ecc1911e-61fb-4beb-8039-8db96af8094d.pdf
F o c u s e d A u s t r a l i a n M i n e r a l E x p lo r a t i o n C o m p a n y
17th December 2015
COMPANY SNAPSHOT
Board of Directors Alan Senior
Non-Executive Chairman
Gary Lethridge
Managing Director
Brian Dawes
Non-Executive Director
Karen Gadsby
Non-Executive Director
Contact Details Telephone:
+61 8 9380 4230
Facsimile:
+ 61 8 9382 8200
Email:
[email protected]
Website:
www.talismanmining.com.au
Capital Structure
Shares on Issue:
148,559,904 (TLM)
Options on Issue:
6,400,000 (Unlisted)
ASX: TLM
Monty Exploration Update
Monty Resource drilling well advanced New regional exploration targets identified
Significant exploration planned at Springfield Springfield Joint Venture now formed
Highlights
-
Resource drilling at Monty is now estimated to be over 60% complete. Large backlog of drillholes awaiting sampling, despatch and assay.
-
A maiden Mineral Resource estimate for Monty is anticipated in the New Year.
-
High-grade copper intercepts from recent assayed drilling include:
TLDD0025
-
9.4 metres grading 7.2% Cu and 2.2g/t Au from 326.0m down-hole
(down-hole width);
TLDD0027
-
1.3 metres grading 11.5% Cu and 2.2g/t Au from 393.5m down-hole
(down-hole width); and
-
10.7 metres grading 6.2% Cu and 2.0g/t Au from 411.0m down-hole
(down-hole width).
TLDD0029
-
8.3 metres grading 8.0% Cu and 1.1g/t Au from 173.9 down-hole
(down-hole width).
-
Joint Venture between Talisman and Sandfire now formed:
-
$15 million sole funding by Sandfire now complete (subject to audit of final $5 million exploration expenditure);
-
Transfer of a 51% joint venture interest to Sandfire underway;
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Joint Venture budget of $7.5 million for the 3 month period December 2015 to February 2016 (inclusive) agreed, including continued resource drilling, regional exploration activities and preliminary scoping works.
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Significant exploration is underway or planned at the Springfield Project by the Joint Venture within the period December 2015 to February 2016 including:
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Drilling at the Homer Prospect has now commenced;
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Planned RC drilling to the north east of Monty along the prospective Monty Trend;
-
RC drilling of geochemical anomalies at Monty South and the Southern Volcanics is planned;
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First pass drilling and assessment of the newly identified Monty Deeps is planned; and
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Planned infill aircore drilling at Monty South and first pass aircore drilling of a potential structural exploration target in the north east of the Springfield Project.
Talisman Mining Limited (ASX: TLM, "Talisman") is pleased to announce that Sandfire Resources NL (ASX: SFR, "Sandfire") has provided an update on current and planned exploration activities at the Monty copper- gold discovery within the Talisman's Springfield Project located to the east of the DeGrussa Copper-Gold Mine (see Appendix 1).
The collar locations of advised holes drilled to date by Sandfire are shown in the plan view diagram below (see Figure 1) and in Table 1.
Figure 1: Plan view of Monty showing drill-hole collar locations and simplified interpreted geology.
Monty Resource Definition Drilling
Sandfire has advised that resource definition drilling has continued and advanced at Monty with four Diamond drill rigs drilling on double shift. Drilling has been focused on the definition of the Monty Lower Zone mineralisation and has been aimed at defining the edge and continuity of the mineralisation via an infill program.
Sandfire has informed Talisman that approximately 8,000 metres of drilling has been completed since the last ASX Announcement on 5 November 2015. Talisman estimates that approximately 56 drill holes have now been drilled and that based on the estimated number of planned holes, the resource definition drilling campaign at Monty is now over 60% complete.
Talisman understands that as a result of the accelerated resource definition drilling over the past two months and with other recent and ongoing exploration activity across the project, a back log has developed with respect to the processing and dispatch of Diamond drill core from Monty to the assay laboratory for analysis. As such there are a significant number of assay results for recently completed holes that remain outstanding at this time.
