Quarterly Activities Report 30 Sept 2018

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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 Stevens Non-Executive Director
Tony Haworth Independent Director
Jane Bell Company Secretary
Wayne Chowles Chief Operating Officer



Capital Structure
Ordinary Shares at 30/10/2018
2,164m

Share Price
Share Price at 30/10/2018 (NZX) 1.6cps
Share Price at 30/10/2018 (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
• Underground Mining related activities at Talisman
resume for the first time since 1992;
• Mystery vein: - blasting, excavation and stockpiling of
high-grade ore commenced;
• Extraction and stockpiling of ore from stopes and old
workings continues with 40 tonnes extracted in the last
two weeks.;
• Traffic management plan approved by HDC;
• Independent review of Resource estimate complete;
• Pilot plant installation commenced; and
• Applications for Rahu field work lodged.

Following on from the previous successful quarter, a significant number of key
milestones were achieved which resulted in the commencement of the mining
activities at the Talisman Mine.
This quarter marked a milestone for the project as it is the month that the
Talisman became a mine again in the full sense of the word. It was noted
previously that the primary fan had been delivered to site and the 250kva
generator had been delivered to Waihi, these have now been installed and
commissioned. With these in place the company undertook the first blasts in the
Talisman mine with the initial blast taken on the Mystery Vein.
True to the company’s commitment to environmentally sustainable mining,
sound emissions from the heavily silenced fan are virtually imperceptible beyond
the immediate mine site.
Matthew Hill said “as New Zealand’s oldest incorporated and listed gold mining
company, we are pleased to have finally commenced underground mining
activities under our resource consent and reopened one of New Zealand’s most
productive mines which is coming up to its 125
th
anniversary of operations. With
the granting of the TMP we are now able to blast and transport the ore offsite for
stockpiling and ultimately processing.”
Quarterly Activities Report to 30 September 2018

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TALISMAN MINE PROJECT
The key milestones achieved at the Talisman mine during the quarter include: -
• The Traffic Management Plan (“TMP”) was approved by HDC and the company has commenced
activities under the resource consent granted by Hauraki District Council (“HDC”) in 2013. The
TMP allows transporting of ore from the mine offsite with one blast event per day which will
continue for 2+ years as the definitive feasibility study is completed.
• Commissioning of silenced 250KVA generator and control room is complete and the operation
now has reliable power supply to the main ventilation fan and other site equipment.

• Installation and commissioning of the primary ventilation fan is complete. This fan, mounted
above the airlock and connected to the mine via a reinforced concrete tunnel, is fitted with world
leading silencing equipment to reduce noise emissions to conversational level. The fan is capable
of delivering sufficient air to maintain a healthy respirable atmosphere underground while up to
three diesel powered loaders are deployed in the workings, which has significantly increased the
productivity of the mining team.


• Following the final metres of rehabilitation into the Mystery zone the company was able to
commence the maiden blast at Mystery. Approximately 8 tonnes of vein material has been
extracted which has provided promising results. A resue mining method – blasting the vein
material and surrounding waste in separate stages - is being tested with encouraging results from
the first blast. This system will enable the vein material to be trammed separately from waste
material which will maximise the grade of ore delivered to the plant and reduce transport costs.

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The blasts which have been undertaken to date have provided no measurable vibration or noise
at surface.

Samples taken from ore generated by the first blast were independently analysed for gold and
silver content at the SGS laboratory in Waihi and yielded an average grade of 7.1g/t Au as
announced on 20/09/2018.
(Please see https://www.asx.com.au/asxpdf/20180920/pdf/43yhcd15zcxsp5.pdf
)
These results are in line with expectations and consistent with the range of grades in this section
of the Mystery Vein. This is in the same area where recent check sampling of ore exposed at the
drive face yielded grades of up to 40 g/t Au as announced to the market on 31 March 2018 (please
see https://www.asx.com.au/asxpdf/20180508/pdf/43tvlpmv420f4f.pdf
) While considerably
more work is required to understand the full extent of this highly prospective vein system these
results are encouraging and represent a very positive first step in this process.
• Work has commenced on clearing ore from a historical stope on the Maria vein in the Talisman
zone. Over 40 Tonnes of ore has been extracted from this area over the last two weeks alone and
has been stockpiled ready for transport offsite to the pilot plant facility once commissioned. This
ore has been extensively sampled during loading and we await the results. The amount of ore
present in this area is uncertain and further extraction and stockpiling of the ore is dependent on
samples taken over the last week. Once removal of rock from this area is complete vehicle passage
further into the mine will be possible and will allow accelerated development on the Mystery vein.

