New Talisman Gold Mines has increased its JORC-compliant gold equivalent resource by 102% at its Talisman Gold Mine in New Zealand. The substantial upgrade is a result of resource modelling of the Dubbo Zone, the first module pertaining to the Talisman Deeps project.
Measured, indicated and inferred resources now stand at 312,800 ounces gold equivalent at a grade of 21.98 g/t gold equivalent, an increase of 158,110 ounces on the 2004 estimate, which comprised 140,600 ounces of gold and 445,800 ounces of silver.
New Talisman’s CEO Matthew Hill said, “The grades established of up to 146.2 g/t for an average of 21.98 g/t places this deposit as one of the highest grade mineral resources in NZ and ranks in the top five worldwide.
“The dramatic increase in Dubbo resources ultimately proves our long held belief that there is significant remaining ore at depth. The data compilation and resource modelling has brought a much greater understanding of the mine and sets a very positive platform for long-term mine development at Talisman.
“Work at site continues to progress underground and is on budget and ahead in project timelines,” he said.
Mineral resources upgrades to JORC 2012 standards are under way at three other modules within the Talisman Deeps zone. They lie under the Talisman workings that are being refurbished by the company.
Bulk sampling of the Mystery Vein zone will be undertaken once that refurbishment is completed.
Matthew Hill says the increase in measured, indicated, and inferred gold equivalent resources in the Dubbo Zone is a significant milestone and demonstrates the potential for increasing the life of the project.
A further 95,000 ounces gold equivalent has also been identified at a grade of 23.75 g/t as exploration potential, giving a total mineral inventory for the Dubbo Zone of 408,000 ounces gold equivalent. The exploration potential constitutes a global exploration target as defined in the 2012 JORC Code.
New Talisman removed a stockpile of remnant ore believed to be representative of ore from the Dubbo Zone in 2014. It was milled at Newmont’s Waihi treatment facility and returned on average 42 g/t gold.
The prospecting phase, which is well under way at the Talisman site, has established the site and the refurbishment of underground areas is providing access to the Mystery Vein. Bulk sampling of this zone will be undertaken once that refurbishment is completed.
Consent from Hauraki District Council has been received to remove 20,000 cubic metres per annum for a period of two years.
The resource upgrade at Dubbo Deeps, together with any further resource increases at Talisman Deeps in its entirety, will be included in an updated pre-feasibility study and ore reserve statement. Where possible, areas identified will be prospected and tested for inclusion into the body of works during bulk sampling.
A pre-feasibility study for underground mining at the Talisman confirmed an initial phase one life of mine of 5 years to generate NZ$68.2 million in revenues and a cash surplus of NZ$23.4 million.