New Talisman Gold Mines Ltd (ASX:NTL) has been one of the best performers on the ASX this week, and with good reason.
The company is currently trading at $0.012, and investors could have snapped up shares at half this amount just last month.
Driving the positive re-rating is the new JORC resource, which this week doubled in size to 312,800 ounces at 21.98g/t gold.
The resource is hosted at the wholly-owned Talisman Gold Mine in New Zealand.
At the time of the new resource, Matthew Hill, CEO, commented:
"The grades established of up to 146.2 g/t for an average of 21.98 g/t places this deposit as one of the highest grade mineral resources in New Zealand and ranks in the top 5 worldwide.
"The dramatic increase in Dubbo resources ultimately proves our long-held belief that there is significant remaining ore at depth."
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.
A pre-feasibility study for underground mining at 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.
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.