Quarterly Activities Report 30 June 2019

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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 31/07/2019 2,417m



Share Price
Share Price at 31/07/2019 (NZX) 0.7cps
Share Price at 31/07/2019 (ASX) 0.8cps



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
QUARTER HIGHLIGHTS
• Consent obtained for operation of pilot processing plant
• Plant commissioned and metallurgical testwork
underway
• Successful capital raise of 1.73M
• First gold and concentrate produced from pilot plant
• Terra Firma proposal under review

The first quarter of the 2019 financial year was another successful one for the
company which saw access being secured to the Dubbo rise and consenting and
commissioning of the pilot gold processing plant.
With the commencement of the final stage of metallurgical testwork resources
are focused on the processing of high grade ore to provide the necessary data for
larger scale plant design.
During the quarter discussions advanced on a commercial proposal to treat
Talisman ore. A formal term sheet has now been received by Terra Firma Limited
and is currently under review by the board. An update will be provided to
shareholders in due course.


Figure 1 – precious metals and other heavy minerals being separated from host rock
Quarterly Activities Report to 30 June 2019

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TALISMAN MINE PROJECT

The Diagram below shows the stages of development and evolution the mine has taken since Heritage commenced exploration activities through to mine
development and planning.

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Metallurgical Testwork Pilot Plant
Commissioning of the pilot processing facility, following grant of resource consent in early July, is
complete and processing of the high grade samples taken from the Talisman Mine has begun to
produce a bullion and concentrate product.
The plant consists of a small crusher to reduce run of mine ore to 10mm which is then fed into a rod
mill where it is ground to a fine powder to release the gold from the surrounding minerals. The ground
ore is then fed through a high speed centrifuge which uses the effect of gravity to separate the heavier
particles of gold and other metals from the lighter silica and produces a rough concentrate. The
concentrate is then passed over a shaker table to further separate the metals.
This plant is a scale model of the envisaged commercial facility and seeks to replicate the output from
testwork carried out in South Africa in early 2018 which indicated that adequate gold recovery can be
achieved through a gravity only circuit and that the resultant tailings will be inert and can be disposed
of in a number of ways without any environmental consequences. It is likely that these tailings will
have a commercial value through use in industrial applications which will contribute towards the
overall value of the project while at the same time relieving the company of the cost of disposal.
The components that make up the plant are functioning well, the mill is achieving the desired grind
size and good separation of metals and gangue minerals through the concentrator and shaker table is
being achieved. While much work remains on optimizing the performance of the plant and assessing
whether target recovery rates will be achieved, this is a significant step for the company on the path
of developing the Talisman Mine.
Testwork will concentrate on assessing a number of key factors associated with the gravity separation
process, namely:
• Reliably achieving economically viable recovery of gold and silver;
• The effect of various grind sizes on the precious metal yield;
• Efficiently removing sulphide minerals from the ore to achieve an inert waste product suitable
for industrial applications.
It is expected that the test phase will be completed by September 2019 and the output will provide
data which will be sufficient to support requirements for a long-term facility while high grade batches
of ore are processed through the pilot plant.

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Underground operations
The quarter saw completion of the reopening of the BM37 rise in the Dubbo Zone. The Dubbo area
has hosted some of the highest-grade gold found in NZ and was identified by borehole BM37 which
assayed 656 g/t Au over 1.8m including 1154 g/t Au over 1.0m and was the location of the last mining
activity to take place under the mines previous owners in the early 1990’s.
Initial inspection of the area indicated that there
had been a substantial fall of ground in the
excavation at the end of BM37 crosscut,
completely blocking access to the vein. A staged
approach was adopted to making the area safe
for human access. Stage 1 of this programme
involved the construction of wooden and steel
sets from the brow of the crosscut extending
into the lower portion of the rise at
approximately the elevation intersected by the
BM37 borehole. This allowed the remaining rock
to be removed from the base of the crosscut,
which, in turn, provided access to the vein
material exposed on the faces of the Northern
and Southern drives.
Figure 2 the Brow of the Dubbo Rise showing fine material being
loaded out

