2019 Mineral Resource Estimate Update

New Talisman Gold Mines
Limited

Responsible,
Environmentally
Sustainable Mining

ASX/NZX Code NTL
____________________

Commodity Exposure
GOLD and SILVER

Board

Charbel Nader Chairman/Independent Director
Matthew Hill Chief Executive/ Managing Director
Murray Stevens Non Executive Director
Tony Haworth Independent Director
Jane Bell Company Secretary



Capital Structure
Ordinary Shares at 23/06/2020 2,692m

Share Price
Share Price at 23/06/2020 (NZX) 0.7cps
Share Price at 23/06/2020 (ASX) 0.7cps



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
• Updated Minerals Resource estimate complete
• Peer review of 2017 MRE and best practice
recommendations adopted
• Peer review of 2019 MRE complete confirming JORC
2012 compliance
• Resulting resource places the Talisman Mine amongst
the highest grade JORC 2012 compliant resources in
the World
The Board of New Talisman Gold Mines Limited, (NTL) is delighted to
announce the results of the latest Mineral Resource Estimate, (MRE) for
the Company’s 100% owned asset, the Talisman Mine. Additionally, the
resulting review of the 2019 MRE by a world class independent expert
has now been completed and the results outlined in this report.
Following completion of the 2017 MRE which increased the Talisman
resource from a previous estimate in 2004 of 920,000t at an equivalent
bullion grade of 7.8 g/t Au to 950,000t at 15 g/t equivalent bullion
grade, an overall increase of 240,000 equivalent bullion oz, the
company undertook to update the mineral resource estimate for the
Maria and Mystery veins as new information became available. The
update included all the previous resource areas with the exception of
the Crown resource which remains at 31,000 equivalent bullion ounces.

This update includes all geochemical and geotechnical data and
incorporates new survey data gathered by the Company during the
reopening of the mine’s No 8 level. It incorporates several
recommendations made by GEOS Mining during their independent
review of the 2017 MRE as well as those recommendations made by
AMC following their review of the 2017 MRE also being adopted in the
update undertaken in 2019.
Potential extensions to the current resources have also been identified
within the main quartz vein host structures and proximal veins. These
are in the process of being prioritized with the focus on those areas that
can, with additional cost effective exploration, be developed into viable
exploration targets and upgraded to an appropriate resource category
under JORC 2012.

2020 Mineral Resource Estimate

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2
The resource update, report and data were submitted for independent peer review
by Mr. Peter Stoker of AMC Consultants (Pty) Ltd. AMC are an internationally
recognised consultancy. Mr. Stoker is past Chairman, and current Deputy Chairman,
of the Joint Ore Reserves Committee (JORC) and is regarded as a world leading
authority on the reporting of mineral resources.
AMC initially recommended alternative estimation techniques that it believed would
further enhance the quality of the estimate. NTL adopted these recommendations and
produced a second estimate for comparison. There was no material difference
between the two estimates and AMC concluded that the first updated estimate was
acceptable and suitable for public reporting by NTL. The results of the estimate are
presented in the following table and the areas referred to shown in the accompanying
diagrams.
Note: - Data sources include historic bullion samples, drill holes and underground channel samples
• Mineral Resources are reported on a 100% basis to a nominal 2.2 grams per tonne cut-off grade which was
determined in 2017 based on estimates of mining costs, metallurgical recoveries, treatment and refining
costs, general and administration costs, royalties, and commodity prices.
• Ounces are estimates of metal contained in the Mineral Resource and do not include allowances for
processing losses.
• Tonnage and grade measurements are in metric units. Gold ounces are reported as troy ounces. Rounding
as required by reporting guidelines may result in apparent summation differences between tonnes, grade
and contained metal content.
Resource
Category
Ore Zone/Vein Tonnes Grade g/t
Ounces Bullion
equivalent
Indicated Talisman Bonanza 29,000 4.3 4,100
Indicated Dubbo 15,000 9.0 4,400
Indicated Dubbo splay 4,300 19.0 2,600
Indicated Woodstock 35,000 5.1 5,600
Indicated Woodstock splay 22,000 5.1 3,600
Total Indicated

110,000 6.0 20,000

Inferred Talisman-Bonanza 300,000 19.0 190,000
Inferred Dubbo 150,000 23.0 110,000
Inferred Dubbo splay 560 14.0 250
Inferred Woodstock 62,000 5.6 11,000
Inferred Woodstock splay 20,000 4.7 2,900
Inferred Mystery 14,000 25.0 11,000
Total Inferred 550,000 19.0 330,000
Total Resources (* Crown excluded) 660,000 17.0 350,000
*including 2004 Crown Resource 810,000 15.0 380,000

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The updated resource estimate for the Maria and Mystery vein systems stands at 350,000
ounces of bullion equivalent, which is some 60,000 ounces gold equivalent less than the 2017
estimate of 410,000 ounces bullion equivalent, allowing for approximately 30,000 oz of
estimated historic level depletion that was subtracted from the 2019 MRE but had been
overlooked in the 2017 estimate, and excluding the 2004 Crown MRE. The Mineral Resource
Estimate for the Crown/Welcome vein system, estimated previously at 31,000 equivalent
bullion ounces and reported under a previous version of the JORC Code, remain part of the
total Talisman Mineral Resource Inventory, which stands at 810,000t at 15g/t equivalent
bullion grade for 380,000 equivalent bullion ounces. A revised assessment of the resource
potential of Crown/Welcome, conforming to the reporting standards of the 2012 JORC Code,
is planned for the future which will include the remaining data acquired in 2004. The decrease
is attributed in part to larger than expected historical excavation of the BM37 stope within

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the Dubbo Zone and associated challenging geotechnical environment that was encountered
during rehabilitation of the mine in 2019.
New Talisman has continued to pursue the long held geological conceptual view that there is
the potential for the Mystery vein to continue towards surface to intersect the Rhoderick Dhu
Vein. The Company is greatly encouraged by the increased grade of the Mystery Vein, (14,000
tonnes at 25 g/t Au equivalent grade for 11,000 ounces inferred). This supports NTL’s view of
the future production potential of the Mystery and as part of the ongoing drive to production
from this area, planned sampling in the next quarter will focus on increasing the resource
quantum and level of confidence.
Revision of geological models confirmed that there are several potential exploration targets
within the Maria vein, Crown/Welcome vein, in the footwall of Maria, and in the corridor
between Maria and Welcome, where the Mystery vein may extend northward to connect
with the Rhoderick Dhu quartz reef that outcrops near-surface some 600m to the north.
The northern strike extent of the Mystery vein remains untested, and represents an
exploration target with resource potential of between 200,000t to 500,000t at between 10g/t
Au and 20g/t Au. Note that this potential grade and tonnage, and the connection between
Mystery and Rhoderick Dhu is conceptual in nature until it can be tested by step-out drilling,
prior to which there is potential to track the southward extent of the Roderick Dhu vein, and
other veins that crop out in the corridor between Maria and Welcome using lower-cost,
surface exploration techniques.

