Originally Posted by
Ltw
Questions from the Quarterly Activities Report to 31 March 2020
The primary focus has been on delivering a production route for the Talisman ore following the completion of a majority of the testwork at the pilot plant. I would like to think they are very close/ if not have this route over the line for the AGM.
Question 1 – Please update us on this and if more than one option is still under review what is the process of making timely efficient decisions on this?
The testwork has informed the design of the larger plant with a minimum capacity of 300tpm and forms the basis for the consent. Potential site locations were reviewed which may give some flexibility in council and district plans the plant can operate under.
Question 2 – Can you please clarify how many more consents or applications are required before full production is achieved and what is the current turnaround time for these consents
Talisman Mine Plan
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 cut-off grade allows for a review of areas such as larger parts of the Woodstock zone which are likely to become economic at the current gold price. Question 3 – Is reviewing these possibilities a distraction to production or current waste of shareholder funds? If not please explain why. As they can be taken up at a later stage
The period saw the completion of the main operational plan which broadly sets out the developmental and infrastructure requirements needed to support the mine.
The work completed on the plan during the quarter and which will accompany an application for mining will assist the team to
• Identify options for exploitation of the orebody and risk/reward analysis to identify the option with the highest value outcome.
• Design flexible mining and engineering infrastructure required for the most favourable option,
• Adopt a long term mine development schedule and production profile.
The remaining work on the plan was used, as noted above, to identify areas, both within the bounds of the existing mine and the larger permit area, with the potential for economic ore deposits which can be readily accessed while restrictions and distancing measures are in place. Following the completion of the resource estimate review the plan will be further developed to exploit any areas within the resource which may not have been previously included.
Question 4 – Can we get a presentation during the AGM of the long term mine development schedule and production profile, main operational plan and the list of infrastructure required
At the same time evaluation of the potential for a collaboration on an independent processing operation is being undertaken which may provide an ability for an alternate funding structure to develop a plant for toll treatment by Talisman. More recently a series of discussions with a high-profile NZ industry group were advanced. The focus was on 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 delivery of a heads of agreement setting out the key criteria that would need to be met for the development of a Joint venture.
Question 5 – Please update us and provide more information on this
During the quarter, an independent planner was contracted to assess the impact of planned mining operations, which are broadly similar to those for which the operation is already consented, against the requirements of the Operative Hauraki District Plan. This assessment is complete and has identified a number of technical investigations that will be required to underpin the resource consent application.
Question 6 – Please clarify what the technical investigations are? And how you are progressing with these?
While much of the required information has been quantified through the underground rehabilitation, prospecting and test mining programme over the past 2.5 years, there are some aspects that need addressing by subject matter experts. Key individuals and groups with this expertise have been identified and cost estimates and their availability have been sought
Question 7 – I note you are bringing in a number of experts for different areas. I believe this is a good option have you given them a clear scope and list of deliverables and how is this been managed?
Question 8 – Has this been added to the schedule?
During the quarter, the company reviewed a number of opportunities of which a small NZ based project with an existing ML and resource was under review when Level 4 lockdown was 5 implemented. Any further work has had to be delayed until restrictions are at an end and the site can be accessed for field review.
See Question 3