Testwork reveals high recovery of gold

New Talisman Gold Mines
Limited

Responsible,
Environmentally
Sustainable Mining


ASX/NZX Code NTL
______________________

Commodity Exposure
GOLD and SILVER

Board and Management

Charbel Nader Chairman/Independent Director
Matthew Hill Chief Executive/ Managing Director
Murray McKee Independent Director
Murray Stevens Non Exec Director
Tony Haworth Independent Director
Jane Bell Company Secretary
Wayne Chowles Chief Operating Officer
Ash Clarke Chief Financial Officer


Capital Structure
Ordinary Shares at 20/03/2018 2,157m

Share Price
Share Price at 20/03/2018 (NZX) 1.6cps
Share Price at 20/03/2018 (ASX) 1.4cps



New Talisman Gold Mines Limited
ACN
Address 541 Parnell Rd, Parnell,
Auckland
Phone +64 27 5557737
Website www.newtalisman.co.nz
Email info@newtalisman.co.nz

Market Announcement
For Immediate Release
HIGHLIGHTS
• 75kg of ore from the target areas of Mystery and Dubbo
have been treated using Gravity Concentration and
Flotation methods;
• Testwork shows that 94% and 93.6% gold is recoverable
in the Dubbo and Mystery samples respectively using this
process;
• Only environmentally benign reagents are used to
achieve these recovery levels;
• Design of pilot plant is underway.

Testwo rk Ov erv iew
Gold at the Talisman Mine is hosted in three major quartz veins, namely, the Maria,
Mystery and Crown/Welcome. Of these three the Maria vein is the major
contributor containing approximately 91% of the mines 469,000 Oz AuEq Mineral
Resource within the Dubbo, Bonanza and Woodstock Zones. The average grade of
the resources in these zones is estimated at 22.0g/t, 23.6g/t and 6.3g/t AuEq
respectively with some 313,000 Oz lying in the Dubbo Zone. (please see
announcement of
https://www.asx.com.au/asxpdf/20170905/pdf/43m2d5v2hnybjc.pdf) Exploration
in this area has yielded some spectacular results, notably hole BM 37 which yielded
1.8 m @ 656g/t Au and 2080g/t Ag.
The Mystery Vein is a newly discovered vein that is highly prospective and a
potentially significant contributor to the future of the mine.
The metallurgical testwork was designed to deliver reliable and repeatable results
which will be used to inform engineering studies and cost estimates both for pilot
testwork during the Bulk Sampling Project and to inform design in an updated Pre-
Feasibility Study.
Testwork examined the processing path, post mining, as illustrated below:

There are four stages to the metalurgical process once ore has been mined and
crushed to a suitable feed size:
1) Grinding of ore to a suitable size to liberate gold;
2) Recovery of free milling gold in a gravity concentrator
3) Flotation of the concentrator tails to recover additional gold
4) Final recovery of gold from concentrate
Mining and
Crushing
Grinding
Gravity
Concentration
FlotationGold Recovery
METALLURGICAL TESTWORK RESULTS

P ro cessing - Gri nd ing

An important output from the testwork was to determine the optimal grind size to liberate
gold contained in the ore. Grinding (or milling) of ore takes place in a ball mill and is the most
expensive and energy intensive part of the process. The finer the grind size required the more
energy and time is taken up. Two grind sizes were tested here with ore initially milled to p80
passing 106m and again to p80 passing 53m.

P ro cessing – Grav ity Co ncentratio n

The milled product was pulped to 50 % solids and the resultant pulp was subjected to gravity
concentration via a Knelson Centrifugal Concentrator. The primary concentrate was upgraded
via careful hand panning to provide final concentrate mass yield approaching that of operating
Knelson installations. Final free gold concentrate (pan concentrate) was assayed via total
fusion to eliminate sampling error and nugget effect. Secondary concentrate (pan tailing) and
final tailings were dried, weighed and split for Au assay.
Results from this show that 61.3% of gold in Dubbo ore, and 81.9% of gold in Mystery ore can
be recovered directly through this process.
P ro cessing – Flo tatio n

Tailings from the gravity concentrator were pulped to 20% solids and subjected to single stage
flotation with the addition of copper sulphate, sodium isobutyl and Dow 250 which are all
environmentally benign reagents.
This process resulted in recovery of an additional 32.7% of gold from Dubbo ore and 11.7%
from Mystery ore, yielding overall recoveries of 94% and 93.6% respectively. Variance of
recovery rates between the two grind sizes was insignificant. This is comparable to the
recovery achieved from Talisman ore which has previously been treated using a cyanide leach
process. Importantly, the gravity and flotation process will produce inert tailings with low
sulphide levels.



Mining and
Crushing
Grinding
Gravity
Concentration
FlotationGold Recovery
Mining and
Crushing
Grinding
Gravity
Concentration
FlotationGold Recovery
Mining and
Crushing
Grinding
Gravity
Concentration
FlotationGold Recovery

P ro cessing – Go ld Reco v ery

On exit from the flotation tanks the concentrate can either be sold directly on the market or
the gold recovered on a shaker table and smelted.
These results are very pleasing with recovery rates
nearing those attained from similar tests involving
cyanide leaching. Essentially this means that, following
pilot testing, the company will be able to use only
environmentally benign reagents for gold recovery
which supports the company in its goal for the Talisman
Mining operation to be a responsible, environmentally
sustainable operation.
Chief operating officer and principal mining engineer Wayne Chowles said “The results of this
testwork provides the necessary hard data with which to proceed with forward planning and
takes us an important step closer to realizing the potential of this magnificent orebody”
Next Steps – P ilo t P lant D esign
Results from the testwork set out above will inform the design of a pilot plant layout which is
expected to be similar to that set out
in the process flow diagram
alongside. It is expected that the
plant will be modular and scaleable
allowing components to be added as
production volumes increase.
Further information on this will be
released to the market as it
becomes available.

New Talisman CEO, Matthew Hill said “ The completion of this testwork demonstrates the
successful ability to extract high grade concentrate from the existing orebodies without the
use of any hazardous chemicals. From a processing perspective this is about as clean and
environmentally friendly for treatment of gold ore as it gets with natural rock being reused as
backfill. This is a key milestone for the company and allows us to develop a saleable product
without the need for external parties.”

Matthew Hill
Chief Executive Officer
New Talisman Gold Mines Limited
Mining and
Crushing
Grinding
Gravity
Concentration
FlotationGold Recovery

__________________________________________________________________________
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2250 shareholders who are mainly from
Australia and New Zealand and has been listed since 1986. It is a leading New Zealand minerals
development and exploration company with a mining permit encompassing the Talisman mine, one of
New Zealand’s historically most productive gold mines. The company has commenced prospecting and
upgrading activities at the mine and advance the exploration project and increase its considerable
global exploration target into JORC 2012 resources.
Its gold properties near Paeroa in the Hauraki District of New Zealand are a granted mining permit,
including New Zealand’s highest-grade underground gold mine, a JORC 2012 compliant mineral
resource of over 427,000 ounces au/eq at an average above 15 gt AU/eq and a JORC compliant reserve
statement. The company owns 100% exploration permit Rahu, which lies along strike from the Talisman
mine of which 80% was recently acquired from Newcrest Mining. The company will shortly commence
exploration activities at Rahu.