Updated Quarterly Activities Report to 30 June 2020

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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 31/07/2020 2,792m



Share Price
Share Price at 31/7//2020 (NZX) 0.8cps
Share Price at 31/7//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
QUARTER HIGHLIGHTS
• Gold Price Soars Above 2011 Peak
• Talisman Mine Site reopened following lockdown
• Mineral Resource Estimate and Review complete
• Geological Analysis identifies 3 priority target areas
Following the last quarter which ended in Level 4 lockdown, the team used the
lockdown period as a good opportunity to focus its efforts reviewing all of the
geological modelling and, following receipt of the AMC review, commenced
identifying prospective areas for near term underground exploration.
Through the review of the extensive NTL/Heritage database, a number of low-
cost activities were identified and prioritized by the highest resource potential.
These areas and the accompanying activities currently being planned are aimed
to commence alongside underground operations at Mystery as outlined. A
detailed summary of each target is outlined further in this report.
During the quarter the company received an estimate for drilling the Mystery as
part of the development program being costed alongside vein development at
the Mystery face as previously announced.
By the end of the quarter the company had completed remobilizing to site and
reopening of the mine following lockdown where the site was secured.
Terra Firma have now commenced the preparatory planning work including
procuring consumables for the commencement of blasting the drive forward of
the Mystery Vein. As previously outlined this work aims to test the continuity of
the vein which has continued to prove high grades. Further sampling of continued
high-grade gold could provide the potential for resource expansion and further
increase stockpiles of ore for processing.
From a financial perspective with the additional cost cutting measures, the
quarter resulted in expenditure of NZ$290k and cash at the end of the quarter of
NZ$2.2m.
Maintaining cash through reduced capital and operating expenditure while
completing activities which add to the gold resources and/or provide further
stockpiled paydirt are the near-term objectives while the processing route is
secured.
With a driving gold price reaching a record US$1,956 the highest gold price since
2011 and in NZD terms near its all-time highs at NZ$2,924, the market climate
continues to support the accelerated development of the Talisman Gold Mine.
Quarterly Activities Report to 30 June 2020

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TALISMAN PLANT
The key in cementing cashflows is the delivering of a production route for the Talisman ore following
the completion of a majority of the testwork at the pilot plant last quarter. A larger scale plant has
been scoped and flowsheets developed which provide a gravity-based solution capable of handling
longer term volumes.
The Company continues to evaluate processing plant site options having established from its pilot
plant test work that the Talisman ore can be processed by gravity methods with good gold recoveries
not requiring the use of cyanide.
While consenting work is being undertaken the Identification and inspections of second hand plants
is underway.
As announced last quarter discussions have commenced with a high profile NZ industry group and
work is underway on the evaluation of the potential for a formal collaboration that could facilitate
funding, delivery and operation of a joint processing plant as part of a broader industry offering. NTL
is currently working on the modelling of volumes in line with the current Talisman mine plan and
development of a broad commercial business model treating similar volumes. This will determine
commercial drivers and allow further due diligence to continue.

Resource Expansion and Target identification
During the quarter the team took the time provided during lockdown to analyze the geological
databases for targets following the receipt of the AMC report. This has resulted in the development
of a number of low capex activities aimed at the target areas. With the mineral resource estimate
complete and reviewed, work can continue on the design and scheduling of the longer term mine. It
is possible that production from the Mystery vein will play an increasingly important role in the mines
overall production profile so it will be important to consider the placement of critical infrastructure so
that both the Maria and Mystery veins can be mined concurrently without duplicating access and
ventilation systems.
In parallel with this process NTL is planning to focus initially on the Mystery vein for its near term bulk
sample ore.
This will involve driving on the Mystery Vein and creating drill and channel sample positions for
resource expansion, grade confirmation and to bring more of the current inferred resource into the
measured and indicated resource categories.
There are a number of other targets that have been identified from previous work done by NTL and
its predecessor Heritage Gold Ltd as well as work dating back to the 1980’s that have demonstrated
resource potential and are in close proximity to where the Company has been operating underground.
These are defined as exploration targets under the 2012 edition of the JORC code as being where, “the
potential quantity and grade is conceptual in nature, that there has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a
Mineral Resource”
These targets were first reported on in a release to the ASX/NZX on 8 June, 2016,
https://www.asx.com.au/asxpdf/20160608/pdf/437rrdbmhdt90d.pdf
The objectives are to confirm geology and grade information and model the targets in terms of
volume, gold grade range and content.

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The targets being assessed are:
Mystery/Roderick Dhu
NTL have channel sampled and drilled 3 diamond holes into the Mystery Vein. There is currently a
small inferred resource of 11,000 oz Au bullion equivalent outlined at an average grade of 25g/t gold
bullion equivalent. (See release to ASX/NZX dated 24 June, 2020 2019 Mineral Resource Estimate
Update,
https://www.asx.com.au/asxpdf/20200624/pdf/44jxg7jlm05d5q.pdf.

New Talisman confirms that it is not aware of any new information or data that materially affects the
information in the referenced market announcement and that all material assumptions and technical
parameters underpinning the estimates continue to apply and have not materially changed.

