Announcement PDF ASX Media Release – 4 October 2017 Springfield Exploration Update Drill testing of new target areas during December Quarter Highlights  Springfield Joint Venture exploration budget approved for the three-month period to the end of December 2017.  Budgeted exploration to include: o Reverse circulation (RC) drilling to further test Monty North East (Monty NE) air-core anomaly of 5.0m at 4.11% Cu 1 (including test of recently identified IP anomaly); o Dan Madden Managing Director RC drilling to test Monty East interpreted host position; o RC drilling of selected geochemical anomalies in the Southern Volcanics; and Alan Senior Non-Executive Director o Air-core drilling to test Homer South host position. Board of Directors Jeremy Kirkwood Non-Executive Chairman  Brian Dawes Non-Executive Director Karen Gadsby Non-Executive Director ------------------------------- Work completed under Springfield Joint Venture exploration budget for the three-month period to the end of September 2017 included: o RC drilling to test the interpreted Monty host position to the west of the Mataro Fault and reinterpretation of the Mataro Fault orientation; o Assessment of recently identified exploration opportunities and interpretations including Monty NE, Monty East and Homer South Trend; o RC drilling targeting geochemical anomalies at Monty NE, Monty South and the Southern Volcanics Trend; o DHEM surveys of all RC drill holes; and o Completion of interpretation of results from the Induced Polarisation (IP) geophysical survey over the Monty deposit and Monty NE anomaly. Contact Details Telephone: +61 8 9380 4230 Email: info@talismanmining.com.au Website: www.talismanmining.com.au ______________________________ Capital Structure Shares on Issue: 185,699,879 (TLM) Options on Issue: 9,675,000 (Unlisted) 1 See ASX announcement “Springfield Copper Project Exploration Update” dated 13 September 2016 for details Talisman Mining Limited (ASX: TLM, Talisman) advises that the Springfield Joint Venture (Springfield) (Talisman 30% and Sandfire Resources NL 70% (ASX: SFR, Sandfire)), has approved a $1.2 million budget (100% basis) for the quarter ending December 2017 with work scheduled to commence in the coming weeks. This budget is separate to expenditure on the ongoing development of the Monty Copper-Gold Mine (Monty). The December quarter exploration budget focuses predominantly on testing various new geological interpretations at Monty NE, Monty East and Homer South, along with geochemical anomalies identified within the Southern Volcanics. This planned work continues from the previous quarter which was primarily focused on detailed geological reviews, and the interpretation and assessment of Induced Polarisation (IP) geophysical data collected over the Monty and Monty NE areas. Joint Venture exploration efforts continue to re-evaluate and reinterpret geological, geochemical and geophysical data on an ongoing and iterative basis to maximise discovery opportunities within the Springfield area. Springfield exploration during budget period 1 July to 30 September 2017 Work completed at Springfield over the three-month budget period ending 30 September 2017 was primarily focused on an internal data review, and evaluation of the geological interpretations provided by Talisman to the Joint Venture late in the June 2017 quarter. On-ground exploration was limited to five RC drill holes for a total of 2,096 metres as depicted in Figure 1. Monty Cu-Au Deposit Figure 1: Springfield drill collar location plan for the three-month budget period ending 30 September 2017. Reverse Circulation Drilling Drilling completed at Monty NE, Monty South and within the Southern Volcanics trend targeted bottomof-hole (BOH) lithogeochemical anomalies identified in previous air-core drilling. The three holes completed at these targets (TLRC0070, TLRC0071 and TLRC0073) did not return any significant Cu mineralisation. The two RC drill holes completed at Monty West (TLRC0069 and TLRC0072) were designed to confirm the position of the Monty host stratigraphy to the west of the Mataro Fault which is interpreted to truncate the Monty mineralisation. The host horizon was successfully intersected in both holes, confirming the interpreted position of host stratigraphy to the north of previous interpretations (Figure 2). Figure 2: Monty offset geological interpretation showing updated geological interpretation tested during the budget period. With the addition of this new geological information, Sandfire completed a reinterpretation of this area including a review of the orientation of the Mataro Fault structure. This work included detailed relogging of RC and diamond drill core in the area, including TLDD0114 which was drilled to provide a deep downhole electromagnetic (DHEM) survey platform below the existing Monty Cu-Au mineralisation. The review resulted in a significant steepening of the interpreted dip of the Mataro Fault as illustrated in Figure 3. As a consequence, the deep diamond drill hole TLDD0114 is now interpreted to intersect the host stratigraphy to the west of the Mataro Fault structure. The DHEM survey of TLDD0114 is now interpreted to have provided geophysical coverage off-hole of TLDD0114 and immediately to the west of the Mataro Fault. There were no geochemical or geophysical indicators observed in the existing RC or deep diamond drilling completed to