New Talisman Gold Mines Ltd (ASX:NTL) has officially commenced its consented mining activities at its underground Talisman Gold Mine in New Zealand.
Notably, 5 tonnes of ore has been excavated from the face of the Mystery vein with ore sampling revealing grades of up to 24 g/t gold.
The company hopes that excavation deeper into the Mystery vein will provide further confidence as to its extent and potential.
New Talisman’s CEO Matthew Hill said: “The longheld belief that the Mystery vein continues in line with the main vein system provides the potential for a significant uplift in resources and ultimately reserves.”
READ: New Talisman Gold Mines pre-feasibility study doubles the value of Talisman Gold Project
Recently, New Talisman received the results of an updated pre-feasibility study (PFS) that more than doubled the value of its Talisman Gold Project.
The study increased the project’s pre-tax net present value (NPV) from NZ$15 million to NZ$36 million, resulting in an internal rate of return (IRR) of 118%.
Traffic Management Plan approval a major milestone
Notably, the Traffic Management Plan (TMP) has been approved by the Hauraki District Council, which allows the company to commence mining activities underground at the mine.
It also allows the company to extract up to 20,000 cubic metres ore from the Mystery and Maria Veins by drilling and blasting, and transport that ore to the processing facility.
Mystery vein has major upside potential
The company believes the Mystery vein has upside potential when looking to the Maria Vein for comparison.
Historically, the Maria main vein produced more than 3 million ounces of gold bullion over the historical mines 23-year life.