Quarterly Activities Report – 30 Sept 2019

1

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 31/10/2019 2,692m



Share Price
Share Price at 31/10//2019 (NZX) 0.9cps
Share Price at 31/10//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
• Phase 1 Metallurgical testwork complete
• Positive results from gravity circuit
• Successful capital raise of 3.6M
• First gold and concentrate produced from pilot plant
• Terra Firma proposal under review
Following commissioning of the pilot processing plant in the June quarter, the
Company focused resources on testing the plant in an attempt to reproduce the
results achieved in preliminary tests conducted offshore. The ability to replicate
the results, as was outlined at the recent AGM, is of primary importance to the
consent, design and commissioning of a gold processing plant capable of
processing the mines planned output.
The Company is pleased to announce that the results of this phase 1 testwork
have been successful and have provided the confidence to proceed with the
design and preliminary procurement stage of a commercial plant.
Key results
• On average 64% of the gold and 38% of the silver is recovered into 15% of
the ore i.e. each tonne of ore treated yields 150kg of primary
concentrate;
• The average feed grade for Maria Ore was 10.05 g/t and for the Mystery
Vein 9.61g/t both measured through sampling of mill output;
• A primary concentrate grade of 41.5g/t was achieved for the Maria vein
and 40.7g/t for the Mystery Vein;
• There was no significant difference in recovery between the two ore
types;
The effectiveness of further processing concentrate over the shaker table was
quantified through the treatment of approximately 40kg of primary concentrate
in two batches which yielded 650g and 600g of secondary concentrate at grades
of 989g/t gold and 4,120g/t silver, and 876g/t gold and 2800 g/t silver
respectively. Approximately 1.8kg of this concentrate has been produced to date.

Quarterly Activities Report to 30 June 2019

2
TALISMAN MINE PROJECT The Diagram below shows the stages of development a
nd evolution the mine has taken since Heritage comm
enced exploration activities through to mine
development and planning.

3


Metallurgical Testwork Pilot Plant
Following grant of resource consent in early July commissioning of the plant was completed and
processing of the high-grade samples taken from the Talisman Mine commenced early in the
September quarter.
The pilot plant comprises scaled-down processing units (jaw crusher, rod mill, centrifuge, shaker table)
that replicate the operations of a commercial plant to the same design as was used in metallurgical
testwork carried out in South Africa, which uses the effect of gravity to separate gold and other metals
from the host rock resulting in a metal concentrate, which can be treated further or sold directly, and
inert tailings that 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 process schematic is shown below.




Figure 1: Process flow diagram

4



















The process for separating the metals is as follows:
1) Ore is passed through the crusher which breaks it down to sub 10mm particle sizes;
2) The crushed ore is passed through the rod mill where steel rods in a rotating drum break it
down further to sub 150-micron sizes;
3) The ground ore is passed through a 150 micron screen before entering the centrifuge which
rotates at between 25,000 and 50,000 rpm and uses the gravitational forces generated by that
rotation to trap the heavier metallic elements into a primary concentrate while discharging
the lighter clay and silica particles to waste;
4) The primary concentrate is passed over the shaker table which uses the effect of differing
specific gravity to further separate metals from host minerals resulting in a cleaner secondary
concentrate.
Testwork Results
Phase 1 of the testwork is now complete and promising results have been obtained, these are
discussed in subsequent sections.
Grind size
A particle size analysis of samples taken of ore exiting the mill was carried out by SGS analytical
laboratories. The results of these tests confirm that the mill is effective at achieving the desired grind
Figure 2: Photographs of the mill and shaker table

5
size with 98% of the ore less than 100μm and 96.1% less than 75μm.
Previous testwork has indicated that a grind size of 106 μm is sufficient to liberate the electrum
(gold/silver alloy) from host rock.
Primary Recovery
In order to quantify the effectiveness of gold recovery into the primary concentrate a total of nine test
batches were run, six on ore sourced from the Dubbo Zone and three from Mystery. The results are
as follows:
• On average 64% of the gold and 38% of the silver is recovered into 15% of the ore
i.e. each tonne of ore treated yields 150kg of concentrate;
• The average feed grade for Maria Ore was 10.05 g/t and for the Mystery Vein
9.61g/t both measured through sampling of mill output;
• Concentrate grade of 41.5g/t was achieved for the Maria vein and 40.7g/t for the
Mystery Vein;
• There was no significant difference in recovery between the two ore types;
• There was considerable variance between batches, with gold recovery ranging
between 48% and 79% for Maria ore, and between 56% and 78% for Mystery ore.
There is no relationship between feed grade and recovery, so this variance is
attributable to the presence of coarse gold.
The results prove that the process is capable of producing a concentrate that can be sold directly to
a third-party operator.

