Announcement PDF TALISMAN MINING LIMITED ABN 71 079 536 495 ANNUAL REPORT FOR THE YEAR ENDED 30 June 2023 1 Corporate Directory DIRECTORS Mr Kerry Harmanis Non-Executive Chairman Mr Andrew Munckton Managing Director Mr Jeremy Kirkwood Non-Executive Director Mr Brian Dawes Non-Executive Director Mr Peter Benjamin Non-Executive Director COMPANY SECRETARY Mr Alex Neuling REGISTERED & PRINCIPAL OFFICE Suite 1 Ground Level – 33 Colin Street West Perth WA 6005 Telephone +61 8 9380 4230 Facsimile +61 8 9382 8200 Website: www.talismanmining.com.au AUDITORS HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street Perth, Western Australia 6000 Telephone +61 8 9227 7500 Facsimile +61 8 9227 7533 SHARE REGISTRY Link Market Services Level 12, QV1 Building 250 St Georges Terrace Perth, Western Australia 6000 Telephone +61 8 9211 6670 SECURITIES EXCHANGE LISTING Australian Securities Exchange Limited Level 40, Central Park 152-158 St Georges Terrace Perth, Western Australia 6000 ASX Code: TLM 2 TABLE OF CONTENTS Letter from the Chairman 4 Review of Operations 5 Directors’ Report 19 Remuneration Report 24 Auditor’s Independence Declaration 30 Independent Auditors’ Report 31 Financial Statements 36 Notes to the Consolidated Financial Statements 40 Directors’ Declaration 60 Additional Securities Exchange Information 61 3 LETTER FROM THE CHAIRMAN Dear Talisman Shareholder, I am pleased to present Talisman’s 2023 Annual Report as we embark on a significantly expanded exploration push in the last few months of this year and moving into 2024. The past year has seen Talisman take significant steps towards making a maiden discovery at the Lachlan LeadZinc-Silver and Copper-Gold Project in NSW while also expanding our portfolio with the acquisition of the highly prospective Mabel Creek Copper-Gold Project in South Australia’s world-class Gawler Craton. Our work in NSW has built on the significant investment we made in two regional-scale geophysical surveys last year – a 15,456-line-kilometre Airborne Gravity Gradiometric (AGG) survey and a 6,285-line-kilometre Airborne Electro-Magnetic (AEM) survey. These surveys revealed a multitude of strong geophysical targets that have been integrated with our ground-based geological and structural mapping programs and geochemical soil sampling. While initial drill testing through the year focused mainly on geophysical targets, we have since refined our approach to focus on those targets that are also supported by strong geological and other evidence. This has allowed us to re-prioritise our exploration efforts, with a targeted new program of Reverse Circulation and diamond drilling kicking off in the September 2023 Quarter. I am confident the Company is now well positioned to capitalise on this exceptional target pipeline, underpinned by a strong balance sheet, a consistent royalty stream and a refreshed exploration focus. At Mabel Creek, the Company has acquired 100% ownership of a significant land package approximately 30km west of Coober Pedy. The land package covers around 1,000km2 of tenure within the Gawler Craton – a region that is prospective for large-scale Iron Oxide Copper-Gold (IOCG) discoveries and hosts numerous world-class deposits such as Olympic Dam, Carrapateena and Prominent Hill as well as significant recent discoveries such as Oak Dam and Emmie Bluff. This region is fast becoming Australia’s premier copper producing area. The Mabel Creek Project spans several significant faults and structures that elsewhere host IOCG-style mineralisation. In recent decades the project has been held by resource majors Teck and Vale, who undertook limited, preliminary geological investigations. Importantly, the barren surface cover is generally 50-100m thick, significantly shallower than at other locations in the Gawler Craton where exploration under +300m of cover is not uncommon. Our work at Mabel Creek to date has consisted of the acquisition of geological and geophysical datasets from the SA government database and initial discussions with Traditional Owners and pastoral leaseholders on access to the project. We expect to be on the ground drilling some exciting initial targets early next year. Consistent with our strong exploration DNA, the Company’s senior leadership has recently undergone significant renewal with the appointment of experienced geologists and mining executives Andrew Munckton and Tim Sharp, respectively as Managing Director and Exploration Manager. Both Andrew and Tim have hit the ground running to ensure that our best projects are drilled and that our discovery program is delivered. We are delighted to have them both on board. I would like to take this opportunity to extend my sincere thanks and