Quarterly Activities Report to 31 Mar 2021

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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
Jane Bell Company Secretary


Capital Structure
Ordinary Shares at 31/03/2021 2,809m



Share Price
Share Price at 29/04//2021 (NZX) 0.4cps
Share Price at 29/04//2021 (ASX) 0.4cps



New Talisman Gold Mines Limited
ACN
Address 547 Parnell Rd, Parnell,
Auckland
Phone +64 27 5557737
Website www.newtalisman.co.nz

Email info@newtalisman.co.nz

Market Announcement
For Immediate Release
New Talisman Gold Mines Limited (NTL) is pleased to present a report on activities
for the quarter ended 31 March 2021.

HIGHLIGHTS
• NZ based treatment options identified for processing.
• Coromandel Gold identify additional assets on the NZ West Coast.
• Coromandel Gold has completed Vanuatu due diligence and
transaction documents being finalised.
• Broken Hills Historic Mine Limited acquisition progress update.
During the quarter the Company was focused on completing due diligence on the
Broken Hills and Vanuatu acquisitions, and identifying a economically viable
processing route.
A number of options have been identified for processing ore in NZ. The next steps
over the coming weeks will be to test up to 100t sample (in batches of 5-10t) at
one or more facility to determine recovery rates and economic feasibility prior to
entering commercial agreements. The capacities of each facility range from 1tph
up to 10tph with the largest outlined further below.
New Talisman Gold Mines Limited and Broken Hills Historic Mine Limited are
currently working with Mint Innovation Limited (a New Zealand company) to
determine the feasibility of using their novel technology for gold recovery using
microorganisms. Mint’s pioneering technology is cyanide free and enables
precious metal recovery from challenging materials in an environmentally
responsible manner. NTL is engaged with Mint Innovation, (who have previously
worked with Broken Hills), to determine suitability of their solution in respect of
both Talisman and potentially Broken Hills. Mint Innovation have indicated they
have capacity for batch treatment as of July.
In addition, during the quarter discussions progressed with a major New Zealand
industry group that currently have immediate capacity to process an initial batch
of up to 100t of ore and a proposal has been put forward which provides the
potential for developing jointly or separately a permanent or mobile treatment
facility, following initial feasibility which is expected to commence in the near
term for testwork.
In the NZ mining industry, small scale operations (including those that have
restricted extraction approvals) have the same stringent health and safety
requirements as major operators and therefore are difficult to make economic at
low volumes. This highlighted the need for economies of scale while Talisman is
at the bulk sampling phase to warrant a full-scale solution capable of processing
ore at both bulk sampling and future peak mine volumes (when approved). The
acquisition of Broken Hill Historic Mine Limited (BHG) would lessen development
risk by having multiple sources of ore.
Quarterly Activities Report to 31 March 2021

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The combination of skills from both companies creates an efficiency resulting in the reduction of costs
attributable to WorkSafe requirements for which Talisman have extensive health and safety
management systems developed using best practice models developed by Terra Firma and the NTL
technical team.
New Talisman’s and its contractors high proficiency in health and safety management, planning and
engineering and mine development skills brings a significant value to the existing BHG operations in
meeting compliance requirements.
With the addition of the BHG teams, skills and expertise in both the areas of narrow vein extraction
methods using specialised equipment as well as the additional geological expertise the Broken Hills
acquisition has the potential to add significant value to the New Talisman Group’s existing mining
operations.
Corporate
Following the end of the quarter the executive team progressed commercial discussions and
subsequently the management and technical team met with a major industry group’s Metallurgy and
Minerals science experts at their processing and research facility. The facility provides for the analysis
and processing options for various minerals, ores and other elements using a variety of separation
processes and potential to concentrate other minerals and inclusions which hold commercial value.
A long term proposal is currently under review by the major group which allows for an initial
processing of up to 100T of Talisman stockpiled ore. The management team are in the process of
agreeing the initial transport of ore from stockpiles located off site for metallurgical analysis,
mineralogy and processing route options while the potential for a commercial processing agreement
is negotiated subject to testwork results.
Matthew Hill said “The identification of a number of options for processing and testwork with
capacities ranging from 10T to 100T per week provides for short term and long term treatment options
is a key milestone and once the bulk sample testwork is complete larger volumes will be transported
for processing and a commercial volume based agreement can be finalised. A treatment proposal is
currently being negotiated ”.
DEVELOPMENT AND PRODUCTION PROJECTS
Talisman Mine
The Mystery development and the technique proposed by Terra Firma which initially would push the
face some 10-20m forward were reviewed against drilling the Mystery vein from underground to
partially test the extent of the vein.
Progress was made during the quarter on areas which will support the permitting application required
to be lodged for a scaled-up processing plant utilizing both NTL and Broken Hills’ existing plant to treat
Talisman and Broken Hill’s ores once a suitable site is located and permitted. Application planning is
being undertaken alongside test work outlined in this report which may provide an interim solution
while a permanent plant is developed.

