New Talisman Gold Mines Ltd (ASX:NTL) shares increased more than 23% to $0.016 yesterday as the company delivered a milestone.
Extraction of high-grade ore has commenced at the Talisman Gold Project in New Zealand.
The ore is being stockpiled while preparation for treatment options are being reviewed.
Matthew Hill, managing director, said: “With the commencement of removal of gold and silver bearing material we have reached yet another milestone.
“This comes as we continue well on our way to reestablishing the Talisman mine.”
READ: New Talisman Gold Mines ahead of schedule in New Zealand
New Talisman is making progress with refurbishing the historical underground workings.
Remedial work on the underground bridge is complete and this has provided vehicle access into the workings.
Works have progressed more than 600 metres into the mine and are at the second bypass.
Unique challenges posed by historic workings
This area forms the intersection between several old tunnels and has posed some unique challenges.
When removing the existing sets in one area, it was apparent that a septum separating the 8 Level Drive from an old rise over the drive, had collapsed.
Working through the area involved making an artificial septum from timber.
This was the final step to make Number 8 level drive fully trafficable all the way to the Mystery workings.
The project remains on schedule to begin blasting on the Mystery vein in early 2018.
Accessing two further levels
New Talisman has identified two locations through which access to 9 and 10 levels may be achieved.
A detailed geotechnical assessment of these areas is underway.
Access will allow the team to undertake sampling in highly prospective areas of the high-grade Dubbo Zone.
Representative samples of ore from Mystery and Dubbo veins have been sent for test work in South Africa.
This will assist in final design of the plant to ensure metal recovery is fit for purpose at effective rates.
Hill said: “Various treatment options are being evaluated which will provide for production of a high-grade concentrate.
“We are expecting to have the final processing route at around the same time as Mystery comes online.”
READ: New Talisman in transformational deal acquires Newcrest New Zealand
Talisman is one of New Zealand’s historically most productive gold mines.
New Talisman also owns the Rahu exploration permit, which is along strike from Talisman.
The company recently acquired the remaining 80% of this project from Newcrest Mining (ASX:NCM) and will shortly commence exploration.