NTL - New Talisman Mine - New board & Directors

[Joshuatree]

Cap Raising JT? Fully funded until 2020. Bulk Sampling kicking in this year will only add to the cashflow...Oh and the options which are worth another 2+million to the company are well in the money at this point.
You were right earlier...you really haven't been following NTL have you?

Im trying but pretty slow collating etc. Please correct or add to this (anybody)

Im guessing expenditure will increase greatly as they develop the mine so how can you estimate the cash burn accurately like that.
$387,163 for qtr gone and $506,650 set for next qtr

$5,334,000 cash nice

"Proven Reserve of 28,800 oz AU
Measured Indicated and Inferred but not yet proven 312,800 @ 22gmT nice and lots more to prove up too.

Based on current plans the company is fully funded for completion of the Talismandeeps resource modelling and completion of prospecting and Bulk sampling through to2020. The Board will consider acceleration and/or expansion of exploration andextraction plans subject to funding. "

That last line is important and quite likely, speeding up, and could mean a cap raise for development as opposed to just bulk sampling and prospecting. Im guessing Shareholders would support a cap raise if things keep going as well as they have.

The operation looks pretty original and one would think lots of dough needed to upgrade to work it and for safety , mining equipment, fans etc

The talisman was mined on 16 levels and good access is available only in level 8 currently where sampling and drilling is in progress.

With narrow vein mining it can be expensive to drill out a reserve and at times miners don't bother; just follow the veins.

All in the timing re bulk sampling paying for costs and creating cashflow and how much waste around the veins has to be taken out, delays, injuries etc.

You may have re 20 million shares Jonu costing re $65,000 now worth re $377,000 plus oppies maybe, congrats esp being derisked and multi bagged and if free carried

Many others get in early and free carried, multi bagged?

[Flugenbear]

I'm almost certain they need to raise more money to get full scale mining going. Possibly not too much though.
They are good for the duration of the bulk sampling project for 2 years.
Exact cash requirements have no doubt changed from the last capital raise July/August last year, but back then they wanted 12 million and got about half of that.
I'm sure they will be evaluating the next steps and perhaps we'll hear more in the feasibility study to be released soon.
But doesn't really matter how you look at it, it's never looked so good...though still many boxes to tick off.

[Blue Horseshoe]

Gold up $20 dollars over night, should bode well for the mining stocks today and imo the future.

[jonu]

Im trying but pretty slow collating etc. Please correct or add to this (anybody)

Im guessing expenditure will increase greatly as they develop the mine so how can you estimate the cash burn accurately like that.
$387,163 for qtr gone and $506,650 set for next qtr

$5,334,000 cash nice

"Proven Reserve of 28,800 oz AU
Measured Indicated and Inferred but not yet proven 312,800 @ 22gmT nice and lots more to prove up too.

Based on current plans the company is fully funded for completion of the Talismandeeps resource modelling and completion of prospecting and Bulk sampling through to2020. The Board will consider acceleration and/or expansion of exploration andextraction plans subject to funding. "

That last line is important and quite likely, speeding up, and could mean a cap raise for development as opposed to just bulk sampling and prospecting. Im guessing Shareholders would support a cap raise if things keep going as well as they have.

The operation looks pretty original and one would think lots of dough needed to upgrade to work it and for safety , mining equipment, fans etc

The talisman was mined on 16 levels and good access is available only in level 8 currently where sampling and drilling is in progress.

With narrow vein mining it can be expensive to drill out a reserve and at times miners don't bother; just follow the veins.

All in the timing re bulk sampling paying for costs and creating cashflow and how much waste around the veins has to be taken out, delays, injuries etc.

You may have re 20 million shares Jonu costing re $65,000 now worth re $377,000 plus oppies maybe, congrats esp being derisked and multi bagged and if free carried

Many others get in early and free carried, multi bagged?

Nice to see you taking more than a passing interest now JT.

To clarify at the start, I don't have 20 million shares and I don't know where you plucked that figure from. If I did, at last trade they would be valued at $580,000 not 377k. I don't hold any options.

I get a little frustrated with the second guessing of the company. They have laid out a plan to bulk sample, have costed it and said they are fully funded to do it. They have the consents to do it. If the sampling is true to grade (or better!) it will add significant cash, as will the options which at present are well in the money. If they wanted to dive into other parts of the mine a cap raising would be one option as would debt. At today's interest rates I might be inclined towards debt.

Many of the fears and unknowns you get with a start up miner don't apply to NTL. They have 100 years of remarkable data. The old timers pulled out stuff with eye watering grades...samples of which are in the Auckland Museum. They already have a hole in the ground and they are already 300+m underground, suring it up and ventilating, wiring, etc.

Day 10 today for the "in the next 10 days announcement".

[ddrone]

Day 10 today for the "in the next 10 days announcement".

Don't be surprised if they meant 10 "working" days which puts us at tomorrow or Monday depending on where you're counting from.

