Announcement PDF 11 May 2015 COMPANY SNAPSHOT Sandfire Commences Diamond Drilling at Springfield Project Drilling planned at 2 locations with drilling underway at Monty Board of Directors Alan Senior Non-Executive Chairman Gary Lethridge Managing Director Brian Dawes Non-Executive Director Karen Gadsby Non-Executive Director Contact Details 6 Centro Avenue Subiaco, Western Australia, 6008 Telephone: +61 8 9380 4230 Facsimile: +61 8 9382 8200 Email: info@talismanmining.com.au Website: www.talismanmining.com.au Highlights Sandfire has advised that it has commenced a new program of reconnaissance diamond drilling at Talisman’s Springfield CopperGold Project, initially at the Monty Prospect, where diamond drilling is currently underway. The hole, TLDD0002A, will test a subtle, but discrete, late-time EM target identified by a high-powered down-hole electromagnetic (DHEM) survey completed by Sandfire on historical Talisman diamond drill-hole SPD021. Historical drilling in this area by Talisman during 2011, returned narrow intersections of potentially remobilised copper, including an intersection of 0.5m @ 1.3% Cu and 1 g/t Au from 347.5m downhole in SPD021 and 0.3m @ 7.6% Cu from 502.0m down-hole in SPD020; located down dip of SPD021. Sandfire’s new hole, TLDD0002A, is underway and is planned to test the late-time EM conductor at a vertical depth of approximately 400 metres. The conductor is interpreted to be sub-parallel to SPD0021. Sandfire has also advised that, following completion of TLDD0002A, the diamond rig will be moved to undertake follow-up diamond drilling at the Homer Prospect, along strike to the north-east from TLDD0001, which was drilled by Sandfire last year to a depth of 1,099 metres. TLDD0001, which is located in the DeGrussa corridor approximately 5km along strike to the east of DeGrussa, intersected a thick sequence interpreted to be the equivalent of the DeGrussa host sequence. The drill-hole intersected approximately 37 metres of interpreted DeGrussa-C1 stratigraphy including minor trace sulphide mineralisation. Capital Structure Shares on Issue: 131,538,627 (TLM) Options on Issue: 7,250,000 (Unlisted) ASX: TLM Follow-up drilling is intended to further test this prospective sequence, where litho-geochemical analysis by Sandfire has confirmed the presence of an interpreted exhalative horizon prospective for VMS-style mineralisation. Both diamond drill-holes will also provide valuable stratigraphic and geological information, and will be used as platforms for DHEM surveys. Talisman Mining Ltd ABN 71 079 536 495 6 Centro Avenue, Subiaco, Western Australia 6008 www.talismanmining.com.au Sandfire commences diamond drilling at Springfield Overview Talisman Mining Limited (ASX: TLM – “Talisman” or “the Company”) is pleased to announce that its exploration farm-in joint venture partner, Sandfire Resources NL (ASX: SFR), has advised the commencement of a new program of reconnaissance diamond drilling at two prospects; Monty and Homer, within Talisman’s Springfield Project in Western Australia (see Figure 1). Sandfire has informed Talisman that drilling has commenced at the Monty Prospect to test a subtle off-hole Electromagnetic (EM) conductor identified from a down-hole electromagnetic (DHEM) survey completed on a historical Talisman drill-hole. Once this reconnaissance drill-hole is completed, the diamond drill rig will be moved to undertake a follow-up drill-hole along strike from the location of TLDD0001, which was drilled by Sandfire last year at the Homer Prospect, approximately 5km east of Sandfire’s DeGrussa Copper-Gold Mine. Figure 1: Plan showing interpreted geology and the approximate locations of the current/planned reconnaissance diamond drillholes at Springfield Project, and historic diamond drill-holes SPD021 and TLDD0001. This new diamond drilling programme forms part of an ongoing multi-pronged exploration effort by Sandfire as part of the $15 million exploration farm-in joint venture entered into by Talisman and Sandfire in December 2013. Sandfire commences diamond drilling at Springfield Monty Corridor: Diamond Drilling Sandfire has advised Talisman that it has commenced drilling diamond drill-hole TLDD0002A at the Monty Prospect to test an off-hole EM conductor identified via a high-powered Fluxgate DHEM survey on historical Talisman drill-hole SPD021. Coordinates and details for TLDD0002A are provided in Table 2. Sandfire re-surveyed a total of 20 historical Talisman RC and diamond drill-holes during 2014 using the latest high-powered DHEM technology. After interpreting data from these surveys, Sandfire’s geophysical consultants have identified a discrete off-hole conductor from DHEM data from Talisman’s historic diamond drill-hole SPD021. The conductor is interpreted to be sub-parallel to SPD021 at an approximate depth of 400 metres. Decay analysis shows that there is a good exponential at the late times, which may be