or more facility to determine recovery rates and economic feasibility prior to entering commercial agreements. The capacities of each facility range from 1tph up to 10tph with the largest outlined further below.
New Talisman Gold Mines Limited and Broken Hills Historic Mine Limited are currently working with Mint Innovation Limited (a New Zealand company) to determine the feasibility of using their novel technology for gold recovery using microorganisms. Mint’s pioneering technology is cyanide free and enables precious metal recovery from challenging materials in an environmentally responsible manner. NTL is engaged with Mint Innovation, (who have previously worked with Broken Hills), to determine suitability of their solution in respect of both Talisman and potentially Broken Hills. Mint Innovation have indicated they have capacity for batch treatment as of July.
In addition, during the quarter discussions progressed with a major New Zealand industry group that currently have immediate capacity to process an initial batch of up to 100t of ore and a proposal has been put forward which provides the potential for developing jointly or separately a permanent or mobile treatment facility, following initial feasibility which is expected to commence in the near term for testwork.
In the NZ mining industry, small scale operations (including those that have restricted extraction approvals) have the same stringent health and safety requirements as major operators and therefore are difficult to make economic at low volumes. This highlighted the need for economies of scale while Talisman is at the bulk sampling phase to warrant a full-scale solution capable of processing ore at both bulk sampling and future peak mine volumes (when approved). The acquisition of Broken Hill Historic Mine Limited (BHG) would lessen development risk by having multiple sources of ore.