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Figure 3 - Timber sets being constructed to reinforce the brow at the entrance to the Dubbo Rise
Removal of the material contained in the rise has revealed an excavation which will require a
significant amount of work to make safe before any fresh material can be removed. Being able to
inspect and analyse the geological and geotechnical setting provided the team with important
information required to plan the extraction of the reserves in this area.
A number of options were identified and analysed with the option of proceeding with a short decline
from the adjacent BM35 crosscut to access the Dubbo shoot approximately 7m below number 8 level
proving to yield the shortest route to positive cashflow. The decline, which will be developed on vein
where possible, aims to intersect a the high grade ore block which is estimated to average more than
an ounce of gold per tonne. The Block is in the area intersected by borehole TM002, drilled by NTL in
2004, which averaged 85g/t and 117g/t Ag over a 1.0m intersection on the Maria vein( please see
https://www.asx.com.au/asxpdf/20170712/pdf/43kl6294htcscp.pdf for further details).
Bullion
generated from construction of this
decline will contribute towards the
cost of development and provide
meaningful data on the geology of the
area.
The decline will then be extended
downwards in 7m lifts progressively
exposing more of the ore body for
sampling and delineation of
extractive blocks. The work completed during the bulk sampling phase creates a solid platform for the
Company’s full scale mine plans contemplated in the Prefeasibility Study.
Based on the current plan, at an average extraction rate of 300tpm, the company expects to be in a
position to generate an approximated average of 360 gold equivalent ounces per month during the
two-year bulk sampling programme.

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Mystery Vein
Infill sampling of the Mystery Vein was carried out in preparation for completion of an updated
mineral resource estimate compliant with JORC 2012 reporting standards. The estimate which will
inform further development and exploration of this vein system poses the most significant potential
for mine expansion given the positive results achieved on proving the extension of high grade gold
and silver mineralization.
The Mystery Vein was discovered in the 1980’s and sits approximately mid-way between the
historically productive Maria and Crown vein systems. It is believed that this vein had not been
identified previously because of its location on the boundary between the two historic mining permits,
although there is evidence that the vein may have been encountered in the lower levels of the
Talisman Mine. The vein has been exposed over a strike length of some 50m and regular sampling
carried out by New Talisman (then called Heritage Gold) identified samples on the face of Mystery
with grades of up to 50 g/t. Recent check sampling of ore exposed at the drive face yielded grades of
up to 40 g/t Au (please see https://www.asx.com.au/asxpdf/20180508/pdf/43tvlpmv420f4f.pdf
. )
The Mystery vein shows similar geological characteristics to the adjacent veins and follows a similar
north south strike direction, suggesting that this may be the same vein system worked at the historic
Rhoderick Dhu Mine which is located roughly mid-way between the Talisman and Crown Mines
around 100m below the current exposure on No 8 Level. Current activities at the Talisman prioritize
enhancing the Company’s understanding of the full extent of the vein given its potential to be a major
contributor to mine life. Once the first leg of the Dubbo decline is complete and extraction of high
grade ore has been established, blasting will recommence at the Mystery Vein establishing a
secondary feedstock for the bulk sampling project and beyond.

Figure 4 - the face of the Mystery Drive showing the extension of the vein before sidewall waste is removed

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Looking Ahead
 Following the successful capital raising, the company’s focus is on the completion of
metallurgical testwork and verifying that the pilot plant can generate the desired precious
metal recovery and other outputs. During this process the existing equipment will be
evaluated and an assessment made of upgrades required to scale up the plant capacity while
the design and procurement process for a larger plant is underway.
 During the current quarter the company advanced discussions with Terra Firma Mining
Limited who have put forward a formal term sheet for the development of a commercial scale
gold plant. The Term Sheet sets out the terms upon which Terra Firma would seek resource
consent for and construct and operate a gold plant, subject to results of the metallurgical
testwork and other data which is currently being obtained for the pilot plant. The Term sheet
is currently being reviewed by the board and an update will be provided to shareholders
shortly.
 Work continues on the resource consent application for full mining. It is expected that this
application will be lodged in the next half year to allow sufficient time for processing to ensure
continuity of the operation on completion of the bulk sampling programme.
 The detailed planning and design work for the decline development into the Dubbo area will
commence over the next quarter.
 As previously announced, while the pilot plant essentially completes the metallurgical
testwork small batches of gold and concentrate will continue to be produced once the
testwork has provided sufficient data on recoveries and other outputs. Samples of gold and
concentrate produced from the pilot plant will be on display for shareholders at the AGM in
September. Notice of meeting will be sent out in the coming weeks.
 The company has received notification from the Department of Conservation that access to
the Rahu permit area would unable to be granted due to Iwi treaty settlement discussions.
The board is reviewing its options with regard to Rahu.


Tenements Held
Rahu Resources –EP90144 100% New Talisman
Talisman Mine – MP51326 100% New Talisman Gold Mines Limited
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 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.