Sandfire has advised Talisman that recent drilling intercepts are in general visually substantiating initial interpretations that were based on the wide-spaced initial exploration holes.
Latest assay results (see Table 1) provide further support and assistance in confirming the continuity and grade of the mineralisation intersected to date at Monty and include the following results from the Lower Zone:
TLDD0025
-
9.4 metres grading 7.2% Cu and 2.2g/t Au from 326.0m down-hole
(down-hole width);
TLDD0027
-
1.3 metres grading 11.5% Cu and 2.2g/t Au from 393.5m down-hole
(down-hole width); and
-
10.7 metres grading 6.2% Cu and 2.0g/t Au from 411.0m down-hole
(down-hole width).
Drilling has also potentially grown the extents of the mineralisation intersected to date in the Monty Upper Zone via the result below:
TLDD0029
-
8.3 metres grading 8.0% Cu and 1.1g/t Au from 173.9m down-hole
(down-hole width);
An updated vertical longitudinal projection provided by Sandfire (looking to the south-east) is shown in Figure 2
below, with new assayed intercepts highlighted in yellow.
Figure 2: Vertical Longitudinal Projection and initial interpretation of the Monty Prospect with drill-hole pierce points at the top of the primary intercept shown in bold. All intercepts are down-hole widths. A significant intersection is defined here as any intersection ≥ 3m estimated true width that has a grade of ≥ 2.0 % Cu, inclusive of non-mineralised material. To determine whether intersections that are 2.0% Cu, with the non-mineralised material included, then the intersection is considered significant. New intersections (not previously reported) are highlighted in yellow.
Resource drilling is anticipated to continue through to mid-February on a nominal 40m x 40m pattern with the results to be used in calculating the maiden Mineral Resource estimate for Monty in the New Year.
Farm-In / Joint Venture Agreement
As announced in Talisman's September 2015 Quarterly Activities Report, Sandfire has provided Notice that as of 30 September 2015 it had sole-funded $10 million of exploration expenditure at Talisman's Doolgunna projects. Following the satisfactory audit of this expenditure, Sandfire has now formally earned a 51% interest in the Doolgunna project tenements. Formal transfer of the 51% interest is underway.
Sandfire has recently provided a further Notice stating it has sole-funded a further $5 million of exploration expenditure in order to earn an additional 19% interest in the Doolgunna projects tenements.
The terms of the original farm-in were in an agreement dated 20 December 2013 ("Farm-in Agreement") as announced to the ASX on 20 December 2013. Talisman is currently auditing this claimed expenditure before formally transferring the 19% interest to Sandfire.
As Sandfire has now reached the $15 million expenditure threshold (project to date) Sandfire's sole-funding obligation at Springfield has ceased and an unincorporated Joint Venture has been formed between Talisman and Sandfire. Talisman will now fund 30 per cent of all expenditure at Springfield, with Sandfire funding the remaining 70 per cent.
Sandfire has been appointed the initial Manager of the Joint Venture.
The parties are presently negotiating the terms of a Joint Venture Agreement. Pending the entering into of this agreement, the Farm-in Agreement continues to bind the parties.
The Joint Venture has held its first meeting to approve the budgeted expenditure of $7.5 million on exploration over the next three months. This programme and budget is commencing December 2015. Talisman's share of this approved budget is approximately $2.25 million and an initial cash call has been made and is payable by 31 December 2015.
Planned Regional Exploration Activity - December 2015 to February 2016
Joint Venture activities for December 2015 to February 2016 are planned to include exploration activities in addition to the continuing definition and infill drilling of the Monty mineralisation.
These planned activities include drilling programs that are stepping further afield and actively targeting additional accumulations of mineralisation along the 5km long Monty trend and also within the broader Springfield Project, which remains extremely prospective for further discoveries.
The timing of planned exploration drilling at Springfield outside of the Monty resource drilling is dependent on the availability of the RC drill rig and its ability to be released from drilling pre-collar holes for the Mineral Resource definition program.
Monty Deeps
An exploration target outside of the Monty mineralised envelope (Monty Deeps) is planned to be tested for the potential to host additional massive sulphide accumulations in proximity to the existing Monty Lower Zone mineralisation.