[Crow]

Don't be surprised if they meant 10 "working" days which puts us at tomorrow or Monday depending on where you're counting from.

Exactly, but let's hope it is today.

[jonu]

Don't be surprised if they meant 10 "working" days which puts us at tomorrow or Monday depending on where you're counting from.

Could be I guess...but that would be second guessing! I'll just take it as read.

[steveb]

There is a lot of usefull info from an article posted on ST by Bullish last year.Still very relevant and insightfull.

Very good artidle on the co.


New Talisman Gold Mines Ltd to enter cash generating bulk sampling phase
Tuesday, May 24, 2016 by Proactive Investors

New Talisman Gold Mines Ltd to enter cash generating bulk sampling phase
New Talisman Gold Mines Ltd (ASX:NTL, NZX:NTL) is ready to initiate a lucrative bulk sampling program at the 100% owned Talisman gold mine in New Zealand.

Based on the average ore reserve grade of 10.8 g/t gold and the strong gold price, New Talisman has the potential to generate NZ$30 million per annum during the bulk sampling phase.

The company is currently in the process of raising up to NZ$12.3 million through a rights issue to fund the Talisman gold mine into the bulk sampling phase.

The successful development of the Talisman gold mine has enabled the company to attract institutional interest from globally significant entities such as Newcrest Mining Ltd (ASX:NCM) and Amer International.

The company is expected to soon finalise an agreement with Newcrest over the Rahu tenement, which lies immediately to the north and along strike from the Talisman Mine.

Amer International, a Fortune 500 major Chinese group with expertise in the manufacturing and metals industry are also potentially taking a significant stake in the New Talisman.


Background

New Talisman retains a 100% interest in the Talisman Mine and Rahu Project which is immediately to the north of the Talisman mine.

Historical production from the 10 mines situated within the current New Talisman mining permit is reported at over 4 million ounces of gold bullion at an average recovered grade of 23.1 g/t gold.

The company also holds 17.9 million shares in Broken Hill Prospecting Ltd (ASX: BPL) representing a current market value of circa $1.7 million.


Talisman gold mine

The Talisman Mine was mined on 16 levels and good access is available on level 8 where the company has completed refurbishment for extensive channel sampling and drilling.

Talisman comprises the Maria, Crown/Welcome and Mystery veins and level 8 leads into Crown, Mystery Woodstock and Dubbo veins.

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.

Start-up capital to generate this level of revenue was estimated at NZ$5.4 million.

The majority of the ore will initially be derived from the Mystery and Dubbo sections.

The study also allowed the company to announce a maiden ore reserve of 82,500 tonnes of at 10.8 g/t gold for 28,800ounces, and 48.1 g/t silver for 127,800 ounces.

New Talisman has successfully processed ore samples from the mine under a toll treatment agreement and the gold and silver was profitably extracted and sold.

Mineralised potential within the talisman permit area has been estimated at 0.55 million to greater than 2 million ounces of gold. Additional silver potential is measured at 1.5 million to 6 million ounces.


Bulk sampling

The company is now fully geared to proceed with the project, having completed regulatory requirements to initiate bulk sampling.

Bulk sampling will see the company extract on average 650 tonnes per month for a period of 18 months to 24 months.

The current plan to extract 650 tonnes per month is conservative relative to the granted consents, which allow for up to 20,000 cubic metres of ore to be removed per annum.

Based on the average ore reserve grade of 10.8 g/t gold, a 90% recovery and US$1,300 per ounce gold price, revenues of NZ$30 million could potentially be generated.

The bulk sampling phase will provide information that will allow the company to optimise the overall project plan and transition into the initial phase of the longer term production plan.


Rahu Newcrest opportunity

Newcrest and New Talisman signed a non-binding agreement in May 2015 pertaining to a proposed farm-in and joint venture over the Rahu exploration project.

Rahu provides exploration upside for New Talisman and is part of important foundations for building a working relationship with one of the world's leading gold producers.

The joint venture agreement, covering equity participation and operatorship arrangements is expected to be finalised in the coming weeks.

Newcrest farmed into a nearby New Zealand gold project in 2015 with Laneway Resources Ltd (ASX:LNY).

Should a joint venture agreement be formalised at Rahu, an avenue for future potential strategic opportunities will be created.


Rights issue

The company is seeking to raise up to NZ$12.3 million through a renounceable rights issue of 3 new shares for every 1 existing share held.

The issue price is NZ$0.005 or A$0.005 per share and the offer closes on 14 June, 2016.

Funds raised from the current rights issue will be used in the following priority:

- Initiate bulk sampling programme;
- Accelerate bulk sampling programme;
- Complete feasibility study;
- Accelerate transition from bulk sampling to phase 1 of longer term production;
- Build out additional JORC compliant resources; and
- Fund obligations under a Rahu joint venture.


Strategic shareholder

New Talisman has had continuing negotiations with Amer International, a major Chinese group with expertise in the manufacturing and metals industry.