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Technical summary

1. Regional Geology
The Talisman mining permit is located within the southern part of the Hauraki Goldfield, a
200-km long metallogenic zone of epithermal gold-silver and porphyry copper-gold
mineralisation that extends from Great Barrier Island in the north to as far south as Te Aroha
and Te Puke (see figure 1). The permit covers part of the historically mined Karangahake gold-
silver deposit, which is one of the largest-known epithermal deposits of the Hauraki Goldfield
and is hosted within hydrothermally-altered volcanic rocks of the Coromandel Volcanic Zone
(CVZ).
Karangahake is located near the western fault-bounded margin of the Coromandel Volcanic
Zone and is also at the south end of a north northeast-trending structural corridor that
extends northward to Ohui and hosts several epithermal gold-silver deposits including
Waitekauri, Maratoto and Komata.

2. Project Geology
Gold-silver mineralization at Karangahake is hosted in quartz veins within a sequence of
andesitic lavas, dacitic lavas and tuffs of the Coromandel Group and within quartz vein
stockwork in overlying rhyolite of the Whitianga Group. Rhyolite on the summit of Mt
Karangahake is correlated with rhyolitic tuffs that outcrop at the Rahu prospect some two
kilometres to the north of Karangahake.
The volcanic rocks are underlain by greywacke basement, reported at 335m below sea level
in a hole drilled in 1903.
In part the permit is deeply transected by the Karangahake Gorge and Waitawheta River,
resulting in exposure of mineralization at surface over some 485 metres of vertical relief.
Surface exposure in the gorge features prominent silicified ridges and bluffs, whereas
elsewhere the permit is blanketed at surface to depths of up to eight metres by post-
mineralisation ash cover.

3. Mineralisation
The Karangahake epithermal vein deposit comprises a simple vein swarm, with fissure fill of
narrow veins that trend northeast to north northeast and dip moderately to steeply west.
Mapped quartz veins occur within a zone 3.5 x 2 km that includes at least 30 discrete veins up
to 5m wide, and 50m to 1300m in strike length. The most prominent veins, the Maria and
Welcome, average 1m to 3m and 0.5m wide and crop out over 1,300m and 1,100m,
respectively. Veins are located within a broad hydrothermal alteration cell that extends over
approximately 12 square kilometres and includes both Karangahake and Rahu.
A quartz vein stockwork is developed in the silicified and clay-altered rhyolitic cap on Mt
Karangahake. A silicified and quartz-veined zone that is exposed within rhyolitic tuff on the
Rahu Ridge area to the north of Karangahake is interpreted as the strike extension of the

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mineralised system.
The Maria Vein has the largest recorded production of the Karangahake veins exceeding
700,000 bullion ounces, and has a vertical extent exceeding 700m. Its dip varies from 45
o
W to
near vertical (80
o
W). In longitudinal section, there are four distinct ore shoots – Woodstock,
Talisman, Bonanza and Dubbo. Historically, most of the ore came from the Talisman and
Bonanza Shoots.
Within the Maria vein, there is strong vertical zonation of both primary vein and supergene
mineralogy. An oxidized zone extends to the level of the Waitawheta River and is dominated
by mesocrystalline quartz and manganese oxide. Localised colloform or crustiform banding of
quartz, carbonate and sulphides and secondary enrichment of gold and silver are associated
with high-grade ore.
The richest areas of the historic mine occurred below the oxidised zone and are localised
within steeply-plunging ore shoots, particularly the Talisman and Bonanza ore shoots,
associated with the steeper sections of the Maria vein, and separated by east southeast-
trending faults. Primary quartz sulphide mineralisation occurs in the lower levels of the Maria
vein as banded quartz-rhodochrosite-calcite-sulphide vein filling, described as a base metal
carbonate association. The sulphide bands are composed of sphalerite, galena, pyrite,
chalcopyrite, and electrum, and display the typical crustiform textures of epithermal ores.
The northern end of the Maria vein is exposed on Taukani Hill, and was worked to a limited
extent in the historical Ivanhoe workings within the near-surface oxidised zone. Numerous
other veins within the Talisman Mining Permit were prospected historically within the near-
surface oxide zone and minor extraction of high-grade ore is recorded for several of these,
including Adeline, Imperial and Earl of Glasgow. Substantial mining of approximately 200,000
ounces bullion was recovered historically from the linked Welcome and Crown veins, which
are approximately parallel to the Maria Vein and have not been explored below the oxide
zone.
The prospective corridor between the Maria and Welcome veins is between 400m to 600m
wide and approximately 1 kilometre long and is largely unexplored. In a cross-cut extended
between Maria and Welcome by Cyprus discovered the Mystery vein, which has potential to
connect some 800m further north to the near-surface Roderick Dhu vein. Development work
by New Talisman continues to extend the known extent of the Mystery vein northwards.
4. Sampling Techniques
4.1. Historic sampling
Historic channel sampling on the Maria Vein has been captured from long section stope plans
created by the Talisman Gold Mining Company and dated 1919. Grades on these early plans
are recorded as bullion value in pounds shilling and pence and sample intervals are recorded
in feet and inches.
It is not possible to know exactly how the samples were taken however classical gravimetric
fire assay techniques and channel sampling technics were well established by this time and
on the balance of probability these are considered valid having been plotted on maps signed
by the mine management of the day.

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4.2. Pre-2004 sampling
Channel sampling pre-2004 is generally not well-documented, other than a small number of
channel samples from the BM37 zone by Southern Gold that are documented in a 1991 report
to the Crown.
4.3. Post-2004 sampling
NTL completed a programme of channel sampling of accessible areas to establish resources
remaining in the 7, 7A, 8 Level of the Talisman Mine and the 5A level of the Crown Mine. This
work was done using handheld electric powered diamond saws and resulted in around 920
channels samples being collected.
Channel samples were taken at a nominal 5m spacing along strike of veins where exposed.
Sample widths across veins were determined by the geology of the vein width and do not
exceed a 1.4 metre sample width.
Sample size was generally 5kg and collected in bins by chipping out each sample with a small
pneumatic drill and by hand with cold chisels. The bins were cleaned between each sample to
reduce chance of contamination.
Care was taken to ensure representative, equal-mass extraction along the entire channel. All
drillcore was halved using a diamond saw. Mineralized intervals were sampled on nominal 1m
lengths or to geological boundaries. The remainder of non-mineralised material was sampled
on 2m intervals.
4.4. Drilling techniques
A drill program by NTL utilized an underground Longyear LM55 electric wireline rig with a
LM75 power pack to drill 18 holes. Diamond coring was mostly triple tube HQTT with a 1.5m
core barrel or reduced to NQ (core size NQTT) where ground conditions dictated.
Drillcore was oriented using plasticine and holes surveyed with Eastman multi or single shot
cameras every 25m and at end of hole. NTL also conducted a program of 5 holes drilled using
a small conventional Kempe rig in the Woodstock section of the mine. Core size was LTK60.
This core was not oriented and only collar positions were surveyed as holes were generally
less than 15m.
4.5. Sample recovery
Core recovery for the Kempe rig holes averages 92.8% (55.55m total metres).
Core recovery for the 18 wireline holes averages 96.43% (1058.55m total metres)

5. Geological modelling

Information from drill hole geology, surface and underground mapping and geochemistry is
adequate to support confidence in geological continuity for the domains that have been
estimated.
The geological understanding of the setting, the structural controls on mineralization
continuity and geometry is sufficient to support estimation of Mineral Resources to the levels
conferred by Resource Classification in accordance with the JORC Code 2012.