acknowledgement to CEO Shaun Vokes and Exploration Manager Russell Gregory, who left the Company earlier in the year. Their contribution to Talisman is greatly appreciated. During the 2023 financial year, we continued to receive monthly royalty payments from the operator of the Wonmunna iron Ore Project, Mineral Resources Ltd (MinRes). In the 12 months to June 2023, MinRes delivered 9.8Mt of iron ore sales for its Utah Hub operations in the Pilbara of Western Australia (of which Wonmunna was the larger portion). Talisman received $7.6 million in royalty payments. Guidance for FY24 from MinRes is for 9.0 to 10.5 million tonnes of iron ore sales from their Utah Hub. At year-end, we retained $9.8 million in cash which, combined with a healthy ongoing royalty income stream, puts us in an enviable position as we ramp-up exploration in NSW and commence exploration in South Australia. In conclusion, I would like to thank my fellow Directors and to extend a special vote of thanks to my fellow shareholders for your support. I am excited about what the next year will bring for Talisman. Yours faithfully, Kerry Harmanis, Chairman 4 REVIEW OF OPERATIONS Overview The last 12 months has seen Talisman Mining Limited (Talisman or the Company) continue to progress exploration activities in New South Wales at the Lachlan Lead-Zinc-Silver-Copper-Gold Project (Lachlan) and acquire the highly prospective Mabel Creek Copper-Gold project in South Australia (Mabel Creek). In addition, throughout the financial year Talisman has reviewed numerous new precious and base metals growth opportunities throughout Australia, focusing on value-accretive transactions with the potential to create long-term shareholder value. The Company continued to receive monthly royalty payments throughout the financial year from Mineral Resources Ltd (MinRes), the operator of the Wonmunna Mine, which forms part of MinRes’s Utah Hub Iron Ore operations in the Pilbara region of Western Australia. MinRes commenced production from Wonmunna in March 2021 and Talisman is entitled to an uncapped 1% gross revenue royalty on all metals produced and sold from the mine. The Utah Hub delivered 9.8 million tonnes of iron ore sales for the 12-month period ended 30 June 2023, with Talisman receiving $7.6 million in royalty payments from Wonmunna. The potential ongoing Wonmunna royalty revenue stream puts the Company in a unique funding position for a junior exploration company, allowing Talisman to pursue ongoing systematic exploration at its Lachlan and Mabel Creek Projects in combination with reviewing additional new metalliferous growth opportunities. Talisman continued to expand its tenement position in the highly prospective Lachlan Fold Belt region of NSW during the year, increasing its total granted exploration licence area at the Lachlan Project to approximately 7,700km2. This has consolidated the Company’s strong tenure portfolio in this world-class mineral province. During the financial year, Talisman completed two regional-scale geophysical surveys – a 15,456-line kilometre Airborne Gravity Gradiometric (AGG) survey and a 6,285-line kilometre Airborne Electro-Magnetic (AEM) survey using the VTEM™ Max helicopter-borne AEM system. These two large-scale geophysical surveys and their subsequent data processing and interpretation represent a significant investment in Talisman’s highly prospective tenement portfolio. In addition to the geophysical surveys, exploration activities continued at the Lachlan Project with ongoing soil sampling and mapping programs completed and several Reverse Circulation (RC) percussion drill programs undertaken targeting both geophysical and soil anomalies. At the Company’s Mabel Creek Project, land-access agreements with Traditional Owners and pastoral leaseholders were commenced to allow ground-based exploration activities in 2024. In addition, a significant data acquisition effort was undertaken with the South Australian Geological Survey to secure all the relevant historical information associated with the Mabel Creek and surrounding projects. Talisman is currently planning to complete new geophysical programs and awaiting analysis of historical drilling information to inform the next phase of exploration work at Mabel Creek. 