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Health and Safety
During the quarter Terra Firma continued to ensure compliance with relevant legislation through
regular inspections of the condition of underground workings, monitoring of underground air quality
and maintenance of the ventilation and electrical infrastructure. General maintenance and pest
control continues to be routinely undertaken.
Terra Firma have been engaged to review the Broken Hills Gold project and to identify the
requirements that would need to be met for the project to meet WorkSafe requirements prior to
recommencing production. The appointment of a number of statutory posts at BHG are underway
following the initial review and NTL and Terra Firma are looking at ways to apply the extensive health
and management systems across the BHG operating framework.

Underground resource development
Resource confirmation and modelling work under phase 4 of the Talisman Deeps project continued.
This includes compilation and modelling the various targets that have been reported previously.
Emphasis is on identifying opportunities to expand known resources and upgrade existing targets that
lie within current resource blocks or nearby. The initial review is nearing completion. Once complete,
a separate resource update will be released.

Broken Hills Historic Mine Ltd
KEY HIGHLIGHTS
• Production data from the current mining operation, as provided by the vendor to
NTL as part of the ongoing due diligence process, shows that between 2001 and
2019 a total of 6,494 oz of gold and 17,539 oz of silver from 12,102 tonnes of
quartz was produced at an average grade of 16.69g/t gold and 45 g/t silver. NTL
are encouraged that these figures demonstrate the excellent potential for
continued production at this tenor of gold grade and for realising the larger
exploration and development upside of the Broken Hills Mine.
• Access to a nearby treatment facility for processing small volumes of Broken Hills
ore which have been tested and commercial recoveries achieved.
• Work commenced on digitising an extensive geological database to enable
geological modelling and resource assessment.
The acquisition of the Broken Hills Mining Project by New Talisman Gold Mines has a number of
additional benefits to the Talisman project and shareholders, environment and the community at
large. Broken Hills Historic Mine use narrow vein mining techniques that are well proven to maximise
extraction of high grade ore and minimisation of dilution with negligible environmental impact.

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The Broken Hills mine utilises rail as the main transportation method and an electric locomotive to
haul rolling stock. Broken Hills currently have one spare electric locomotive which following the
acquisition may allow for efficient transportation and increased volumes through the mine workings
and elimination of generating diesel particulates.
https://www.nzx.com/announcements/366790



Coromandel Gold Limited
Vanuatu Project
Following the execution of the binding term sheet to acquire the Vanuatu assets of Canterbury
Resources Limited (ASX:CBY) last quarter NTL is pleased to advise that the team have now completed
due diligence on its acquisition of the highly prospective Vanuatu Projects and are finalising
transaction documents with Canterbury Resources which will complete the acquisition. Following
execution, the process to transfer the Vanuatu project into Coromandel Gold Limited can be finalised
and preparation to compliance list Coromandel Gold Limited can commence.
By world standards Vanuatu is extremely underexplored. Modern exploration for gold started in the
mid 1980’s and with sporadic bursts mainly in the 1990’s and briefly in the early 2000’s. Further
information about this acquisition can be found on the release dated 10 December 2020
https://www.nzx.com/announcements/364819

Planning is now underway for work programmes to build on historic work and work completed by
Canterbury to prioritise drill targets.