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Geological interpretation of the Maria Vein and the ore zones within it have been updated in
2019 by compiling all mapping and drill hole data and by detailed digitizing of georeferenced
historic mine plans, including vein positions, mapped vein widths and faults, on a level by level
basis.
Vein positions were checked against several of the levels where NTL had its own data to check
consistency as a back-up against the historic mapping and more recent mapping by modern
explorers.
Mapped vein positions were wireframed in 2019 using Datamine and Leapfrog software to
form enclosed vein models suitable for estimation purposes.

6. Estimation

Estimates were restricted to hard-bounded domains based on 3D vein models.
A new wireframe model was created for the Maria Vein. Three separate ore shoots are
recognized within the Maria Vein from historic mining, including the Dubbo Zone, the
Talisman-Bonanza Zone, and the Woodstock Zone. Separate block models were created for
each of the three Maria domains and estimated separately. The Mineral Resource Estimates
also include minor splay veins from the footwall of the Dubbo section of Maria and from the
hangingwall of the Woodstock section over a strike extent of 350m and 400m respectively
between 345m and 40m RL. A footwall vein in the footwall of the Talisman-Bonanza section
of Maria was prospected and mined historically but has no documented sample data available
that could be included in the estimate. The Mystery Vein, which is located approximately
400m to the east of Maria, is included in the resource estimate over a strike extent of 270m
and depth between 240m and 100m RL.
Historic mine plans give a detailed view of areas that were stoped in the historic Talisman
Mine. Wireframe models of the stopes were created by digitising from historic long sections
and the bullion equivalent content in them was interrogated, using the same parameters as
associated vein domains. The estimated bullion mined from these stopes was subtracted from
the overall resource bullion equivalent content.
Leapfrog EDGE software was used to complete inverse distance squared estimations for each
domain. Each of these was validated by comparison with ordinary kriged estimation, for which
the results were found to be closely comparable for all estimation runs. A further check
estimate utilised a 2D estimation method with compositing across the full width of the vein
and a high-grade restriction approach. The resulting check estimate was not materially
different with respect to global estimate and contained metal.
Topcuts of 120g/t Au and 220g/t Ag were determined from combined analysis of histograms,
probability plot inflections and the 97th percentile and were applied during estimation.
Interpolation parameters were based on variography, generally with an ellipsoid orientation
of dip 45 ̊, dip direction 288 ̊ and pitch 113 ̊ in the plane of the vein domain. A declustering
function was used to reduce sampling bias. The estimation took account of localised variation
in strike and dip of vein domains through a Leapfrog EDGE “variable orientation” function.

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Estimation parameters were validated against outcomes by visual comparison with informing
data in plan and section view and by inspection of the extent to which blocks were populated.
An ordinary block model was created for the Mystery vein and all other models were sub-
blocked.
Average distance to samples and minimum number of samples were used to define resource
categories approximately based on drill spacing for Indicated categories and on ranges
determined by variography.
Estimated grade has been reported as bullion equivalent based on the formula Bulleq = Au g/t
+ (Ag g/t x 0.031609) in accordance with historic gold/ silver valuations. There is insufficient
data for detailed modelling of gold: silver ratios or for modelling of density variation across
the estimated domains.

7. Classification Criteria

Resource classification is in accordance with the requirements of the 2012 JORC Code, to
ensure appropriate account was taken of whether the nature, quality, amount and
distribution of data are sufficient to allow confident interpretation of the geological
framework and to assume continuity of mineralisation, and whether the estimates are
supported by information sufficient to support detailed mine planning and technical studies.
Initial classification was based on minimum average distance to samples and minimum
number of samples. The initial classification was then assessed as to whether the 2012 JORC
Code criteria were met for each category and revised where appropriate.

8. Cut Off Grades

Cut off grades were based on a preliminary assessment of the likely direct mining costs. A
grade/tonnage curve was used to estimate the likely applicable cut-off grade to achieve the
required ROM grade. This was determined as a 2.2 g/t Au for the Dubbo Talisman Zone and
Woodstock Zones.
Full details of the methodology and approach taken to the resource modelling can be found
in the accompanying Table 1 to this release.

Competent Persons Statement
The information in the report to which this statement is attached that relates to Exploration Targets or
Mineral Resources is based on information compiled by Jackie Hobbins, a Competent Person who is a
Member of the Australian Institute of Geoscientists. She has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’. Ms Hobbins is an independent consultant
employed by Hobbins Consulting Limited and has no financial i
nterests in New Talisman Gold Mines
Limited or any associated companies and was remunerated for this report on a standard fee
for time basis.

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__________________________________________________________________________
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2800 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, which has recently been
updated to a JORC 2012 compliant mineral resource.

12
JORC CODE, 2012 EDITION – TABLE 1
Section 1 Sa
Section 1 SaSection 1 SaSection 1 Sampling Techniques and Data
mpling Techniques and Datampling Techniques and Datampling Techniques and Data
(Criteria in this section apply to all succeeding s
ections.)
Criteria
JORC Code explanation
Commentary
Sampling techniques

•

Nature and quality of sampling (e.g. cut channels,
random chips,
or specific specialised industry standard measureme
nt tools
appropriate to the minerals under investigation, su
ch as down
hole gamma sondes, or handheld XRF instruments, etc
). These
examples should not be taken as limiting the broad
meaning of
sampling.
•

Include reference to measures taken to ensure sampl
e
representivity and the appropriate calibration of a
ny
measurement tools or systems used.
•

Aspects of the determination of mineralisation that
are Material
to the Public Report.
•

In cases where ‘industry standard’ work has been do
ne this
would be relatively simple (e.g. ‘reverse circulati
on drilling was
used to obtain 1 m samples from which 3 kg was pulv
erised to
produce a 30 g charge for fire assay’). In other ca
ses, more
explanation may be required, such as where there is
coarse gold
that has inherent sampling problems. Unusual commod
ities or
mineralisation types (e.g. submarine nodules) may w
arrant
disclosure of detailed information.
•
Sampling and drilling techniques described in this
table are for drilling
and sampling conducted post-2004 by NTL. Sampling m
ethodology
is not well-documented pre-2004. A number of earlie
r exploration
drillholes for which detailed methodology and QAQC
are unavailable
are included in the estimation data set for Indicat
ed Resources
including 18 holes drilled by Cyprus, 5 by NZ Goldf
ields and 1 by
ACM. The basis for inclusion is that drilling, samp
ling and assaying
are considered to have been conducted by reputable
companies and
assays were subject to standard laboratory QAQC.
•
For historic channel samples (pre-1920) no samplin
g or assay
methodology or QAQC is available. Bullion grades fr
om this early
sampling have been used to estimate Inferred Resour
ces on the
basis that data is adequate to imply but not verify
geological and
grade continuity and there is a reasonable expectat
ion of upgrading
the resource with further exploration. Historic ass
ay and sample
information is recorded systematically on plans sig
ned off by mine
management of the day and is consistent with record
ed production
grades.
•
Post-2004 channel sampling of Levels 7, 7A, 8 and
Woodstock of
the Talisman Mine and 5A level of the Crown Mine wa
s undertaken
by NTL using handheld diamond saws.
•
Channel samples were taken at a nominal 5m spacing
along strike of
veins where exposed. Sample widths across veins wer
e determined
by geological boundaries. Where vein width is great
er than 1 metre
sample widths generally are 1 metre and no more tha
n 1.4 metre.
•
Channels were cut to nominal dimensions of 5cm by
10cm to
resemble half HQ diamond drill core to provide simi
lar sample
support for resource estimation purposes.
•
Sample size was generally 5kg and collected in bin
s by chipping out
each sample with a small pneumatic drill and by han
d with cold
chisels. The bins were cleaned between each sample
to reduce