indicative of an accumulation of massive sulphides. By way of background, Talisman notes that SPD021 was drilled by Talisman as part of a diamond drilling program conducted at the Monty Corridor during the June 2011 Quarter (see TLM ASX Announcement 29 July 2011: June 2011 Quarterly Report). The drill-hole was drilled by Talisman as a follow up to diamond hole SPD020, which intersected a narrow zone of potentially remobilised copper, including an intersection of 0.3m @ 7.6% Cu (502.0m – 502.3m)* (see TLM ASX announcement 7 June 2011: Exploration Update –Springfield Project and Table 1). SPD021, which was drilled up dip of SPD020, also intersected a narrow zone of potentially remobilised copper, including an intersection of 0.5m @ 1.3% Cu and 1.0g/t Au (347.5m – 348m)* (see TLM ASX Announcement 29 July 2011: June 2011 Quarterly Report and Table 1). It is anticipated that DHEM will be conducted following completion of the drill-hole and additionally that the drill-hole will provide useful stratigraphic information on the southern volcanics project area. * This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Homer Corridor: Follow-up of TLDD0001 During its initial phase of exploration activity at Springfield last year, Sandfire completed diamond drill-hole TLDD0001 at the Homer Prospect; approximately 5km along strike to the east of DeGrussa. The drill-hole was designed to test a modelled late-time EM conductor, as well as to gather important geological and geochemical information across the Homer Prospect. While the drill-hole and the subsequent DHEM survey were not able to resolve the cause of the original EM conductor, it did provide valuable and highly encouraging information from an exploration perspective. The drill-hole intersected a sequence (approximately 37 metres) of siliciclastic rocks with variable haematitic alteration displaying as haematitic, jasper and magnetite-rich sediments with sulphides. Sandfire commences diamond drilling at Springfield This sequence was interpreted by Sandfire to be indicative of DeGrussa / Conductor 1 style stratigraphy and included minor blebby chalcopyrite and disseminated pyrite in laminated sediments, which are potentially indicative of strong hydrothermal activity possibly associated with volcanogenic exhalative processes. (see TLM ASX Announcement 18 August 2014: Doolgunna Projects – Exploration Update and 29 October 2014: September 2014 Quarterly Activities Report). Importantly, subsequent litho-geochemical analysis of the drill core by Sandfire has confirmed that the geochemical signature of this rock package is consistent with a potential exhalative horizon which enhances the prospectivity for VMS-style mineralisation. Once drilling has been completed at Monty, Sandfire is planning to relocate the diamond drill rig to the Homer Prospect in order to drill a follow-up reconnaissance drill-hole approximately 400 metres along strike to the north-east of the location of TLDD0001. This drill-hole, TLDD0003, is designed to provide additional information on the stratigraphic package and geological horizons and controls along the DeGrussa corridor in this area, while also providing a useful platform for an additional DHEM survey to be conducted. Such a survey may assist in potentially providing a vector into possible accumulations of massive sulphide mineralisation. Co-ordinates and details for TLDD0003 are provided in Table 2. ENDS For further information, please contact: Gary Lethridge – Managing Director on +61 8 9380 4230 For media inquiries, please contact: Nicholas Read – Read Corporate on +61 419 929 046 Competent Persons’ Statement Information in this ASX release that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Graham Leaver, who is a member of the Australian Institute of Geoscientists. Mr Leaver is a full time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Leaver consents to the inclusion in this report of the matters based on information in the form and context in which it appear. Sandfire commences diamond drilling at Springfield Table 1 – Historic Talisman Monty Prospect Drilling Results, Springfield Project Hole ID Easting Northing Dip Azimuth From (m) To (m) Intercept (m) Cu (%) Au (g/t) SPD020 743603 7171666 -60 180 502.0 502.3 0.3 7.6% NSA SPD021 743598 7171437 -60 180 347.5 348 0.5 1.3% 1.0 Information in table 1 was prepared and first disclosed under JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. NSA -No significant assay Table 2 – Drill-hole Information Summary, Springfield Project Details and coordinates of the historical drill-hole SPD021, the completed drill-hole from last year, TLDD0001, and the current and upcoming drill-holes, TLDD0002A and TLDD0003, are provided below: Hole ID SPD021 Depth 552.80 Dip -60 Azimuth 180 Grid_ID MGA94_50 East 743598 North 7171437 RL 598 Lease ID E52/2282 Hole Status Complete TLDD0001 1099.1 -60 360 MGA94_50 740146 7174149 588 