Secondary Concentrate
The effectiveness of further processing concentrate over the shaker table was quantified through the
treatment of approximately 40kg of primary concentrate in two batches which yielded 650g and 600g
of secondary concentrate at grades of 989g/t gold and 4,120g/t silver, and 876g/t gold and 2800 g/t
silver respectively. High levels of other metals such as iron, copper and zinc are reported in the
concentrate. Approximately 1.2kg of this concentrate has been produced to date.

While there is significant opportunity to improve on the above results through varying of grind size
etc. the results have provided the company with sufficient confidence in the process to proceed with
the design and costing of a larger facility to cater for the needs of the project.

6


Underground operations
Detailed design and costing of the short decline from BM35 crosscut to access the Dubbo shoot
approximately 7m below number 8 level is well under way. The decline, which will be developed on
vein where possible, aims to intersect 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.

7

Mystery Vein
Updating of the mineral resource estimate for the Mystery vein, compliant with JORC 2012 reporting
standards, is progressing well. The estimate which will inform further development and exploration
of this vein system which 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 3 - the face of the Mystery Drive showing the extension of the vein before sidewall waste is removed

8
Resource estimate
The technical team have been busily completing the final data update from the data acquired known
as Talisman Deeps. The work once complete will be independently reviewed and a final JORC 2012
compliant resource for the Talisman mine will be complete. It is expected to have this technical work
complete by the end of the financial year.
Corporate
Capital Raising
During the period the company completed the capital raising and placement of shortfall resulting in
the most successful SPP on the NZX by a mining company this year raising a total of 3.6M , further
demonstrating the attractiveness to investors of NZ’s only listed underground gold mining company
Following completion of the capital raising which was offered to investors at 0.65 cents ($.0065) with
shares trading at 0.009 currently shareholders who participated have been well rewarded.
Annual Review
During the quarter the company completed its annual review meeting with NZPAM. At that meeting
the agreed work programme for the previous 12 months had been completed. Stakeholders who
attended the meeting were most supportive of the progress made and compliance with the permit
conditions confirmed.
The board would like to take this opportunity to congratulate our company secretary, Jane Bell, on
her appointment of the board of the New Zealand Institute for Minerals to Materials Research

Looking Ahead
 The company has aligned with a local company to investigate the possibility of deploying
digital electro seismic mapping underground to identify possible extensions of the vein
systems within the mine and to assist with the mapping of unknown excavations. If successful,
this innovative approach will greatly assist with identifying exploration opportunities and aid
mine planning.
 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 initial Term Sheet set out the terms upon which Terra Firma would seek
resource consent for and construct and operate a gold plant. With the completion of phase 1
testwork the parties now have sufficient data to set out the finer design details and
commercial terms with Terra Firma can be finalised which is likely to be in a form capable of
execution by mid-November.
 During the quarter the company received a formal expression of interest from a mining group
seeking to explore the potential for operating the mine on NTLs behalf. The board is currently
reviewing the proposition set out in the expression of interest.
 Work continues on the resource consent application for full mining. It is expected that this
application will be lodged in the next quarter to allow sufficient time for processing to ensure
continuity of the operation on completion of the bulk sampling programme.

9
 The detailed planning and design work for the decline development into the Dubbo area is
progressing well and will be completed over the next quarter.
 The company has received notification from the Department of Conservation that access to
the Rahu permit area would unable to be granted due to treaty settlement discussions. This
was a matter discussed with NZPAM at the annual review and an alternative work program
will be proposed given that treaty settlement issues do not allow the company to utilise the
granted permit area which is the DOC area of the permit. The company will work with NZPAM
and review the options for 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.