13
Criteria
JORC Code explanation
Commentary
chance of contamination.
•
To ensure representivity, care was taken to ensure
equal-mass
extraction along the entire channel, including fine
material.
•
Post-2004, diamond core was halved using diamond s
aw.
Mineralized intervals were sampled at nominal 1m le
ngths or to
geological boundaries. Remainder of non-mineralised
material was
sampled on 2m intervals.
•
Historic channel samples were taken from raises th
roughout the
Talisman mine. Sample widths and bullion grades wer
e recorded on
long section plans signed by management. Details of
sampling
techniques were not recorded.
•
Historic records (Jarman, 1911) describe secondary
native gold
between 11 Level and 12 Level. Petrographic observa
tions of post-
2004 drillcore samples described coarse gold (>15 m
icron) as hosted
within quartz matrix not subject to loss in fine fr
action. Gold assay
data for 74 post-2004 crush duplicate samples from
Talisman
drillcore has a correlation coefficient close to on
e (1) at 0.9989,
however most of the duplicate set represents low gr
ade samples and
therefore does not provide adequate information abo
ut heterogeneity
of high grade mineralisation. For the historic chan
nel samples, given
the lack of documentation of sampling techniques, t
here is potential
for sample error resulting from coarse gold.
Drilling techniques

•

Drill type (e.g. core, reverse circulation, open-ho
le hammer,
rotary air blast, auger, Bangka, sonic, etc) and de
tails (e.g. core
diameter, triple or standard tube, depth of diamond
tails, face-
sampling bit or other type, whether core is oriente
d and if so, by
what method, etc).
•
Most post-2004 drilling was by underground Longyea
r LM55 electric
wireline rig with a LM75 power pack (18 holes; 1058
.55m).
•
Diamond core HQTT to target depths, reduced to NQ
(core size
NQTT) where ground conditions dictated.
•
All core was oriented using plasticine and holes s
urveyed with
Eastman multi or single shot cameras every 25m and
at end of hole.
A small conventional Kempe rig drilled 5 holes for
55.55m in the
Woodstock section at LTK60 diameter (KP series dril
lholes).

Drill sample recovery

•

Method of recording and assessing core and chip sam
ple
recoveries and results assessed.
•

Measures taken to maximise sample recovery and ensu
re
representative nature of the samples.
•

Whether a relationship exists between sample re
covery and
•
Diamond core recovery was measured and recorded by
site
geologists. Triple tube drilling maximizes sample r
ecovery and
integrity of the sample. For the Kempe rig, the con
ventional core was
extracted carefully to minimize sample loss. Core r
ecovery averaged
96 % for wireline drilling (18 holes; 1058.55m) and
93% for

14
Criteria
JORC Code explanation
Commentary
grade and whether sample bias may have occurred due
to
preferential loss/gain of fine/coarse material.
conventional drilling (5 holes; 55.55m). There is n
o known
relationship between sample grade and recovery that
would indicate
a sample bias.
Logging

•

Whether core and chip samples have been geologicall
y and
geotechnically logged to a level of detail to suppo
rt appropriate
Mineral Resource estimation, mining studies and met
allurgical
studies.
•

Whether logging is qualitative or quantitative in n
ature. Core (or
costean, channel, etc) photography.
•

The total length and percentage of the relevant int
ersections
logged.
•

F
or post-2004 drilling, all core was logged to a lev
el of detail to
support appropriate Mineral Resource estimation. A
detailed regime
of geological logging includes core orientations of
structures,
lithology, mineralization, structure, core photogra
phy, geotechnical
logging undertaken by experienced geologists. All d
ata were entered
into spreadsheets using laptops producing descripti
ve and graphic
logs.
•
Detailed geological descriptions are not available
for channel
samples.
Sub-sampling techniques and sample preparation

•

If core, whether cut or sawn and whether quarter, h
alf or all core
taken.
•

If non-core, whether riffled, tube sampled, rotary
split, etc and
whether sampled wet or dry.
•

For all sample types, the nature, quality and appro
priateness of
the sample preparation technique.
•

Quality control procedures adopted for all sub-samp
ling stages
to maximise representivity of samples.
•

Measures taken to ensure that the sampling is repre
sentative of
the in-situ material collected, including for insta
nce results for
field duplicate/second-half sampling.
•

Whether sample sizes are appropriate to the grain s
ize of the
material being sampled.
•
Post-2004 drillcore was sawn in half, with one hal
f taken for
sampling, one half retained for reference logging,
petrology, check
logging, check sampling, metallurgy, geotechnical s
tudies.
•
Underground channel samples were sub-sampled and p
repared in
the laboratory via industry standard methods (crush
ing using
jaw/Boyd, followed by pulverizing to 75 microns in
LM2/5).
•
Representivity of sub-sampling was ensured by usin
g a set of QA
measures recommended by independent consultants RSG
Global
who reviewed the procedures in 2004.Quality control
included field
duplicates (split from first coarse crush) which we
re taken every
alternate 10th sample, and a preparation duplicate
(split from fine
grind) taken every alternate 10th sample. Results s
how good
correlation between core duplicates/originals and c
oarse crush
duplicates/originals. Correlation coefficient for 7
4 crush duplicate
samples from Talisman is close to one (1) at 0.9989
.
•
HQ half core is considered to provide a suitable s
ample support for
mineral resource estimation purposes for the type o
f material. No
heterogeneity studies were carried out to investiga
te the optimal
sample size.

Quality of assay data and laboratory tests

•

The nature, quality and appropriateness of the assa
ying and
laboratory procedures used and whether the techniqu
e is
considered partial or total.
•
Post-2004 all assays were carried out by SGS in Wa
ihi, using their
standard sample preparation and analytical procedur
es and internal
quality control procedures. All gold assays used a
50g charge fire
assay with AAS finish and a detection limit of 0.01
ppm. This is a total

15
Criteria
JORC Code explanation
Commentary
•

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determinin
g the
analysis including instrument make and model, readi
ng times,
calibrations factors applied and their derivation,
etc.
•

Nature of quality control procedures adopted (e.g.
standards,
blanks, duplicates, external laboratory checks) and
whether
acceptable levels of accuracy (i.e. lack of bias) a
nd precision
have been established.
assay technique and considered appropriate.