Amer is a major supplier of copper products and cables which last year recorded US$43.6 billion in sales.

Amer's founder Wang Wenyin, is estimated by Forbes magazine to be China's 9th wealthiest person having a net worth of US$7.9 billion.

Amer have indicated that they will visit New Zealand in the next month to advance discussions on subscribing for a potentially significant stake of new shares in the company.


Infrastructure

The Talisman mine is situated mid-way between the well-established towns of Paeroa and Waihi in the Hauraki District of North Island.

The proximity to these towns provides excellent access to local infrastructure and a transport network. A sealed road leads to within 1 kilometre of the mine site.

Lines carrying 3 phase power are equipped to the mine site can be reconnected at minimal cost.

There is a sufficient area for ore transport requirements, engineering infrastructure, offices and stores area.

The company has water take consents and has designed an environmentally friendly water reticulation system.


Analysis

New Talisman has successfully received necessary permits and regulatory requirements to restart production at one of New Zealand's largest historically producing gold mines.

Securing funding in the current rights issue is the final hurdle for the company to initiate bulk sampling which has the potential to generate revenues of up to NZ$30 million per annum.

The NZD gold price is trading at NZ$1,850 per ounce, a peak level that has not been reached since early 2013.

New Talisman is currently dealing with two high profile companies being Newcrest Mining and Amer International and agreements with either company will act as catalysts for the stock.

A joint venture agreement with Newcrest is expected to be finalised in the coming weeks and has the potential to fast track exploration at the Rahu permit.

Preliminary metallurgical testing at Talisman has confirmed that the ore does not contain unwanted contaminants.

Given the area is known for historical gold production, it is closely situated to key infrastructure such as sealed roads, transportation networks, power and water.

New Talisman Gold Mines advances development of New Zealand gold mine
Development of the Talisman Mine is continuing with the grant of Change of Conditions, completion of a comprehensive traffic survey and progress on the remaining requirements by Worksafe NZ.

An applied for an extension of land over the Rahu area, which is generally contiguous with the Talisman permit mineralisation.

New Talisman Gold Mines raises funds to continue mine development
New Talisman now has additional funds for its continued development of the Talisman Mine in New Zealand. Earlier in the month the delivered a major milestone with the first production of commercial gold from the historical mine site in over 30 years.

New Talisman Gold Mines makes milestone gold and silver sale
The first sale of gold and silver from the Talisman Mine in New Zealand has generated revenue of about NZ$100,000 (A$89,680) for New Talisman Gold Mines. NTL is now a revenue generating company and there could be more to come.

New Talisman Gold Mines samples 1.5oz/t gold in New Zealand
Sampling of stockpiled ore from has returned very high grades of gold averaging 1.5 ounces per tonne, setting the foundation for commercial terms on processing ore from New Talisman Gold Mines’ Talisman gold mine in New Zealand.

New Talisman Gold Mines prepares Talisman ore for pilot testing
Sampling and pilot processing of stockpiled ore from the Talisman Mine in New Zealand will allow New Talisman Gold Mines to ascertain the value of its ore and finalise toll treatment arrangements. Previous spot samples had returned average grades greater than an ounce per tonne.

New Talisman Gold Mines granted operational authority
The receipt of authorisation to enter and operate the Talisman gold mine permit in New Zealand puts New Talisman Gold Mines another major step ahead on the road from explorer to producer.

New Talisman Gold Mines on track to commence year-end gold production
First production from New Talisman Gold Mines’ Talisman gold mine in New Zealand remains on track to start by the end of this year. The company has raised $634,069 from its rights issue.

New Talisman Gold Mines to fast-track production in New Zealand
Dual-listed New Talisman Gold Mines is fast-tracking gold development and production from the Talisman mine in New Zealand. Annualised production is forecast to reach 12,115 ounces of gold and 36,000 ounces of silver over an initial mine life of 5 years

[Joshuatree]

Cheers jonu. I don't know where i got 20 mill e ither as i have just looked at the top 20 again and see no 20 is re 14 million and you said you were just out of that.And that info may be old anyway as i noticed on the website the latest presentation is 3 or 4 years old.

Re the bulk sampling to 100,000 tonnes now, was 20,000 i think
At the moment they look to be manually sampling 5 kg bags. Bulk sampling would be mining with all the costs and machinery safety gear, mine upgrade to modern standards etc so can you clarify this issue? Thanks

[jonu]

Cheers jonu. I don't know where i got 20 mill e ither as i have just looked at the top 20 again and see no 20 is re 14 million and you said you were just out of that.And that info may be old anyway as i noticed on the website the latest presentation is 3 or 4 years old.

Re the bulk sampling to 100,000 tonnes now, was 20,000 i think
At the moment they look to be manually sampling 5 kg bags. Bulk sampling would be mining with all the costs and machinery safety gear, mine upgrade to modern standards etc so can you clarify this issue? Thanks

They plan to start bulk sampling in December. They are fully funded to do it.