5 Lachlan Lead-Zinc-Silver-Copper-Gold Project, NSW Talisman’s Lachlan Project consists of four discrete project areas – the Central Lachlan Lead-Zinc-Silver, Dandaloo Copper, Hillston Copper-Gold and Elvis Porphyry Copper-Gold Projects, which cover a combined area of over 7,100km2 of granted exploration tenure in the highly prospective Cobar Basin Rift and Junee-Narromine Volcanic mineral belts of NSW (Figure 1). These mineral belts are well-established mining districts with multiple operating long-life gold and base metal mines and several recent significant exploration discoveries including Aurelia Metal’s Federation polymetallic deposit and Peel Mining’s Mallee Bull, Wagga Tank and Southern Nights deposits. Talisman’s exploration strategy at the Lachlan Project is focused on the regional geological architecture, principally the north-northwest trending rift controlling structures. Proximity to the margins of major basin faults and deepseated regional basement lineaments are important factors for mineral deposit formation and Talisman has a meaningful tenure position on the eastern side of the Cobar Basin Rift. Figure 1: Talisman’s Lachlan Pb-Zn-Ag-Cu-Au Project, showing key tenements, nearby mines and prospects and underlying geology. 6 The Company has identified multiple gold and base metal exploration targets at its Central Lachlan, Dandaloo, Hillston and Elvis Projects and systematic exploration activities including regional reconnaissance mapping, soil sampling, RC percussion drilling and geophysical surveys advanced during the financial year to inform target prioritisation and test high-priority targets. Regional Geophysical Surveys During 2022, Talisman undertook two large-scale regional geophysical surveys to provide an efficient and costeffective screening mechanism for geophysical anomalism associated with Cobar and Mineral Hill-style mineralisation analogues over large portion of its Central Lachlan Project area (refer Figure 2). Regional Airborne Gravity Gradiometric (AGG) Survey Talisman flew an Airborne Gravity Gradiometric (AGG) survey using the proprietary FALCON® AGG system. FALCON is the world’s most advanced airborne gravity gradiometer technology and provides high-quality gravity data to a resolution of 50m. The survey was flown at a 200m line spacing and covered 15,456 kilometres. Data processing and interpretation was completed by Talisman’s geophysical consultants with over 50 gravity anomalies identified.1 Of these anomalies, 10 have been identified as high priority for follow-up. Airborne Electromagnetic Survey (AEM) Survey In parallel with the regional AGG survey, Talisman undertook an Airborne Electro-Magnetic (AEM) survey using the VTEM™ Max helicopter-borne system. Targeting for these survey areas was at a 200m line spacing and covered 6,285 kilometres (Figure 2). Talisman’s geophysical consultants completed data processing and interpretation and identified over 20 anomalies.2 Talisman has prioritised three of these anomalies for immediate follow-up work due to their location near known mineral occurrences. Baseline exploration work, including geological mapping, regolith sampling and structural mapping and analysis on priority anomalies is ongoing to assist in target prioritisation and preparation for drill testing during the FY24 year. 1 Refer Talisman ASX announcement dated 26 July 2022 for full details. 2 Refer Talisman ASX announcement dated 5 September 2022 for full details. 7 Figure 2: Talisman's FALCON® AGG and VTEM™ Max helicopter-borne AEM survey areas highlighting priority anomalies. 8 Priority Exploration Projects Kaolin Shaft and Durnings (EL8547) Analysis and 3D interpretation of AEM survey data illustrated in Figure 3 enabled the interpretation of structures associated with mineralisation at the Kaolin Shaft prospect, resulting in the interpretation of a second, concealed target area to the north-east of previous drilling. Geological interpretation suggests that the polymetallic mineralisation at both the Kaolin Shaft (Zn-Pb-Cu-Ag-Au)3 and Durnings (Au-Cu) prospects may represent the up-dip expression of a larger mineralisation source – located at depth approximately 900m to the north-east. Best historical results at Durnings include: • 34m @ 1.34g/t Au from 6m and 6m @ 2.1% Cu from 32m (DUR-14); and • 17m @ 3.7g/t Au from 16m including 8m @ 5.3g/t Au from 22m (MD85). The interpreted deeper target is situated at the intersection of the Bluff Fault Zone and Mineral Hill Structure (Figure 3). Both these structures have strong relationships to copper mineralisation and are interpreted to be associated with the Mineral Hill Mine and the nearby Wilmatha copper-gold porphyry prospect, located to the north and northeast respectively. The target area is concealed by shallow cover. No previous exploration is recorded over the area. Drill testing of the target is scheduled for the September Quarter 2023. Figure 3: Kaolin Shaft and Durnings prospects over processed VTEM geophysical image. 3 Refer Talisman ASX announcements dated 22 July 2019 and 6 June 2022 for full details. 