---

1

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 31/10/2019 2,692m



Share Price
Share Price at 31/10//2019 (NZX) 0.9cps
Share Price at 31/10//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
• Phase 1 Metallurgical testwork complete
• Positive results from gravity circuit
• Successful capital raise of 3.6M
• First gold and concentrate produced from pilot plant
• Terra Firma proposal under review
Following commissioning of the pilot processing plant in the June quarter, the
Company focused resources on testing the plant in an attempt to reproduce the
results achieved in preliminary tests conducted offshore. The ability to replicate
the results, as was outlined at the recent AGM, is of primary importance to the
consent, design and commissioning of a gold processing plant capable of
processing the mines planned output.
The Company is pleased to announce that the results of this phase 1 testwork
have been successful and have provided the confidence to proceed with the
design and preliminary procurement stage of a commercial plant.
Key results
• On average 64% of the gold and 38% of the silver is recovered into 15% of
the ore i.e. each tonne of ore treated yields 150kg of primary
concentrate;
• The average feed grade for Maria Ore was 10.05 g/t and for the Mystery
Vein 9.61g/t both measured through sampling of mill output;
• A primary concentrate grade of 41.5g/t was achieved for the Maria vein
and 40.7g/t for the Mystery Vein;
• There was no significant difference in recovery between the two ore
types;
The effectiveness of further processing concentrate over the shaker table was
quantified through the treatment of approximately 40kg of primary concentrate
in two batches which yielded 650g and 600g of secondary concentrate at grades
of 989g/t gold and 4,120g/t silver, and 876g/t gold and 2800 g/t silver
respectively. Approximately 1.8kg of this concentrate has been produced to date.

Quarterly Activities Report to 30 June 2019

2
TALISMAN MINE PROJECT The Diagram below shows the stages of development a
nd evolution the mine has taken since Heritage comm
enced exploration activities through to mine
development and planning.

3


Metallurgical Testwork Pilot Plant
Following grant of resource consent in early July commissioning of the plant was completed and
processing of the high-grade samples taken from the Talisman Mine commenced early in the
September quarter.
The pilot plant comprises scaled-down processing units (jaw crusher, rod mill, centrifuge, shaker table)
that replicate the operations of a commercial plant to the same design as was used in metallurgical
testwork carried out in South Africa, which uses the effect of gravity to separate gold and other metals
from the host rock resulting in a metal concentrate, which can be treated further or sold directly, and
inert tailings that 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 process schematic is shown below.




Figure 1: Process flow diagram

4



















The process for separating the metals is as follows:
1) Ore is passed through the crusher which breaks it down to sub 10mm particle sizes;
2) The crushed ore is passed through the rod mill where steel rods in a rotating drum break it
down further to sub 150-micron sizes;
3) The ground ore is passed through a 150 micron screen before entering the centrifuge which
rotates at between 25,000 and 50,000 rpm and uses the gravitational forces generated by that
rotation to trap the heavier metallic elements into a primary concentrate while discharging
the lighter clay and silica particles to waste;
4) The primary concentrate is passed over the shaker table which uses the effect of differing
specific gravity to further separate metals from host minerals resulting in a cleaner secondary
concentrate.
Testwork Results
Phase 1 of the testwork is now complete and promising results have been obtained, these are
discussed in subsequent sections.
Grind size
A particle size analysis of samples taken of ore exiting the mill was carried out by SGS analytical
laboratories. The results of these tests confirm that the mill is effective at achieving the desired grind
Figure 2: Photographs of the mill and shaker table

5
size with 98% of the ore less than 100μm and 96.1% less than 75μm.
Previous testwork has indicated that a grind size of 106 μm is sufficient to liberate the electrum
(gold/silver alloy) from host rock.
Primary Recovery
In order to quantify the effectiveness of gold recovery into the primary concentrate a total of nine test
batches were run, six on ore sourced from the Dubbo Zone and three from Mystery. The results are
as follows:
• On average 64% of the gold and 38% of the silver is recovered into 15% of the ore
i.e. each tonne of ore treated yields 150kg of concentrate;
• The average feed grade for Maria Ore was 10.05 g/t and for the Mystery Vein
9.61g/t both measured through sampling of mill output;
• Concentrate grade of 41.5g/t was achieved for the Maria vein and 40.7g/t for the
Mystery Vein;
• There was no significant difference in recovery between the two ore types;
• There was considerable variance between batches, with gold recovery ranging
between 48% and 79% for Maria ore, and between 56% and 78% for Mystery ore.
There is no relationship between feed grade and recovery, so this variance is
attributable to the presence of coarse gold.
The results prove that the process is capable of producing a concentrate that can be sold directly to
a third-party operator.