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• Preparation for installation of the underground power cable and auxiliary fan is underway. This
fan is on site and will be transported to position at the Keillors Crosscut junction to pump air into
the Dubbo Drive. Upon completion there will be accessibility for vehicles from the Portal all the
way through to Dubbo.

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• Rehabilitation of old workings through to the start of the BM37 zone at Dubbo was completed
during the quarter and, once vehicle access is attained, loading of rock from the base of the BM37
rise can begin. Clearing of this rock will provide access to the high-grade Dubbo Zone of the Maria
Vein. This is the site of the last mining by previous owners in the late 1980’s and was identified by
borehole BM37 which assayed 656 g/t Au over 1.8m including 1154 g/t Au over 1.0m. Sampling
in this area has previously yielded results exceeding 1% gold (over 10,000g/t), please see
https://www.asx.com.au/asxpdf/20130705/pdf/42gx44jq96lzrs.pdf

• Maintenance of the mine road was completed in September and has significantly improved the
drainage capability and trafficability of the road.
• The shaker table and concentrator that form part of the pilot processing plant, have arrived and
are currently being installed offsite. Both the shaker table and gravity concentrator is in the
process of being commissioned and will be tested with a batch of ore which has been crushed to
the free gold size while we await the arrival of crusher and grinder. A number of offsite locations
close to the mine have been identified which are suitable for the plant. It is expected the plant will
be fully installed and operational with the crushing and grinding circuit by end of November with
first production of gold from stockpiled ore by year end.
While the capacity of the pilot plant is relatively low the aim is to replicate the recovery rates
which were achieved using a similar flowsheet in the testwork carried out in South Africa in
February 2018 (please see https://www.asx.com.au/asxpdf/20180322/pdf/43sn63s00fjnz6.pdf
) .
Once recovery rates are confirmed it is likely that a larger plant, suitable for the longer-term needs
will be acquired, dependent on other options.
• A detailed Independent review of the Mineral resources estimate was completed during the
quarter which confirmed the 2012 JORC compliant resource of 469K oz AuEq at an average grade
of 15.1g/t. This makes the Talisman Mine the highest grade underground active mine in NZ for
which grades and resources have doubled in just over a year. The report concluded:
In reviewing NTGM’s MREs Geos Mining has found that the estimations, the data and the resource models
they are based on, meet the guidelines set out in the 2004 and 2012 JORC Codes and have no serious errors
or issues associated with them.
Further work is being carried out on the remaining data for the fourth module relating to Talisman
deeps which will be included in the growing database as works are carried out. With significant
development into Mystery and Dubbo, the substantial amount of data and knowledge of the
orebody acquired from these activities will support a review of the Mineral Resources Estimate
and upgrade of remaining areas to JORC 2012 standards by the end of Q1 2019.
• With mining operations having commenced under the company’s existing resource consent, the
company has initiated a planning assessment of resource consent requirements to support the
longer-term future of the mine in line with the prefeasibility study recently released.
• Applications for access and consent to initiate fieldwork at the Rahu Project have been lodged
with the relevant authorities

Corporate
During the quarter the company continued discussions with a number of parties that have approached
the company for treatment and offtake of the high-grade ore as well as parties interested in acquiring
the concentrate product produced from the plant. With blasting and extraction having commenced
and the pilot plant being installed tuned and subsequently being commissioned, once the recovery
rates are confirmed the company will be better positioned to take these discussions to a commercial
conclusion. It is expected by the end of Q1 2019 we will have sufficient data from the pilot plant to

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determine the maximum volumes of concentrate and bullion produced which can be produced
directly from the pilot plant and the recovery rates achieved.

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 recently reopened the Talisman mine and commenced blasting
and extraction under the resource consent granted. The company continues to progress its prospecting and
upgrading activities at the mine to further advance the mining project to 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
one of New Zealand’s highest-grade underground gold mines, a JORC 2012 compliant mineral resource of over
469,000 ounces AuEq at an average above 15 g/t AuEq and a JORC compliant reserve statement. The Company
owns 100% of the Rahu exploration permit, 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.