4 Refer to exploration reporting for historical tenement EL2305 and exploration by Kennecott Exploration (Aust) Ltd. 5 Refer R00000081, Ninth annual exploration report, EL 2727, Murda Creek, Boona area, 1996. 9 Carpina North Prospect (EL8414) Four RC holes (CNRC0013-CNRC0016) for a total of 876 metres were drilled at the Carpina North Prospect6 during the year to follow up on the gold results returned in drill-hole CNRC0012, which was completed as part of the 2022 drill program and returned 40m @ 0.51g/t Au from 24m down-hole7 (Figure 4). The recent drilling intersected other significant zones of mineralisation below the original discovery hole as illustrated in Figure 5. Figure 4: Carpina North 2023 RC drilling, holes CNRC0011 to CNRC0016. Significant intercepts are labelled. Significant gold results were returned in drill-hole CNRC0014, with several mineralised zones above 1g/t Au encountered down the hole. Intercepts include: • 8m @ 0.71g/t Au from 16m down-hole including 2m @ 1.42g/t Au from 22m down-hole; • 2m @ 2.77g/t Au from 134m down-hole; • 14m @ 0.51g/t Au from 146m down-hole including 4m @ 1.35g/t Au from 156m down-hole; and • 2m @ 1.04g/t Au from 210m down-hole. 6 Refer Talisman ASX announcement dated 20 July 2023 for full details including JORC tables. 7 Refer Talisman ASX announcement dated 26 July 2022 for full details including JORC tables. 10 Figure 5: Interpreted Carpina North Section A-A', along 6423500mN. Holes oblique to section are not projected to section. All of the drill-holes completed at Carpina North intersected a sequence of massive, fine-grained phyllites with occasional psammite interbeds, and the mineralisation appears to be visually associated with intermittent quartz veining hosting polymetallic (galena-chalcopyrite-arsenopyrite) sulphides and silica flooding (Figure 6). Figure 6 – RC chip samples from CNRC0014, 206-212m down-hole, displaying quartz veining and silica flooding. The gold mineralisation has geochemical associations with arsenic (As) and antimony (Sb). These element associations, together with the visual quartz textures, suggest that Talisman’s drilling has intersected the “mixing” zones of a low-sulphidation epithermal gold mineral system. Interpretation of the drill results is ongoing, with further drilling planned to be undertaken in the second half of 2023. 11 Rip & Tear (EL8615) The Rip & Tear Prospect is located on a major north-east to south-west structural lineament. The area is dominated by sandstones and conglomerates of the Girilambone Group and shallow-water Kopyje Shelf and has seen previous shallow exploration focused on a historical working and three outcropping base metal gossans in the area. Extensive historical surface geochemistry and auger drilling delineated strong lead anomalies8, similar to those associated with the Federation and Dominion discoveries. Despite significant surface work identifying these lead anomalies, limited historical drilling has been conducted with only three percussion holes drilled to 60 metres depth in the prospect area. Two grids of Moving Loop Transient Electro-Magnetic (MLTEM) surveying covering the anomalous soil geochemistry, followed by a single 3.3km long line of Induced Polarisation (IP) survey. The exploration model used a Dominion/Federation analogue which has similar conductive anomalies to investigate disseminated base metal sulphide potential. N Rip & Tear EM Plate 1 EM Plate 1 Rip & Tear IP Chargeability Anomaly Rip & Tear EM Plate 2 Interpreted Faults GSNSW Seamless Geology Figure 7: Rip & Tear Anomaly Area (EL8615) with interpreted faults (GSNSW Seamless Geology) and geophysical anomaly locations. The MLTEM surveys identified two discrete conductive anomalies which were modelled into plates as the best fit for a conductive source. Both plates appear to be associated with mapped structures, suggesting that the conductive anomalies are linked to structurally controlled mineralisation using these structures as conduits and depositional sites for sulphides. Plate 1 is a steeply-dipping, 1,200m long plate model with a moderate conductive value of 50 Siemens (S) oriented along the ENE-WSW major structure running through the prospect area (Figure 7). As a second order structure to the regionally significant Mineral Hill Fault, this structure may be associated with localised base metal mineralisation. The conductivity value may be indicative of net-textured or brecciated sulphides lacking complete connectivity. Plate 2 is a NE-SW striking, moderately SE dipping plate model extending over a length of 1,300m with a moderate conductance value of 50S, aligned with a third order structure which also intersects the Mineral Hill Fault (Figure 7). This structure also trends towards the Yellow Mountain workings, where historical Au-Cu-Pb-Zn-Ag mineralisation has been encountered9. Additionally, the IP line surveyed across the Plate 2 MLTEM area identified a discrete moderately chargeable anomaly at shallow depth. This anomaly is immediately adjacent to EM Plate 2, coincident with a topographic high, suggesting an area of basement with silicification possibly related to hydrothermal fluids and sulphide deposition (Figure 7)10. 