Secondary Concentrate
The effectiveness of further processing concentrate over the shaker table was quantified through the
treatment of approximately 40kg of primary concentrate in two batches which yielded 650g and 600g
of secondary concentrate at grades of 989g/t gold and 4,120g/t silver, and 876g/t gold and 2800 g/t
silver respectively. High levels of other metals such as iron, copper and zinc are reported in the
concentrate. Approximately 1.2kg of this concentrate has been produced to date.

While there is significant opportunity to improve on the above results through varying of grind size
etc. the results have provided the company with sufficient confidence in the process to proceed with
the design and costing of a larger facility to cater for the needs of the project.

6


Underground operations
Detailed design and costing of the short decline from BM35 crosscut to access the Dubbo shoot
approximately 7m below number 8 level is well under way. The decline, which will be developed on
vein where possible, aims to intersect 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.

7

Mystery Vein
Updating of the mineral resource estimate for the Mystery vein, compliant with JORC 2012 reporting
standards, is progressing well. The estimate which will inform further development and exploration
of this vein system which 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 3 - the face of the Mystery Drive showing the extension of the vein before sidewall waste is removed

8
Resource estimate
The technical team have been busily completing the final data update from the data acquired known
as Talisman Deeps. The work once complete will be independently reviewed and a final JORC 2012
compliant resource for the Talisman mine will be complete. It is expected to have this technical work
complete by the end of the financial year.
Corporate
Capital Raising
During the period the company completed the capital raising and placement of shortfall resulting in
the most successful SPP on the NZX by a mining company this year raising a total of 3.6M , further
demonstrating the attractiveness to investors of NZ’s only listed underground gold mining company
Following completion of the capital raising which was offered to investors at 0.65 cents ($.0065) with
shares trading at 0.009 currently shareholders who participated have been well rewarded.
Annual Review
During the quarter the company completed its annual review meeting with NZPAM. At that meeting
the agreed work programme for the previous 12 months had been completed. Stakeholders who
attended the meeting were most supportive of the progress made and compliance with the permit
conditions confirmed.
The board would like to take this opportunity to congratulate our company secretary, Jane Bell, on
her appointment of the board of the New Zealand Institute for Minerals to Materials Research

Looking Ahead
 The company has aligned with a local company to investigate the possibility of deploying
digital electro seismic mapping underground to identify possible extensions of the vein
systems within the mine and to assist with the mapping of unknown excavations. If successful,
this innovative approach will greatly assist with identifying exploration opportunities and aid
mine planning.
 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 initial Term Sheet set out the terms upon which Terra Firma would seek
resource consent for and construct and operate a gold plant. With the completion of phase 1
testwork the parties now have sufficient data to set out the finer design details and
commercial terms with Terra Firma can be finalised which is likely to be in a form capable of
execution by mid-November.
 During the quarter the company received a formal expression of interest from a mining group
seeking to explore the potential for operating the mine on NTLs behalf. The board is currently
reviewing the proposition set out in the expression of interest.
 Work continues on the resource consent application for full mining. It is expected that this
application will be lodged in the next quarter to allow sufficient time for processing to ensure
continuity of the operation on completion of the bulk sampling programme.

9
 The detailed planning and design work for the decline development into the Dubbo area is
progressing well and will be completed over the next quarter.
 The company has received notification from the Department of Conservation that access to
the Rahu permit area would unable to be granted due to treaty settlement discussions. This
was a matter discussed with NZPAM at the annual review and an alternative work program
will be proposed given that treaty settlement issues do not allow the company to utilise the
granted permit area which is the DOC area of the permit. The company will work with NZPAM
and review the options for 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.