•
The quality control procedures used include the fo
llowing:

Blanks of
barren material were introduced every 30 samples, a
nd certified
reference materials, obtained from RockLabs were in
serted every
10
th
sample. These showed that there were no issues (e.
g. no
contamination, and no statistically relevant bias b
etween the certified
mean of the CRMs and the laboratory mean of assays
for those
CRMs).
•
Assays for 24 earlier drillholes included in the e
stimation data set
were carried out by certified assay laboratories, h
owever detailed
documentation of assay and QAQC methods is not avai
lable for
these samples.
•
Historic underground channel samples are believed
to have been
assayed using fire assay technique that was standar
d practice at the
time, and was generally carried out at the Thames S
chool of Mines
by specialist assayer, however there is no relevant
documentation
available for these samples other than bullion grad
es and sample
widths.


Verification of sampling and assaying

•

The verification of significant intersections by ei
ther independent
or alternative company personnel.
•

The use of twinned holes.
•

Documentation of primary data, data entry procedure
s, data
verification, data storage (physical and electronic
) protocols.
•

Discuss any adjustment to assay data.
•
Post-2004, approximately 10% of the samples from m
ineralized
intervals were sent as umpire samples to Amdel Labo
ratories at the
Macraes site in Central Otago for check sampling ag
ainst the original
SGS samples. These showed that there were no issues
(e.g. no
statistically relevant bias between the two sets of
results) High-grade
drillcore samples from the BM37 zone of the Dubbo s
hoot (Cyprus,
1989) were verified by follow-up channel sampling b
y Southern Gold
in 1991. No QC was documented for historic sample r
esults from the
raise sampling programmes of the early 20
th
century, which are
recorded as value in pounds, shillings and pence an
d plotted on mine
plans signed by the mine manager of the day. Most o
f the historic
channel samples have sample widths recorded indicat
ing they were
collected in a systematic manner.

•
Grades are consistent with those indicated in the
Museum samples
that are recorded by the then mine superintendent M
r Stanfield of the
Talisman Gold Mining Company Ltd.

Moreover, the recorded production from those l
evels and the
tonnages recorded are broadly consistent with the d
epletions

16
Criteria
JORC Code explanation
Commentary
indicated by estimation of the mined stopes.
Location of data points
•

Accuracy and quality of surveys used to locate dril
l holes (collar
and down-hole surveys), trenches, mine workings and
other
locations used in Mineral Resource estimation.
•

Specification of the grid system used.
•

Quality and adequacy of topographic control.
•
All sample positions were recorded to provide XYZ
control for
modelling purposes. The grid system used historical
ly was Mt Eden
Circuit (1949). NTL adopted NZMG (based on the NZGD
1949 datum)
and adjusted all earlier data locations to NZMG.
•
In 2005 a levelling exercise was initially conduct
ed in 8 Level for
survey control with a datum established outside No8
Level. A
registered mine surveyor completed a full survey of
8 Level and
sample locations were adjusted on the basis of this
survey by
company geologists
•
Post-2004 channel samples were located using peg l
edgers and
offsets. Each sample recorded collar position, samp
le length and
orientation to create drill hole data. These data a
re expected to be
accurate to cm resolution.
•
Each drill hole collar was surveyed and downhole s
urveys recorded
at 25m intervals using Eastman single or multi-shot
cameras.
•
Historic samples that have been used in the resour
ce estimate were
captured in 2017 from scanned historic mine plans a
nd checked
against existing databases. These were represented
in the 2017
dataset as drillholes, with the origin of each samp
le length
represented as a drillhole collar, which was then g
eoreferenced in
2017 to intersect the hangingwall of the Maria vein
wireframe. The
wireframe vein model was updated in 2019, necessita
ting further
migration of the bullion data points to ensure the
sample data was
located within the domain boundary. Migration was c
onducted solely
in the horizontal plane, using a function in Datami
ne to project the
“collar” points to the hangingwall of the Maria vei
n.
.

•
Survey and topographic control is considered adequ
ate for the
current purpose but will require further verificati
on to upgrade
resources to higher confidence classification
Data spacing and distribution
•

Data spacing for reporting of Exploration Results.
•

Whether the data spacing and distribution is suffic
ient to
establish the degree

of geological and grade
continuity
•
Data spacing and distribution is considered suffic
ient to establish the
degree of geological and grade continuity appropria
te for the
estimation methods used and resource classification
s applied.

17
Criteria
JORC Code explanation
Commentary
appropriate for the Mineral Resource and Ore Reserv
e
estimation procedure(s) and classifications applied
.
•

Whether sample compositing has been applied.
•
The Dubbo zone was drilled to 25m spacing.
•
HGL (post-2004) channel samples were generally tak
en across the
backs of exposed veins at 5m intervals. The 5m spac
ing was
adequate and gave comparable results to earlier 2.5
m spacing.
Where there was no exposure in the roof cut, channe
ls were taken
along the side walls where oblique veins crossed th
e drives. Where
possible both sides of the drives were sampled to g
ive a 5m
separation.
•
Spacing for 2065 historic underground historic cha
nnel samples used
in the estimate ranges from less than a metre to ar
ound 1.5m apart
within raises; the raises are generally around 40 t
o 80m apart.
•
Straight 1m compositing was applied to remove any
bias introduced
by small high-grade samples. It is recognized that
creation of 1m
composites has created a positive bias in mean grad
e due to over-
representation of samples exceeding 1m in length, a
nd that potential
bias could be further reduced by compositing to the
full width of the
vein. However, a check estimate completed in Februa
ry 2020 that
utilised compositing to the full width of the vein
and back-calculation
of block grade from estimated metal accumulation an
d estimated vein
width, found that compositing method did not result
in material
change to the estimate.
Orientation of data in relation to geological structure
•

Whether the orientation of sampling achieves unbias
ed sampling
of possible structures and the extent to which this
is known,
considering the deposit type.
•

If the relationship between the drilling orientatio
n and the
orientation of key mineralised structures is consid
ered to have
introduced a sampling bias, this should be assessed
and
reported if material.
•
The Maria Vein trends north to northeast over its
strike length and
dips to the west ranging from 45 to 85 degrees. NTL
channel
samples where possible are oriented to be orthogona
l to the strike of
the vein being sampled. Where this is not possible
the channel
orientation is reflected in the survey information
and is taken into
account in the modelling software.
•
Drillholes were designed to drill orthogonal to th
e strike of the
mineralized vein where possible. Due to restricted
availability of drill
platforms, several of the TM series holes in the Du
bbo zone were
drilled down-dip from the footwall side of the Mari
a vein, which
introduces potential for sampling bias if grade is
partitioned into
structures within the vein such as banding. Examina
tion of key
intercepts in core photos indicated that drillholes
were not drilled
parallel to target veins or at unfavourably narrow
angles of intercept.
The true width of the vein is used in estimation.