E52/2313 Complete TLDD0002A 500 -60 112 MGA94_50 743540 7171212 602 E52/2282 Commenced TLDD0003 600 -60 360 MGA94_50 740600 7174550 594 E52/2313 Proposed Sandfire commences diamond drilling at Springfield Appendix 1 - JORC TABLE 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Sampling methods employed by Sandfire include half-core sampling of NQ2 core from diamond drilling (DD) Sampling is guided by Sandfire DeGrussa protocols and QAQC procedures as per industry standard. DD sample size reduction is completed through a Jaques jaw crusher to -10mm and all samples Boyd crushed to -4mm and pulverised via LM2 to nominal 90% passing -75µm. Sandfire core samples are routinely sampled for SG determination. Drilling techniques Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Sandfire diamond drilling is completed by DD rig with a core size of NQ2. All surface drill collars are surveyed using RTK GPS. Holes are inclined at varying angles for optimal ore zone intersection from the drilling position. All core where possible is oriented using a Reflex ACT II RD orientation tool with stated accuracy of +/-1% in the range 0 to 88°. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Sandfire core is meter marked and orientated to check against the driller’s blocks, ensuring that all core loss is taken into account. Diamond core recovery is logged and captured into the database with weighted average core recoveries of approximately 99%. Sample quality is routinely captured in the database. Samples are routinely weighed and captured into a central secured database. No sample recovery issues have impacted on potential sample bias. Sandfire commences diamond drilling at Springfield Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Sandfire geological logging is completed for all holes and representative across the ore body. The lithology, alteration, and structural characteristics of core are logged directly to a digital format following standard procedures and using Sandfire DeGrussa geological codes. Data is imported into the central database after validation in LogChief™. Logging is both qualitative and quantitative depending on field being logged. All cores are digitally photographed and stored. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/secondhalf sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Sandfire diamond core orientation is completed where possible and all are marked prior to sampling. Half core samples are produced using Almonte Core Saw. Samples are weighed and recorded. Sandfire sample preparation at UltraTrace in Perth involves the original samples being dried at 80° for up to 24 hours and weighed. DD Samples are then crushed through Jaques crusher to nominal -10mm. Second stage crushing uses Boyd crusher to nominal -4mm. Pulverising is completed using LM5 mill to 90% passing 75%µm. Sandfire has protocols that cover auditing of sample preparation at the laboratories and the collection and assessment of data to ensure accurate steps in producing representative samples for the analytical process. Key performance indices include contamination index of 90% (that is 90% blanks pass); Crush Size index of P95-10mm; Grind Size index of P90-75µm and Check Samples returning at worse 20% precision at 95% confidence interval and bias of 5% or better. Duplicate analysis is routinely completed. The sample size is appropriate for the VHMS and Gold mineralisation styles. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Sandfire samples submitted to Ultra Trace in Perth are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. The samples are digested and refluxed with a mixture of acids including Hydrofluoric, Nitric, Hydrochloric and Perchloric acids and conducted for multi elements including Cu, Pb, Zn, Ag, As, Fe, S, Sb, Bi, Mo, Re, Mn, Co, Cd, Cr, Ni, Se, Te, Ti, Zr, V, Sn, W and Ba. The MAD Hotbox method is an extended digest method that approaches a total digest for many elements however some refractory minerals are not completely attacked. The elements S, Cu, Zn, Co, Fe, Ca, Mg, Mn, Ni, Cr, Ti, K, Na, V are determined by ICPOES, and Ag, Pb, As, Sb, Bi, Cd, Se, Te, Mo, Re, Zr, Ba, Sn, W are determined by ICPMS. Samples are analysed for Au, Pd and Pt by firing a 40g of sample with ICP AES/MS finish. Lower sample weights are employed where samples have very high S contents. This is a classical FA process and results in total separation of Au, Pt and Pd in the samples. Sandfire DeGrussa QAQC protocol is considered industry standard with standard reference material (SRM) submitted on regular basis with routine samples. Sandfire insert SRMs and blanks at a minimum of 5% frequency rate. A minimum of 2% of assays are routinely resubmitted as Check Assays and Check Samples through blind submittals to external and primary laboratories respectively. Adhoc umpire checks are completed annually. Sandfire commences diamond drilling at