The vein lies between the Maria and Welcome/Crown Veins approximately 200m east of the Maria
Vein. Its orientation, width and character are consistent with the Maria and Welcome/Crown veins
mined historically.

Figure 1 - Mystery Vein, estimated Au block grades
Examination of surface and underground geochemical sampling results from historic data shows the
possibility that the Roderick Dhu veins that occur around 600m north of the Mystery vein may well be
the same vein system.
NTL has long speculated that this might be the case and analysis of the new data supports this. The
grades recorded in the historical data set from 39 surface outcrop and underground channel samples
range from below detection to 84.0 g/t gold with an average of 11.89 g/t Au and 107.4 g/t Ag. Sample
widths range from around 10cm to 1.8m and average 0.4m.

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Figure 2- Exposure of the Mystery Vein at No 8 Level - Talisman Mine

Crown Mine

The Crown Mine comprises two main veins, the Crown Vein and the Welcome Vein. The majority of
historic stoping was carried out on the Welcome Vein while little was done on the Crown until late in
the pre-First World war era. The Welcome-Crown Vein system is over 900m long including extensions
into Taukani Hill and open along strike to the north and south and at depth.

Currently there is a measured, indicated and inferred resource here of 29,500 oz gold estimated to
JORC 2004 requirements as shown in the following table;

Crown Vein 2006 Resource Estimate
Category Tonnes Gold Grade
g/t
Gold
Ounces
Silver
Grade g/t
Silver
Ounces
Inferred 80,100 6.3 16,200 12.7 32,700
Indicated 35,900 6.3 7,300 12.7 14,700
Measured 30,100 6.2 6,000 12.4 12,000
Total 146,100 6.3 29,500 12.6 59,400
Note: There may be small variations due to rounding. Resource estimated in 2006 in compliance with
JORC 2004. There have been no material changes to the data with which this estimate was made since
first reporting.

Considerable exploration potential exists in this vein system and it is easily accessible from the current
underground workings on 8 Level, 5A Level and Keillors Cross-cut.

There is around 180m to 200m of backs above 5A level on the Crown Vein to the surface that are not
currently included in the existing resource estimate for the Crown.

Historical evidence indicates that the upper levels above 5A were not developed owing to access
difficulties from the Waitawheta gorge and there being no access from the adjacent Talisman Mine at
that time. In addition, development of the Crown ceased at the end of the First World War owing to
shortages of manpower and capital and the downturn of the mining industry at that time.

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Sampling by past explorers in the 1980’s shows promising results for the Crown Vein in outcrop at
surface where some 24 channel samples that range in width from 0.1 to 1.8m and average 0.74m gave
an average gold grade of 16.6g/t, within a range of 0.16g/t to 81.5g/t Au.

Figure 3- Crown 5A level at the Talisman Mine

Imperial/Sutro Vein System
The Sutro workings lie approximately 100m east of the Crown Mines surface outcrop. These appear
to be a southward extension of the north east trending Imperial veins. Their significance is now
apparent from the historic data and they require further work to develop the target.

Preliminary observations are that the veins in the Sutro workings from which 39 channel samples were
taken range in gold values from below detection to 94.0 g/t gold, averaging 8.46 g/t Au and 22.8 g/t
silver. Sample widths average 0.5m and range from 0.1m to 1.2m.

Further exploration of these veins is warranted on surface and subject to suitable drill positions being
established from Crown Level 5A could be easily drill tested from underground.

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Mine Planning and Consenting
As announced previously the Life of Mine level design continues to be developed. Recent gold prices
have risen to such an extent that the impact on the mine design and economic cutoff grade allows for
a review of areas such as Woodstock which becomes economic at the current gold price. The period
saw the completion of the main high level design which broadly sets out the developmental and
infrastructure requirements needed to support the mine. Additional work is being undertaken to
include the further data derived from Mystery Drive into increasing confidence of the company
resources in the JORC Categories.
Over the course of the next six months the company intends to lodge an application for full mining at
Talisman and work has commenced on the initial gap analysis for application with the Council aimed
at securing consent to mine following the end of the two year bulk sampling plan.
Corporate
The board continues to maintain a 20% reduction in fees and salaries which were introduced in 2019
while the global economy remains uncertain.

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Sharetrader postings
Following on from the company’s announcement on 6 July 2020, the New Talisman Chairman arranged
for a third party to review the comments publicly available, alleged by sharetrader.co.nz as being
made by the company’s CEO on the sharetrader.co.nz site. Following that review, the company is
satisfied that the poster has not disclosed any material information not already generally available to
the market.
Tenements
Rahu Resources –EP60144 100% New Talisman
Talisman Mine – MP51326 100% New Talisman Gold Mines Limited
Competent Person Statement
The information in this report that relates to exploration results, exploration targets and mineral
resources is based on information compiled by or supervised by Mr Murray Stevens. Mr Stevens is a consulting
geologist and director of New Talisman Gold Mines Ltd, who is a corporate member of the AusIMM. Mr
Stevens has sufficient experience which 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 2004
and 2012 Editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Stevens consents to the inclusion in this report of the matters based on his information in the
form and context in which they appear.
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 2900 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.