8 Refer NSW DIGS Report R00022366, Exploration Report, Mineral Hill-Bobadah area. 9 Refer to NSW DIGS Open file reports R0009421, RE0003757, R00024525 and R00024537. 12 Talisman will drill test both chargeable anomalies and the conductive anomaly to determine the potential source of each. Further ground geophysics will be conducted across the prospect to acquire magnetic and gravity data to aid drill-hole targeting. Drilling is expected to commence in Q3 2023. Acquisition – Mabel Creek IOCG Project, South Australia During the March 2023 Quarter, Talisman entered into a Sale and Purchase Agreement (SPA) with First Au Limited (ASX: FAU) for the purchase of the Mabel Creek IOCG Project in the Gawler Craton of South Australia10. Under the SPA, Talisman has acquired a 100% interest in Exploration Licence EL6619, EL6620 and EL6627, covering a combined contiguous area of 1,048km2 in the under-explored northern Gawler Craton (Figure 8). Figure 8: Location map of Mabel Creek Project, South Australia. The Mabel Creek Project is located 130km to the north-west of the Prominent Hill Mine operated by BHP (ASX: BHP) and 40km west of Coober Pedy, making this a straightforward area to explore using existing infrastructure at Coober Pedy as a base. The project area was initially identified as part of the South Australian Government’s “Gawler Challenge” in 2020 and was identified by both the winner and runner-up of the competition as one of the most significantly prospective yet under-explored areas in South Australia for IOCG and Gawler Craton-style gold mineralisation. No on-ground exploration activities have been undertaken on the area since 2014, with only desktop studies undertaken by FAU since the Mabel Creek Project tenements were granted in mid-2021. The Project tenements span a major deep-seated, east-west trending fault system which is interpreted to host multiple intrusive bodies, including the Hiltaba Granite Suite, which is instrumental in the genesis of mineralisation at Olympic Dam (Figure 9). Demagnetised areas evident on recently acquired aeromagnetic data from the Geological Survey of South Australia suggest the presence of extensive alteration associated with the fault system, indicating that it has been a fluid conduit potentially hosting mineralisation. Post-mineral cover is relatively shallow across the Mabel Creek Project compared to other areas of the Gawler Craton, with the cover sequence varying from 30m to 150m. This is expected to make exploration using geophysics and drill testing far more cost-effective than most Gawler Craton exploration. 10 Refer Talisman ASX announcement dated 30 January 2023 for full details. 13 Figure 9: Talisman’s Mabel Creek Project Area, SA Major Mineral Projects and nearby major mining company mineral licences. The Project is surrounded by exploration licences held by other major mineral companies, including recent tenements granted to FMG and Rio Tinto Exploration, as well as the exploration ground held by Oz Minerals (now BHP Group) and their existing Tier-1 mining and development projects (Figure 9). The regional presence of these major mining companies highlights the exploration opportunity for additional significant copper-gold discoveries in the Gawler Craton. Copper-gold bearing IOCG deposits and recent exploration discoveries by major mining houses are located along an arcuate “Prospective IOCG Corridor”. Talisman’s Mabel Creek Project is located centrally within an underexplored area of this corridor, making it highly prospective for a new IOCG discovery. 14 Competent Persons’ Statement Information in this report that relates to Exploration Results and Exploration Targets is based on information completed by Mr Alex Mangl, who is a member of the Australasian Institute of Geoscientists. Mr Mangl is a fulltime employee of Talisman Mining Limited and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mangl consents to the inclusion in this report of the matters based on information in the form and context in which it appears. No new information that is considered material is included in this document. All information relating to exploration results has been previously released to the market and is appropriately referenced in this document. JORC tables are not considered necessary to accompany this document. Forward-Looking Statements This report may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Talisman Mining Limited’s current expectations, estimates and assumptions about the industry in which Talisman Mining Limited operates, and beliefs and assumptions regarding Talisman Mining Limited’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of Talisman Mining Limited. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward-looking statements in this report speak only at the date of issue of this report. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Limited does not undertake any obligation to update or revise any information or any of the forward looking statements in this report or any changes in events, conditions or circumstances on which any such forward looking statement is based. TENEMENT SCHEDULE As at date of report Project / Tenement Location and Blocks (Area) Tenement Status Talisman Equity (%) Expiry Date CENTRAL LACHLAN PROJECT New South Wales EL8615 (726km2) Granted 100% 07-07-23 EL8659 (373km2) Granted 100% 18-10-23 EL8677 2 (193km ) Granted 100% 08-12-23 EL8414 (174km2) Granted 89% 02-12-24 EL8547 (205km2) Granted 100% 03-04-28 EL8571 (258km2) Granted 100% 23-05-25 EL8658 2 (256km ) Granted 100% 13-10-22 EL8680 (20km2) Granted 100% 08-12-22 EL8719 2 (191km ) Granted 100% 27-03-24 EL9298 (440km2) Granted 100% 30-09-27 EL9299 (199km2) Granted 100% 30-09-27 EL9302 2 (108km ) Granted 100% 13-10-27 EL9306 (327km2) Granted 100% 30-09-27 EL9315 (103km2) Granted 100% 27-10-27 EL9379 (878km2) Granted 100% 28-03-28 15 EL9462 (6km ) Granted 100% 14-09-28 EL9585 (990 km2) Granted 100% 19-07-25 ELVIS PROJECT New South Wales EL8977 (463km2) Granted 2 100% 11-05-23 EL9395 (75km ) Granted 100% 21-04-25 EL9396 (229km2) Granted 100% 21-04-25 2 Joint Venture Partner N/A Peel Mining Ltd N/A N/A Project / Tenement Location and Blocks (Area) Tenement Status Talisman Equity (%) Expiry Date Joint Venture Partner N/A CENTRAL LACHLAN PROJECT New South Wales HILLSTON PROJECT New South Wales EL8907 (1,043km2) Granted 100% 31-10-22 EL9394 (399km2) Granted 100% 21-04-28 DANDALOO PROJECT New South Wales EL9324 (474km2) Granted 100% 12-11-27 N/A LUCKNOW PROJECT New South Wales EL6455 (29km2) Granted 51% 10-08-26 Lucknow Gold Ltd OTHER New South Wales EL8451 MABEL CREEK PROJECT EL6619 (276km2) Granted 89% 16-07-25 N/A (519 km2) Granted 100% 18-07-27 EL6620 2 (319 km ) Granted 100% 18-07-27 EL6627 (210 km2) Granted 100% 13-08-27 16 South Australia N/A OPERATING AND FINANCIAL RISK The Group’s activities have inherent risk and the Board is unable to provide certainly of the expected results of activities, or that any or all of the activities will be achieved. Material business risks that could influence the Group’s future activities and prospects and how the Group manages these risks, are detailed below Operational risks The Company may be affected by various operational factors. In the event that any of these potential risks eventuate, the Company’s operational and financial performance may be adversely affected. No assurances can be given that the Company will achieve commercial viability through the successful exploration and/or mining of its tenement interests. Until the Company is able to realise value from its projects, it is likely to incur ongoing operating losses. The operations of the Company may be affected by various factors, including failure to locate or identify mineral deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties encountered in mining, insufficient or unreliable infrastructure such as power, water and transport, difficulties in commissioning and operating plant and equipment, unanticipated metallurgical problems which may affect extraction costs, adverse weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment. The tenements are at various stages of exploration, and potential investors should understand that mineral exploration and development are speculative and high-risk undertakings that may be impeded by circumstances and factors beyond the control of the Company. There can be no assurance that exploration of the Tenements, or any other exploration properties that may be acquired in the future, will result in the discovery of an economic mineral resource. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. There is no assurance that exploration or project studies by the Company will result in the definition of an economically viable mineral deposit or that the exploration tonnage estimates, and conceptual project developments discussed in this Prospectus are able to be achieved. In the event the Company successfully delineates economic deposits on any Tenement, it will need to apply for a mining