Springfield Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. No new significant drilling intersections are reported in this report. No twinned holes are being drilled as part of this programme. Primary data is captured on field tough book laptops using Logchief™ Software. The software has validation routines and data is then imported into a secure central database. The primary data is always kept and is never replaced by adjusted or interpreted data. Location of data points Accuracy and quality of surveys used to locate drill-holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Sandfire DeGrussa Survey team undertakes survey works under the guidelines of best industry practice. Downhole survey completed by electronic multishot systems. MGA94 Zone 50 grid coordinate system is used. Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Programme consists of: TLDD0002A which is approximately 250 metres SSW of SPD021. The drill-hole will be orientated at 112 azimuth to intersect interpreted stratigraphy at optimal orientation. TLDD0003 which is approximately 500 metres NE of TLDD0001. The drill-hole will be orientated at 360 azimuth to intersect interpreted stratigraphy at optimal orientation. No new drilling results are reported. Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Sandfire exploration holes are oriented to achieve high angles of intersection. Diamond drilling is used as required to determine structural orientations in regional programs. Sample security The measures taken to ensure sample security. All samples are prepared onsite under the supervision of Sandfire Geological staff. Sandfire samples are transported to the Perth Ultra Trace laboratory by Toll IPEC or Nexus transport companies in sealed bulka bags, or to the onsite laboratory by company personnel. The laboratories receipt received samples against the sample dispatch documents and issues a reconciliation report for every sample batch. Audits or reviews The results of any audits or reviews of sampling techniques and data. The Sandfire sampling techniques and data collection processes are of industry standard and have been subjected to multiple internal and external reviews. Sandfire commences diamond drilling at Springfield Section 2 Reporting of Exploration Results (Criteria in this section apply to all succeeding sections) Criteria JORC Code explanation Mineral tenement and land tenure status Commentary Diamond drilling by Farm-in Partner Sandfire is on tenement E52/2313 and E52/2282. These leases are part of Talisman’s 100% owned Springfield Project, 150km north-east of Meekatharra, WA. These tenements fall within the Department of Conservation-managed Doolgunna pastoral lease. Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Geology Deposit type, geological setting and style of mineralisation. All Springfield tenements are current and in good standing. Exploration work at Springfield completed prior to Talisman’s tenure included geochemical soil and rock chip sampling combined with geological mapping. Some targeted RC drilling was completed over gold and diamond targets. Talisman’s Doolgunna Project lies within the Proterozoic-aged Bryah rift basin enclosed between the Archaean Marymia Inlier to the north and the Proterozoic Yerrida basin to the south. The principal exploration targets at the Doolgunna Projects are Volcanogenic Massive Sulphide (VMS) deposits located with the Proterozoic Bryah Basin of Western Australia. Drill-hole Information o o o o o A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: easting and northing of the drill-hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill-hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Refer to Table 2 -Drill-hole information summary , Springfield Project. . Sandfire commences diamond drilling at Springfield Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. No new drilling intersections reported. Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill-hole angle is known, its nature should be reported. If it is not known and only the down-hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). No new drilling intersections reported. Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill-hole collar locations and appropriate sectional views. Appropriate maps with scale are included within the body of the accompanying document. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. The accompanying document is considered to represent a balanced report. Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Other exploration data collected is not considered as material to this document at this stage. Further data collection will be reviewed and reported when considered material. No new drilling intersections reported. Sandfire commences diamond drilling at Springfield Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Further work is contingent on the outcomes of current drilling and electromagnetic surveys.