18
Criteria
JORC Code explanation
Commentary •
Historic channel sample data had no survey informa
tion other than
collar coordinates and channel sample length. A nom
inal orientation
has been assigned in the databases at an azimuth of
095
o
and a dip
of -20
o
reflecting the orientation of the main structures,
based on the
assumption that standard mine sampling practice in
the early 20th
century was well-developed for grade control sampli
ng and would
have been taken across the backs of the veins from
hanging wall to
footwall at right angles to strike and dip.
Sample security
•

The measures taken to ensure sample security.
•
Post-2004 samples were collected on site by NTL pe
rsonnel, either
senior field technician or site geologist, transpor
ted to NTL’s core and
sample handling facility in Waihi. Here samples wer
e prepared for
dispatch to the assay laboratory. At night the faci
lity was locked and
during the drill programme security patrols used. O
nce samples are
prepared they are transported the approx. 100m to t
he SGS assay
facility for preparation and analysis. NTL has a sy
stem of order and
dispatch numbering for sample tracking. Once delive
red to SGS their
protocols for security apply.
•
Modern drill sampling in the resource areas prior
to New Talisman
was conducted by reputable mining companies such as
Cyprus
Mines Corporation, NZ Goldfields and Australian Con
solidated
Minerals and assayed at ALS in Tauranga or SGS in W
aihi. There is
no evidence from the sample data recorded that ther
e are any issues
with data validity or security.
Audits or reviews
•

The results of any audits or reviews of sampling te
chniques and
data.
•
An audit carried out by RSG Global in 2004 found t
hat HGL sampling
procedures were of a high standard; a brief review
of the database
found it generally appropriate and adequate for res
ource modelling
purposes.
•
An independent review by GEOS in 2018 found that “
the (2017)
estimations, the data and the resource models they
are based on,
meet the guidelines set out in the 2004 and 2012 JO
RC Codes and
have no serious errors or issues associated with th
em”.

19
Section 2 Reporting of
Section 2 Reporting of Section 2 Reporting of Section 2 Reporting of Exploration Results
Exploration ResultsExploration ResultsExploration Results

(Criteria listed in the preceding section also appl
y to this section.)

Note: no exploration results
are reported.
Criteria
JORC Code explanation
Commentary
Mineral tenement and land tenure status

•

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
•

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
•
The mine area is wholly owned by New Talisman Gold
Mines Limited
under Minerals Mining Permit 51326 which was grante
d on 03
December 2009 for a term of 25 years and expires on
02 December
2034. The permit area is 299.2 ha and lies within t
he Kaimai-Mamaku
Forest Park which is Crown land administered by the
Department of
Conservation.
•
The Company operates under an access arrangement w
ith the Minister
of Conservation with an authority to enter and oper
ate.
•
In addition, the Company holds a resource consent
issued by the
District Council to carry out bulk sampling of up t
o 20,000 m
3
per
annum.
•

Tenure is secure at time of
reporting.

Exploration done by other parties

•

Acknowledgment and appraisal of exploration by other parties.
•
The Talisman permit area was held as a mining lice
nse by NZ
Goldfields and predecessors from 1971 to 1992. Duri
ng this time, they
focused on small scale production from 8 level but
also completed
substantial surface and underground exploration in
their own right.
They had a number of joint venture partners during
the term including,
Homestake Mines, Cyprus Mines Corporation, ACM Mine
rals, and
Waihi Gold. Cyprus Mines did the most extensive wor
k driving around
300m further along 8 Level from historic workings a
nd completing 51
drill holes. In 1991 NZ Goldfields went into volunt
ary liquidation and the
mining license was bought by two former directors w
ho formed a
private company known as Southern Gold just prior t
o the mining
license expiring.
Geology

•

Deposit type, geological setting and style of mineralisation.
•
The Karangahake mineral deposit is a low-sulphidat
ion epithermal gold
silver vein system with an overall strike length of
around 4km of which
approx. 1.5km lies within the NTL mining permit. Th
e deposit
comprises several major veins, the most significant
of which are the
Maria Vein in which the Talisman Mine is developed
and the Welcome-
Crown Veins. Historic mining has exploited the depo
sit for around 1km
along strike and up to 700m from surface outcrop to
the deepest 16
level. Fluid inclusion studies suggest the current
highest level of
exposure has seen 300m of erosion from the paleosur
face.

20
Criteria
JORC Code explanation
Commentary
Drill hole Information

•

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o

easting and northing of the drill hole collar
o

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
o

dip and azimuth of the hole
o

down hole length and interception depth
o

hole length.
•

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why
this is the case.

•
In 2017 New Talisman Gold Mines Ltd compiled an ex
tensive database
of geological and geochemical data for the project
from historic data
and newly acquired data based on geological mapping
, geochemical
sampling and surveying that has been used to inform
the current
mineral resource estimate.
•
NTL previously identified key representative drill
hole
information that is tabulated in the following tabl
e

21
Criteria
JORC Code explanation
Commentary

Data aggregation methods

•

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
•

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated
•
Channel samples are recorded as drillholes which a
long with drillhole
data were length weighted down hole.
•
A lower cut-off of 0.5g/t Au was applied to determ
ine significant
intersections. Occasionally short intervals below c
ut off are
incorporated where it does not result in the interv
al overall falling below
cut-off.
•
Where high grade samples form part of an overall i
ntersection of lower
grade material these also reported separately so as
not to
misrepresent the overall width of intersection of s
ignificant grade.

22
Criteria
JORC Code explanation
Commentary
and some typical examples of such aggregations should be shown in detail.
•

The assumptions used for any reporting of metal equivalent values should be clearly stated.
•
For instance; Hole TM002 assayed equivalent bullio
n grade of 2.22g/t
over 4.25m and included 0.75m at 4.75g/t equivalent
bullion.

•
It was decided to use bullion equivalent grades an
d apply these to all
samples taken in the modern era as well as the hist
oric samples. This
was due to the fact that the 2263 historic channel
samples are all
expressed in bullion values. Production data gold s
ilver ratios vary
considerably, and it was not possible to assign arb
itrary silver grades
to the bullion values with any degree of certainty.

•
With respect to the modern samples that record bot
h gold and silver
values it was an easy matter to convert these to go
ld equivalents using
the same gold and silver values that applied at the
time of mining in
the late 19th and early 20th centuries.
•
The gold price remained constant during the period
that recorded
production data is available at £4-6s-0d, (£4.25)/o
z or USD20.47/oz.
Silver values ranged from USD0.49 to USD1.03. An av
erage of USD
0.65 as chosen and a ratio of 0.031609 was factored
to give gold
equivalence based on the formula [Au g/t+(Ag g/t*0.
031609).
Relationship between mineralisation widths and intercept lengths

•

These relationships are particularly important in the reporting of Exploration Results.
•

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
•

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (egg ‘down hole length,
true width not known’).

•
Only down hole lengths are reported. While general
ly holes transect
the mineralized zones at right angles the downhole
intervals can be
slightly oblique.
•
Differences in down hole intervals and true width
are factored into the
resource estimate based on the estimation methodolo
gy.
Diagrams

•

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.

•

23
Criteria
JORC Code explanation
Commentary
Balanced reporting
•

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration
Results.

•

Other substantive exploration data
•

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or
contaminating substances.

•

Further work
•

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).
•

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not
c
ommercially sensitive.

•

Section 3 Estimation and Reporting of Mineral Resou
rces
Section 3 Estimation and Reporting of Mineral Resou
rces
Section 3 Estimation and Reporting of Mineral Resou
rces
Section 3 Estimation and Reporting of Mineral Resou
rces

(Criteria listed in section 1, and where relevant i
n section 2, also apply to this section.)
Criteria
JORC Code explanation
Commentary
Database integrity

•

Measures taken to ensure that data has not been cor
rupted
by, for example, transcription or keying errors, be
tween its
initial collection and its use for Mineral Resource
estimation
purposes.
•

Data validation procedures used.
•
Data was initially captured on paper logs and then
entered
into excel spreadsheets by NTL using standard loggi
ng
templates to ensure consistency of data capture.
•
Databases have been peer checked on a number of
occasions over the duration of the permit.
•
Data validation processes within Leapfrog Geo were
used in
2019 to identify and correct minor errors in drillh
ole data
prior to the estimation process.

