New Talisman Gold Mines (ASX:NTL) has approved the direct expenditure of its NZ$2.2 million budget for mine related activities at its 100% owned Talisman gold mine in New Zealand.
Equipment has begun to be purchased and will be mobilised to site from today.
Activities to be undertaken include site establishment and security, various installations, machinery mobilisation and underground mine refurbishment works.
Matthew Hill, CEO, commented: “We are delighted to finally begin operations which we hope will bring this historically productive New Zealand mine once again on the road back to full production.
“We are very excited by the technical developments on the deeps which provide for the potential to significantly increase the upside and extended mine life to our future operations.”
Background
New Talisman retains a 100% interest in the Talisman Mine and a 20% interest in the Rahu Project which is immediately to the north of the Talisman mine in New Zealand.
A pre-feasibility study for underground mining at the Talisman confirmed an initial phase one life of mine of 5 years to generate NZ$68.2 million in revenues and a cash surplus of NZ$23.4 million.
During August 2016, the company commenced an exercise to quantify gold mineralisation thought to be hosted at depths, which is known as Talisman Deeps.
A review of data to date provides supporting evidence of Talisman Deeps to increase gold resources below 15 Level of the historical mine.
The company also has an agreement with Newcrest Mining Ltd (ASX:NCM) at Rahu for Newcrest to spend up to $5 million on an exploration permit.
Talisman Deeps update
The significant body of works on the Talisman deeps project is nearing completion.
Following the initial technical work such will be peer reviewed to ensure conformity with JORC 2012.
The work being undertaken provides significant potential for expanded operations at the extensions of the mine and are likely to be complete by the end of the June quarter.
Mine site activities
The activities being undertaken include:
- Site establishment and security;
- Installation of ventilation management systems;
- Installation of water storage facilities;
- Installation of compressed air supply;
- Installation of generator;
- Upgrades of water pond;
- Mobilisation of bogger and digger to mine; and
- Refurbishment of level 8 from portal through to Mystery vein location.
Terra Firma Mining Ltd, an experienced local company, has been engaged to provide civil engineering services to the project.
The company’s knowledge and experience operating in the local mining and underground construction sectors, coupled with a strong track record in health and safety management, will be of considerable value in the safe and efficient execution of the project.