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The New Talisman technical team recognize the close similarities of Vanuatu gold mineralisation and
geological setting to that of New Zealand’s Hauraki gold deposits as exemplified in the table below.
Comparison of deposit features of the Hauraki Goldfield with western islands of Vanuatu
Hauraki Goldfield Santo-Malekula Islands
Terrain dimensions 200km by 30km 200km by 30km
Regional structural setting Above convergence zone of
Australia-Pacific plate
boundary
Above convergence zone of
Australia-Pacific plate boundary
Local tectonic setting NW trending boundary faults
NE trending secondary
structures control
mineralisation
NW trending boundary faults
NE trending secondary structures
control mineralisation
Host rocks Greywacke, andesite, dacite Andesitic lavas and volcanoclastics
Age Miocene to Pliocene Miocene to Pliocene
Prospect types Porphyry Cu-Au-Mo
Epithermal Au-Ag (adularia-
sericite)
Porphyry Cu-Au
Epithermal Au-Ag (adularia-sericite)
Porphyry characteristics Dacite porphyry + intrusion
breccias
Potassic, propylitic, phyllic
alteration with lithocap
Disseminated chalcopyrite +
molybdenum
Partially drilled
Felsic intrusives
Alteration not specified, skarns
Chalcopyrite
Not drilled
Epithermal characteristics Quartz ± calcite ± adularia ±
illite type
Productive veins in andesite
host
Vein dimensions 300-1300m
strike, 170-700+m vertical, 1-
5m wide
Zoned Au-Ag→Cu-Pb-Zn with
depth
Multi-stage quartz veins –
massive, banded (colloform),
Quartz ± adularia ± illite ± amethyst
Best developed in andesite lavas
<200m strike but likely longer
Au-basemetal association
Banded (colloform), amethyst
None known but likely 1-2km²
Propylitic
Associated with hydrothermal
breccia, no sinter reported

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breccia.
Bonanza style ore shoots
Alteration halos ~5-120km²
Propylitic – quartz, chlorite,
illite, pyrite ± adularia ± albite
± calcite
Associated with hydrothermal
breccia, sinter
Number of porphyry prospects 4 5 known
Number of epithermal
prospects
50 4 known
Production 14.1Moz Au No production
Note: the lack of detail in many Vanuatu prospects is mainly due to poor documentation
Notably the Hauraki Gold Field has at least 50 epithermal prospects and mines delineated over a 170
year period and over 10miilion ounces of recorded gold production. Vanuatu by contrast has had very
little gold exploration but with gold potential now recognised as being similar to the Hauraki Gold
District
This acquisition represents a rare opportunity to acquire a strategic holding in a highly prospective
part of the Pacific Rim of Fire that extends from Japan through the Philippines, PNG, Solomons,
Vanuatu, Fiji to New Zealand and identify opportunities for hard rock exploration and alluvial
production opportunities.
Active mines in the region include OK Tedi (17Moz), Porgera (7 Moz), Lihir (30Moz) and Vatukoula
(11Moz), Waihi (10 Moz), Talisman (3 Moz) plus several world class deposits slated for development
such as Wafi Golpu, PNG, (28Moz), and Namosi, Fiji, (5.5Moz). The nearest significant deposits to
Vanuatu are the Emperor (Vatukoula) gold mine to the east in Fiji and Gold Ridge gold deposit to the
north in the Solomon Islands.
Alluvial opportunity
At the end of the quarter Coromandel Gold and NTL management met with operators on the West
Coast of a current alluvial gold operation based on extensions of gold bearing gravels that were last
mined by the Kaniere Dredge in the middle of the last Century. Campbell McPherson who introduced
the parties are working with NTL operator on progressing the potential for inclusion of this and other
alluvial and hardrock projects in a compliance listing on the NZX.

Tenements
Rahu Resources –EP60144 100% New Talisman
Talisman Mine – MP51326 100% New Talisman Gold Mines Limited

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Rahu Gold Project (100%) – Hauraki District, NZ
The application for a Change of conditions which would require a significant reduction in permit area
is being reviewed by the board to ensure remaining area would provide sufficient access for which
NTL has maintained access agreements with private farms in the area.


Competent Person Statement
About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with over 3,000 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.