24
Criteria
JORC Code explanation
Commentary •
Core photos for key intervals have been inspected
by the
Competent Person and compared with drillhole record
s
Site visits

•

Comment on any site visits undertaken by the Compet
ent
Person and the outcome of those visits.
•

If no site visits have been undertaken indicate why
this is the
case.

•
The Competent Person has visited the mine site and
has
viewed channel sampling practice and the recently rehabilitated BM37 zone on 8 Level.
Geological interpretation

•

Confidence in (or conversely, the uncertainty of) t
he geological
interpretation of the mineral deposit.
•

Nature of the data used and of any assumptions made
.
•

The effect, if any, of alternative interpretations
on Mineral
Resource estimation.
•

The use of geology in guiding and controlling Miner
al
Resource estimation.
•

The factors affecting continuity both of grade and
geology.
•
Underground mining both in the early 20th century
and more
recently has provided a large database of detailed
mapping
and grade control sampling, which has informed the geological interpretation to date. The level of det
ail provides
confidence in the interpretation and limited potent
ial for
alternative interpretations that could impact signi
ficantly on
the estimation. A limited amount of exploration dri
lling post-
1920 has also contributed to the interpretation.
•
The geologic interpretation utilises available log
data, assay
data, underground face and backs mapping and digita
l core
photos, all of which were systematically collected
and
validated. Vein intercept points are a combination
of
mapping data points exported from Datamine and addi
tional
drillhole intercept points created in Leapfrog. Vei
n and solids
are created in Leapfrog and validated against drill
ing and
mapping. Where applicable, splay veins and faults a
re
trimmed against the main Maria vein structure prior
to
estimation. Gold mineralisation is confined to quar
tz veins
and is not disseminated in wall rock; therefore, th
e main vein
boundaries are coincident with assay intervals, and
are used
to create hard-bounded domains for estimation.
Dimensions

•

The extent and variability of the Mineral Resource
expressed
as length (along strike or otherwise), plan width,
and depth
below surface to the upper and lower limits of the
Mineral
Resource.
•
The Maria Vein model is over 1300m long and extend
s to
depths of up to 350m below sea level, based on earl
y
boreholes (1920) that intercepted the Maria Vein at
least
100m below 15 Level. The resource model does not ex
tend
above 345m RL, based on the extent of sample data provided by NTL.
•
The Mineral Resource Estimates include minor splay
veins
from the footwall of the Dubbo section of Maria and
from the
hangingwall of the Woodstock section over a strike
extent of

25
Criteria
JORC Code explanation
Commentary
350m and 400m respectively between 345m and 40m RL.
A
footwall vein in the footwall of the Talisman-Bonan
za section
of Maria was prospected and mined historically but
has no
documented sample data available that could be incl
uded in
the estimate. The Mystery Vein located approximatel
y 400m
to the east of Maria, is included in the resource e
stimate
over a strike extent of 270m and depth between 240m
and
100m RL.
Estimation and modelling techniques

•

The nature and appropriateness of the estimation te
chnique(s)
applied and key assumptions, including treatment of
extreme
grade values, domaining, interpolation parameters a
nd
maximum distance of extrapolation from data points.
If a
computer assisted estimation method was chosen incl
ude a
description of computer software and parameters use
d.
•

The availability of check estimates, previous estim
ates and/or
mine production records and whether the Mineral Res
ource
estimate takes appropriate account of such data.
•

The assumptions made regarding recovery of by-produ
cts.
•

Estimation of deleterious elements or other non-gra
de
variables of economic significance (e.g. sulphur fo
r acid mine
drainage characterisation).
•

In the case of block model interpolation, the block
size in
relation to the average sample spacing and the sear
ch
employed.
•

Any assumptions behind modelling of selective minin
g units.
•

Any assumptions about correlation between variables
.
•

Description of how the geological interpretation wa
s used to
control the resource estimates.
•

Discussion of basis for using or not using grade cu
tting or
capping.
•

The process of validation, the checking process use
d, the
comparison of model data to drill hole data, and us
e of
reconciliation data if available.
•
Leapfrog software has been used in combination wit
h
Datamine to construct the 3D geological models. Est
imation
has utilized Leapfrog EDGE software using appropria
te
inverse distance and ordinary kriged techniques as discussed below.
•
Topcuts of 120g/t Au and 200g/t Ag were determined
from
combined analysis of histograms, probability plot i
nflections
and the 97th percentile and were applied during est
imation.
•
Interpolation parameters are listed below and were
based on
variography, generally with an ellipsoid orientatio
n of dip
45 ̊dip direction 288 ̊ and pitch 113 ̊ in the plane o
f the vein
domain. A declustering function was used to reduce sampling bias. The estimation took account of local
ised
variation in strike and dip of vein domains through
a
Leapfrog “variable orientation” function. Estimatio
n
parameters were validated against outcomes visual comparison to informing data in plan and section vi
ew and
inspection of the extent to which blocks were popul
ated.
•
An ordinary block model was created for the Myster
y vein
and all other models were sub-blocked, as described
in the
table below. Both tonnes are reduced by approximate
ly 14%
when compared to an earlier 2017 estimate by NTL an
d
contained metal (bullion equivalent) is reduced by
20%. The
reduction is attributed to variations due to introd
uction of
compositing, top-cutting and revision of vein bound
aries to
more closely to historic mapping data. A significan
t reduction
of contained metal in the BM37 shoot is largely att
ributed to
mined depletion that was exposed during recent rehabilitation of the mine in 2019 and was previous
ly

26
Criteria
JORC Code explanation
Commentary
unrecorded.
•
Block size was generally 5m x 10m x 5m, sub-blocke
d to 0.
5 x 1m x 1m. Average distance to samples and minimu
m
number of samples were used to define resource cate
gories
approximately based on drill spacing for Indicated
categories
and on ranges determined by variography.
•
Maximum, intermediate and minimum search ranges
adopted were generally 60 x 40 x 10m for pass 1 and
80 x
80 x 10m for pass 2 for most domains, or 20 x 20 x
10m for
pass 1 and 60 x 40 x 15m for pass 2 for the Dubbo f
ootwall
and Mystery veins, for which available sample data
is
restricted to drilling and recent channel sampling.

•
Estimated grade has been reported as bullion equiv
alent
based on the formula Bulleq = Au g/t + (Ag g/t x 0.
031609) in
accordance with historic gold/ silver valuations. T
here is
insufficient data for detailed modelling of gold: s
ilver ratios or
for modelling of density variation across the estim
ated
domains.
•
All estimates were restricted to hard-bounded doma
ins
based on detailed 3D vein models.
•
The extent of the inferred resource is validated t
o some
degree by comparison to the extent of historic stop
ing.
Estimated average grade is comparable to recorded a
verage
production grade.
•
Potential deleterious metals have not been identif
ied at this
stage.
Moisture

•

Whether the tonnages are estimated on a dry basis o
r with
natural moisture, and the method of determination o
f the
moisture content.

