Quarterly Activities Report – 31 Dec 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 31/12/2019 2,692m



Share Price
Share Price at 31/12//2019 (NZX) 0.8cps
Share Price at 31/12//2019 (ASX) 0.6cps



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
• Term Sheet signed for processing plant development
• Planning Assessment for Resource Consent completed
• Peer review of Mineral Resource Estimate nearing
completion
• Extraction at Dubbo initiated
• Life of Mine planning for feasibility study underway

With eyes firmly on the future the board of New Talisman Gold Mines Limited is
pleased to announce that the 2019 Calendar year ended with great strides taken
to secure the long-term future of its signature operation, the Talisman Gold Mine
in Karangahake. Summary of the highlights during the quarter are summarized
below: -
 OceanaGold have announced that the Waihi processing plant is to be
placed on care and maintenance for an extended period, which closes
out any near-term processing options for NTL. The strategy to build a
non-chemical gravity plant implemented by management over the last 2
quarters has provided a self-sufficient alternate processing route. The
final requirements for a larger plant consent, which requires data on both
the recovery rate and sand produced after processing, is being
accelerated in order for the processing of extracted ore to take place in
the coming months.
 With planning for the near term extraction of high grade ore in Dubbo,
by way of vertical development in and around BM37 in the process of
completion, it is expected the removal of high grade ore, suitable for
gravity processing in batches at either the pilot plant (with some
upgrades) or the larger plant to commence in the near term.
 A processing route for ore from the Talisman Mine has been secured
through signing of a term sheet detailing the conditions for development
of a processing plant by Terra Firma Mining Limited. Other parties have
approached the company with options for working with NTL on the
project in various forms and these are also being reviewed with an aim
to accelerating gold production from the bulk sampling project.
 The planning assessment for resource consent application for the long
term mine has been completed and subject matter specialists are being
recruited. Once the application is submitted the external stakeholders
will determine the timing and pathway to long term consenting for the
mine. With less than minor environmental effect from the mine
development the company is confident in securing the resource consents
to mine for the duration of the Mining Permit.
Quarterly Activities Report to 31 December 2019

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Gold Price Soars
Externally, geopolitical tensions and low interest rates have driven the price of gold to a six-year
high. Gold is currently trading for just over US$1,570 an ounce, compared to less than US$1,100 in
2016. Your company remains the only pure gold play available on the NZX.

Processing Plant
The Company is pleased to announce agreement has been reached with Terra Firma Mining Limited
regarding the commercial terms and conditions for construction and operation of a plant sufficient in
size to cater for the mines longer term needs. A binding term sheet setting out these terms and the
conditions has been signed.
Phase 1 of the metallurgical testwork programme was completed in the latter half of 2019 and has
verified that:
1) The equipment contemplated for the larger plant is capable of consistently achieving the
required sub 106-micron grind size required to liberate gold;
2) That commercial recovery rates are achievable through gravity concentration of milled ore via
a centrifuge as postulated by Peacock and Simpson in their report in 2018.
Design work on the commercial scale plant is proceeding according to schedule and enquiries have
been placed with equipment suppliers.
Mining Resource Consent
NTL currently hold a resource consent at the Talisman Mine allowing bulk sampling of up to twenty
thousand cubic meters of ore per year for approximately two years. Securing resource consent to
enable the Company to extract the maximum possible value from the mines high grade mineral
resource over the ten year plus mine life is a high priority.
During the quarter an independent planner was contracted to assess impact of planned mining
operations, which are broadly similar to those for which the operation is already consented, against
the requirements of the Operative District Plan. This assessment is complete and has identified a
number of technical assessments that will be required to underpin the resource consent application.
While much of the required information has been quantified through the underground rehabilitation,

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prospecting and test mining programme over the past 2.5 years, there are some aspects that need
addressing by subject matter experts and these are currently being sourced for availability and cost
estimates.
Mineral Resource Estimate
The peer review of the updated Mineral Resource estimate as was announced late in 2019 for the
Talisman Mine is nearing completion with no material issues identified. The review process has been
very thorough, and the Company is heartened by the positive outcome.

Life of mine planning and mine design, supported by the peer reviewed mineral resource estimate, is
well underway.

Mine Design
Life of Mine level design and production planning of the underground mine is underway. This design,
which supplements the short term plans discussed in
previous announcements and informed by the
updated Mineral Resource Estimate, will result in
high level operational plan setting out the broad
developmental and infrastructure requirements
needed to support the company’s stated goal of
achieving the maximum possible return to
shareholders from extracting the world class gold
deposit presented at the Talisman Mine.
The desired outcomes of this plan, which is an integral
part of the Talisman Mine Feasibility Study, are as follows:
• Identify options for exploitation of the orebody and risk/reward analysis to identify the option
with the highest value outcome;
• Design of flexible mining and engineering infrastructure required for the most favourable
option,
• A long term mine development schedule and production profile;
• Identify risks to the project and develop strategies to quantify and mitigate those risks;
• Estimates of the capital and operating costs associated with the planned development profile;
and
• Estimates of the financial return of the project.
The plan will also identify areas, both within the bounds of the existing mine and the larger permit
area, with the potential for economic ore deposits and suggest an exploration strategy to quantify
potential mineral resources in those areas for later inclusion in the planning cycle.

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Underground 3d Mapping
A key risk to ongoing development of the mine is the potential occurrence of unknown excavations
adjacent to new workings. In order to quantify and mitigate these risks the company has aligned with
ATS, a local company to investigate the possibility of deploying digital electro seismic mapping
underground. this technology may also be used to identify extensions of the vein systems within the
mine. A beta test of the technology application for the Talisman mine is underway and results have
shown promise. This technology is
traditionally used for aquifer
mapping. Preliminary work has
indicated that the system can
potentially be adapted to work in
the underground environment. A
detailed test regime was developed
to enable seismic readings to be
correlated with known features
identified in exploration boreholes
which will allow the equipment to
be calibrated to interpret the
Talisman Mines unique geological environment. If successful, this innovative approach will greatly
assist with identifying exploration opportunities and aid mine planning.
About the Talisman Mine Project
New Talisman Gold Mines Limited (previously Heritage Gold) holds Mining Permit No 51326 which is
situated in the Hauraki Goldfields between Waihi and Paeroa, North Island. New Zealand. The permit
amalgamates the workings of the historic Talisman, Crown and Woodstock Mines which, together
with some other minor workings, produced over 3.5 million ounces of bullion at an average grade of
more than 27g/t. Exploration to date has delineated a mineral resource exceeding 300kOz of gold in
the Maria Vein with supplementary resources in the Crown and Mystery veins bringing the total to
over 400KOz. The project is consented to undertake a bulk sampling programme and remove
approximately 20,000m3 of ore a year over two years. The first stage of mine development has seen
the rehabilitation of some 1500m of tunnels providing access to the Mystery Vein and high grade
Dubbo Zone on the Maria Vein.

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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.




Tenements Held
Rahu Resources –EP60144 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.