Wonmunna

Text Box: Talisman Mining Ltd 100% Iron The Wonmunna iron project is situated in the heartland of the east Pilbara iron ore mining industry, with three major mines (West Angeles, Area C, Hope Downs) within 20km of the lease boundary - Figure 1 : Wonmunna Project - Location. The Wonmunna project comprises five iron prospects, each of which is considered to have potential for the definition of significant iron ore resources. These prospects are shown in Figure 2 : Wonmunna Iron Ore Prospects and are summarised as follows: Prospect Target Target Size Drillholes NMM Marra Mamba I.F. ~5,500m strike 35 SMM Marra Mamba I.F. ~5,200m strike 0 EMM Marra Mamba I.F. ~2,500m strike 0 CCID Channel Iron ~15,000m strike 68 ECID Channel Iron ~3,000m strike 0 The two drilled prospects, NMM (Northern Marra Mamba) and CCID (Central CID), are in part geographically coincident, with the iron formation almost totally overlain by channel iron deposits. The majority of reconnaissance drilling completed to date has targeted this outlier of Marra Mamba Iron Formation in the core of a synclinal fold structure - Figure 3 : Wonmunna NMM RC Intercepts. By default, large areas of the overlying CCID (Central CID) has also been evaluated by this drilling. It is important to note that the Marra Mamba Iron Formation has been interpreted largely from aeromagnetic data, being mostly obscured beneath channel iron deposits or recent surficial deposits. This is a unique situation as elsewhere in the Hamersley Basin the iron formation almost always outcrops as prominent strike ridges. Initial reconnaissance drilling has therefore been completed ‘blind’ in order to confirm the aeromagnetic interpretation. Reconnaissance drilling has been completed along pre-existing exploration tracks at nominal 100m intervals between drillholes, closing to 50m intervals in some locations. Distances between drill lines vary from 500m to 1,200m. Many of the drillholes failed to penetrate all of the iron formation and, by association, all levels of potential iron mineralisation. Of the 35 relevant drillholes completed to date and for which assay data have been received, a total of 22 drillholes have intersected significant (>50% Fe) iron mineralisation. The remaining drillholes either did not intersect the iron formation or returned only low grade (<50% Fe) mineralisation. This 63% strike rate is considered very significant given the exploratory nature of the drilling program. In addition to defining the iron formation, the reconnaissance drilling has been successful in locating hematite – goethite iron mineralisation at a number of wide spaced localities in this large area. Wide intercepts of moderate to high grade (55 – 61% Fe) have been reported, with impurities for the most part being of sufficiently low tenor to constitute DSO (Direct Shipping Ore) grade ore. Drilling is at this stage too wide-spaced to confidently ascertain how, or if, these occurrences might be linked and, by corollary, to determine any meaningful ore resource. Resource drilling of the NMM prospect is scheduled to commence in March, 2008. Copper - Zince - Gold - Silver The Wonmunna project area, 70 kilometres northwest of Newman on the Great Northern Highway, is the most advanced of the Jeerinah projects with previous reconnaissance drilling and costeaning completed by WMC, and stream, soil and rock geochemistry completed by Talisman together with a detailed aeromagnetic / radiometric survey and limited reconnaissance drilling. Extensive soil geochemistry at 200m x 40m centres has defined a copper-zinc-gold-silver anomalous horizon in the Jeerinah Formation over approximately 40km of strike around the margins of the Parmelia Syncline. Within this horizon, soil geochemistry has identified a series of strong copper-zinc-gold-silver anomalies possibly indicative of underlying, primary massive sulphide mineralisation - Figure 4 : Wonmunna Soil Sampling (Copper). Drilling of angled reverse circulation (RC) drillholes was completed in traverses across strong copper-in-soil anomalies, often with associated strong zinc and/or gold and/or silver anomalism. Drillholes were angled at either 60o to the north or south, dependent upon local bedding dips. Several strong soil geochemical anomalies were not tested by drilling in this program, owing to either difficulties in access or to being too close to the Great Northern Highway, requiring permission from the Department of Main Roads to complete drilling. Such permission was not able to be obtained during the drilling program. Drillhole locations are shown on Figure 5 : Wonmunna Copper Soil Anomalies and RC Drilling Collars. The drilling has indicated that low grade copper mineralisation (0.1 – 0.5%), with peak values to 19m @ 0.43% copper, is extensively developed in the weathered zone over sulphidic black shale. Silver is also enriched in the weathered zone to 1m @ 24g/t silver. Significant copper mineralisation was also intersected in fresh (unweathered) sulphidic black shale at Brendans (6m @ 0.37% Cu, including 1m @ 1.00% Cu) and Main Road (5m @ 0.54% Cu, including 1m @ 1.63% Cu, and 7m @ 0.52% Cu, including 1m @ 1.23% Cu). These results are strongly indicative of primary mineralisation in disseminated sulphides. Similar primary mineralisation has been previously reported (20/02/2007) from previous reconnaissance drilling of the Tavros prospect where drillhole WNC011 intersected 13m @ 0.34% Cu, including 1m @ 1.14% Cu). Follow up drilling of this intercept in the current program (WNC021) failed to intersect this mineralisation. In summary, the first two phases of reconnaissance drilling have proved significant primary sulphide copper mineralisation at three (Bull/Tavros, Brendans, Main Road) of five drilled prospects. The Company remains confident that the project retains excellent potential for the definition of significant base and precious metals mineralisation. The Company is examining various options to progress this potential whilst remaining focussed on its iron ore activities.

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Talisman Mining Ltd

Wonmunna Project

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