NTL - New Talisman Mine - New board & Directors

[suse]

OK the clock is ticking on this, lucky we can email the copy through.

After the info form the AGM, are there any fence sitters here persuaded to go in on the spp or give it a miss?

I certainly wont be going the full 15k, but have 5k or 10k to maybe go in. I've given myself a deadline if not done by 5pm today then will leave it.

I'm still fence sitting because I'm in the red now and really not sure if I want to throw more money at it. Am feeling like I am on a run of bad investment decisions at the moment so would like to stop that trainwreck.

[Chippie]

I went to the meeting along with 50 or so other shareholders. In my opinion it was a very buoyant meeting with an interesting video inside the mine and a good presentation from Wayne Chowles. My main take was the importance of the proposed concentrator (initially with a pilot plant) to dramatically reduce the extracted ore to just 5% of the excavated volume. By keeping the majority of the excavated waste inside the mine this then significantly increases the volume able to be mined within the bulk sampling consent conditions and accelerates access to the recently confirmed high resource veins over the next 3 years once the bulk sampling period commencement is triggered in December 17. Other advantages of the concentrator is the ability to use lighter vehicles along the access road and being able to cost effectively transport the concentrated ore offshore for processing. Other takes were the water accumulating below Level 12 should be easily pumped out, the lines are still open with Oceania and the Rahu discussions are currently moving slowly but are not managements priorities currently focussed on Talisman.

Any others at the meeting may like to correct or add.

Below are my personal notes from the meeting

Amount of SPP funding will determine how fast NTL can progress the mine. Concentrators are a big part of the plan and need funding. My understanding is that they would need one for each work-face which potentially looks like 2 or possibly 3 at this stage.

They have been talking to Oceania about TOLL treatment; there are a lot of options including Fiji where Matthew has visited an operation

They stated they are confident “no issues” with regards to water
• “Closed circuit for everything including water”. Waikato regional council already approved as part of mining permit
• Oceania pumps the entire water table at their mine.

Silver ratio to gold is 4 to 1. Prior to the meeting one of the geologists said that Gold is the priority to recover so they may only recover 2/3 of the silver (ratio will come out with the final plan)
Starting work in December, first results of Bulk sampling will be in January

They have a 25 year mining permit. The impact (environmental?) has been assessed as minor under the district plan and they will continue to comply with the Crown Minerals and District plan requirements after the bulk sampling phase.

They are working with HDC on number of trucks per day. Matt mentioned they have 4 to 9 trucks per day approved under the current agreement and that there are no limits for the bulk sampling phase.

It was invaluable flying up to Auckland for the day to talk to the Management team face to face. My personal opinion is that they know what they are doing and I will take up all of my SPP entitlement.

It was also good to meet Clints and Mibo after the meeting. Sharetrader contributors were well represented along with Paint it Black. Robbo24, Pancake and DemGainzz (from Hotcopper) were there also (just looking at their posts on hotcopper)

Please feel free to correct any comments above if you heard it differently to me

[Fatboyj]

I'm still fence sitting because I'm in the red now and really not sure if I want to throw more money at it. Am feeling like I am on a run of bad investment decisions at the moment so would like to stop that trainwreck.

Seriously know the feeling. MPG and Oceania have gone red. Only saving grace of AIR is being hammered too. Oh the woe.

Lets get National back into power, pipeline fixed, oldies buying double glazing in their retirement units. An beatniks finding another frog to save somewhere else.

[Pipi]

I was fence sitting, but yesterday purchased my SPP. I only got $3k worth as life is a bit expensive at present and that was all I could scrape together, would of got more if I had the spare cash. Yes I could of purchased cheaper on market, but my thoughts were the company needs the money and support to get this things rolling, so decided to do my bit to help.

[Chippie]

I was fence sitting, but yesterday purchased my SPP. I only got $3k worth as life is a bit expensive at present and that was all I could scrape together, would of got more if I had the spare cash. Yes I could of purchased cheaper on market, but my thoughts were the company needs the money and support to get this things rolling, so decided to do my bit to help.

The options will also have some value. My own calculations make me think I am better off with the SPP + options if shareprice on market is 1.9 cents or more. Of course I am making assunmptions that the share price will be more than 5.5 cents in the next couple of years

[Landyman]

I wasn't able to attend - devils advocate questions

How much does a concerntrator cost? Sounds pretty big.
Why is it necessary to use shareholder funds instead of bank debt to fund? Have the banks turned them down/don't want the gamble?
If NTL was funded to 2020 (I think it was), the concerntrator wasnt necessary when this comment was made?

Now with glass half full.
Thanks for the updates, very helpful, and things sound promising. I have jumped off the fence, and will buy in, though cant afford to go the whole hog at the moment.
Again, thanks for the notes from the meeting.

[Yoda]

Thank you all for commenting about the meeting. Encouraged to know that you came away positively I wish everyone all the best and a very merry Christmas this year hopefully haha.... hopefully it will bump us up the share Trader game ratings.. I did manage to sell some at 0.027 and got them back at .019 . I wonder how the share price will fair after Saturday

[Chippie]

From what I understand there is alot of options and cost differences with concentrators. Apparently they can be customised depending on the specific material coming out of the mine.

NTL is funded to continue the bulk sampling etc to 2020. But they want the addtioanl funding to do things faster as per the SPP offer document. The concentrators are a change and require the SPP money, but they are smply to get alot more gold out during the bulk sampling which also reduces the costs per ounce.

Bank funding was qustioned at the meeting. The reponse was that banks will require the financial feasibility study (including mining plan?) to be completed the banks loan money.

[Leftfield]

....Bank funding was qustioned at the meeting. The reponse was that banks will require the financial feasibility study (including mining plan?) to be completed the banks loan money.

Don't all shareholders deserve this sort of info'?? IMHO the SPP offer document does not provide enough information for share holders to make a reasoned decision.

[Mbro]

[QUOTE=Chippie;685232]The options will also have some value. My own calculations make me think I am better off with the SPP + options if shareprice on market is 1.9 cents or more. Of course I am making assunmptions that the share price will be more than 5.5 cents in the next couple of years [/QUO

AGM: I attended the meeting from Wellington too, to assess SPP. I am now taking it up. Its a good deal I calculate and as Chippie - who I met & discussed with at AGM - and previous commentator state, concentrator is likely a great step forward. Funding it supports company plans for rapid progress. I am in favour.

I read yesterday between the lines that what shareholders don't take has ready buyers, they are just offering us first.

Concentration 1:4 or maybe 1:5. Cashflow would go through the roof over this 20,000 cu m2 period.

The board & staff are committed and seem to know what they are doing. A lot of finance skills there I note.

There is probably a lot, & I mean a lot more than 400,000 oz in our mine, very rich ore, and most likely cheaply extracted. Remember that rock came out of level 14 with 1500 gms/ton gold in 1914. Keep that in mind. I see $12m profit - $600/oz profit on 20,000 oz - even without concentrator - a year likely soon, & on P/E of say 10 that's $120m cap, 5c/share with 2.7 b shares. just my guess.

Bank finance for a new stage gold miner anywhere in the world? Not a snowballs chance. Equity or nothing, lol