•
Tonnages are based on dry bulk density.
Cut-off parameters

•

The basis of the adopted cut-off grade(s) or qualit
y parameters
applied.
•
Cut off grades were based on a preliminary assessm
ent by
NTL of the likely direct mining costs.
•
A grade/tonnage curve was used to estimate the lik
ely
applicable cut-off grade to achieve the required RO
M grade.
This was determined by NTL as a 2.2g/t Au-eq lower
cut.
Mining factors or
•

Assumptions made regarding possible mining methods,

minimum mining dimensions and internal (or, if
applicable,
•
The updated Mineral Resource Estimation does not t
ake
rigorous account of mining-related assumptions, but
relies

27
Criteria
JORC Code explanation
Commentary
assumptions
external) mining dilution. It is always necessary a
s part of the
process of determining reasonable prospects for eve
ntual
economic extraction to consider potential mining me
thods, but
the assumptions made regarding mining methods and parameters when estimating Mineral Resources may no
t
always be rigorous. Where this is the case, this sh
ould be
reported with an explanation of the basis of the mi
ning
assumptions made.

on the evaluation of possible mining methods, minim
um
dimensions and mining dilution that was reported by
NTL in
2017.
Metallurgical factors or assumptions
•

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary a
s part of the
process of determining reasonable prospects for eve
ntual
economic extraction to consider potential metallurg
ical
methods, but the assumptions regarding metallurgica
l
treatment processes and parameters made when report
ing
Mineral Resources may not always be rigorous. Where
this is
the case, this should be reported with an explanati
on of the
basis of the metallurgical assumptions made.

•
NTL reported in 2017 that metallurgical studies to
date show
that expected recoveries are likely to equal or exc
eed 95%.
•
The deposit is typical of the low sulphidation dep
osits in the
Waihi Gold District which are by and large amenable
to
direct cyanidation, gravity separation of free gold
and/or
flotation concentrate cyanidation.
•
There is no evidence at this stage of any deleteri
ous
minerals that would impact on processing.
Environmental factors or assumptions
•

Assumptions made regarding possible waste and proce
ss
residue disposal options. It is always necessary as
part of the
process of determining reasonable prospects for eve
ntual
economic extraction to consider the potential envir
onmental
impacts of the mining and processing operation. Whi
le at this
stage the determination of potential environmental
impacts,
particularly for a greenfields project, may not alw
ays be well
advanced, the status of early consideration of thes
e potential
environmental impacts should be reported. Where the
se
aspects have not been considered this should be rep
orted with
an explanation of the environmental assumptions mad
e.
•
The deposit lies on DOC land under MP51326 granted
to
New Talisman Gold Mines Ltd.
•
Consents for bulk sampling up to 20,000m
3
/annum have
been granted for an initial 2-year period once bulk
sampling
commences.
•
The local authorities have consented small and lar
ge scale
mining projects in the District over the last 25 ye
ars including
NTL’s Talisman project in 2013.
•
Provided the Company prepares sufficient environme
ntal
data to back up any development proposal it will be
dealt
with by the authorities on its merits.
Bulk density
•

Whether assumed or determined. If assumed, the basi
s for the
assumptions. If determined, the method used, whethe
r wet or
dry, the frequency of the measurements, the nature,
size and
representativeness of the samples.
•

The bulk density for bulk material must have been m
easured
by methods that adequately account for void spaces
(vugs,
porosity, etc), moisture and differences between ro
ck and
alteration zones within the deposit.
•
The bulk dry density used in the estimate is 2.5 g
.cm
-3
.
•
This is based on 211 determinations of vein and wa
ll rock
samples. These were sorted into 41 vein samples tha
t had a
dry density of 2.53g.cm
3
.
•
All densities were determined on a wet, dry and pa
rticle
density basis by the University of Auckland Geology

Department and took into account voids and porosity
.

28
Criteria
JORC Code explanation
Commentary
•

Discuss assumptions for bulk density estimates used
in the
evaluation process of the different materials.

Classification
•

The basis for the classification of the Mineral Res
ources into
varying confidence categories.
•

Whether appropriate account has been taken of all r
elevant
factors (i.e. relative confidence in tonnage/grade
estimations,
reliability of input data, confidence in continuity
of geology and
metal values, quality, quantity and distribution of
the data).
•

Whether the result appropriately reflects the Compe
tent
Pers
on’s view of th
e deposit.

•
Confidence categories have been assigned in accord
ance
with the JORC Code 2012, taking appropriate account
of all
relevant factors and the result appropriately refle
cts the
Competent Person’s view of the deposit
Audits or reviews
•

The results of any audits or reviews of Mineral Res
ource
estimates.
•
An independent review by GEOS in 2018 found that “
In
general the (2017) Mineral Resource Estimates (MREs
) on
the various mineralised zones of the Talisman proje
ct have
been competently done and procedures used to incorp
orate
historical results into the overall database are re
asonable,
within the limitations and constraints from the lac
k of detail in
the data collection and reporting of procedures.”
•
An independent review by AMC in 2020 found that th
e
resource estimate completed by HCL in November 2019
for
the Talisman resource was suitable for public relea
se under
the 2012 JORC Code. AMC also found that a check resource estimate completed by HCL in February 2020

essentially gave effect to alternative techniques recommended by AMC. AMC concurs that the February check estimate resulted in no material change to co
ntained
metal and in general resulted in no material change
to the
November 2019 global estimate.
Discussion of relative accuracy/ confidence
•

Where appropriate a statement of the relative accur
acy and
confidence level in the Mineral Resource estimate u
sing an
approach or procedure deemed appropriate by the Com
petent
Person. For example, the application of statistical
or
geostatistical procedures to quantify the relative
accuracy of
the resource within stated confidence limits, or, i
f such an
approach is not deemed appropriate, a qualitative d
iscussion
of the factors that could affect the relative accur
acy and
confidence of the estimate
.

•
Appropriate steps have been taken to optimize the
relative
accuracy of the global estimates through geological
control,
through conservative application of appropriate upp
er and
lower grade ranges, through compositing and declust
ering
the data to minimize bias and through the use of ap
propriate
variogram modelling to guide search parameters. Val
idation
steps that provide qualitative confidence in the es
timate
include visual comparison of estimated grades to in
forming
data, comparison of ID
2
and OK estimation results for all

29
Criteria
JORC Code explanation
Commentary
•

The statement should specify whether it relates to
global or
local estimates, and, if local, state the relevant
tonnages,
which should be relevant to technical and economic evaluation. Documentation should include assumption
s made
and the procedures used.
•

These statements of relative accuracy and confidenc
e of the
estimate should be compared with production data, w
here
available.
estimation runs and comparison of estimated average
grade
to historical average production grade. In February
2020,
HCL completed a check estimation that utilized alte
rnative
estimation techniques recommended by AMC, including

application of a high-grade restriction rather than

conventional top-cut, compositing of samples to the
full width
of the vein, flattening the data to a 2D plane prio
r to
variography and estimation, and back-calculation of
block
grade from estimated metal accumulation and vein wi
dth.
Changing the estimation methodology resulted in no
material
difference to estimated metal content or in the glo
bal
estimate, which provides further qualitative confid
ence in the
estimate.