date. Given that the purpose of the proposed third deep diamond hole in this area was designed to test the western side of the Mataro Fault and this outcome is interpreted to have been achieved by TLDD0114 (Figure 3), the third proposed deep diamond hole is suspended at this time. Figure 3: Monty deposit projected long section with diamond holes, interpreted DHEM coverage and new interpreted orientation of the Mataro Fault, showing TLDD0114 pierce point to the west of the Mataro Fault. Other Activities In addition to the recent drilling activities, other exploration was focused on the completion of a detailed review of the ground-based IP orientation survey over the Monty deposit and Monty NE air-core anomaly. The survey consisted of a limited orientation survey, comprising two lines across Monty NE for 1.8km of data, and four lines across the Monty deposit for 7.8km of data. The trial IP survey over the Monty deposit confirmed that massive sulphides at Monty are sufficiently polarisable to produce a measurable signal from surface. However, from a targeting perspective, the presence of secondary anomalies significantly reduces the reliability of subsequent targets and therefore any targets from an IP survey are likely to require additional justification for follow-up drilling. The survey of the Monty NE air-core anomaly (5m interval at 4.11% Cu in hole TLAC2694 2), returned a clear, although weak anomalous chargeable response with a corroborating low resistivity (Figure 4). The limited amount of data (two survey lines), along with the limited deeper drilling in the area makes interpretation of the geometry of the response difficult. Previous DHEM surveys in adjacent RC drill traverses approximately 200-300m away from the IP anomaly have not identified any off-hole responses in this area. In the absence of additional information, Sandfire currently interpret this anomaly to be potentially associated with an interpreted east-west striking fault structure. Importantly, the budgeted RC drill hole for the forthcoming quarter is expected to provide an appropriate test of the identified anomaly. 2 See ASX announcement “Springfield Copper Project Exploration Update” dated 13 September 2016 for full details IP/ Resistivity Anomaly TLAC2694 Figure 4: Monty NE geochem anomaly IP survey, isometric projection of 2d inverted sections with TLAC2694 (circled). Budgeted exploration for quarter ending 31 December 2017 As noted earlier, budgeted exploration for the forthcoming quarter will predominantly focus on testing newly interpreted target horizons at Monty NE, Monty East, Homer South (Figure 5 and Figure 6), and geochemical anomalies identified within the Southern Volcanics package. Figure 5: Springfield Project simplified geology plan, showing prospect locations, and the Month East & Monty NE areas recently reinterpreted by Talisman (area indicated by the white box). These recent interpretations, are based on Talisman’s assessment of geological, geochemical and geophysical data collected both recently by the Joint Venture and previously by Talisman prior to the discovery of the Monty deposit and the formation of the Springfield Joint Venture. Talisman incorporated all the relevant datasets, and generated first principles geological interpretations for areas showing quantitative geochemical anomalism. Based on this, a detailed review of all surrounding drilling data was completed to highlight subtle alteration and/or litho-facies changes that may indicate potential prospective host stratigraphic sequences. A review of the effectiveness of the existing drill testing in these areas was the final stage of the Talisman review. These new interpretations were presented to the Joint Venture late in the June 2017 quarter. Figure 6: Monty East & Monty NE – Talisman interpretation showing new geological interpretation of the prospective host horizon. Sandfire completed a detailed review of these new proposed exploration opportunities during the September 2017 quarter. RC drill testing of Monty NE, Monty East and the Southern Volcanics, and an infill air-core program over Homer South, are planned as part of the forthcoming December 2017 quarter budget activities. Drilling at Homer South is aimed at infilling in an area with only wide spaced historical vertical RAB drill coverage (Figure 7). A complete geological review and reinterpretation based on detailed gravity data is currently underway, with air-core drilling information to be integrated into this new geological interpretation as it becomes available. A target generation process will follow once the air-core drilling is complete. Proposed area of Air-core drilling Figure 7: Homer Prospect, showing updated SFR Geological Interpretation, with the new target horizon and area of air-core drilling. Talisman is encouraged by the proposed on-ground exploration activities for the December 2017 quarter, and will continue to work together with Sandfire to ensure that maximum value is extracted from the available data. Talisman expects more work to follow-on as the Joint Venture continues to build its geological understanding of this highly prospective, complex project area. ENDS For further information, please contact: Dan Madden – Managing Director on +61 8 9380 4230 For media inquiries, please contact: Michael Vaughan - Fivemark on +61 422 602 720 About Talisman Mining: Talisman Mining Limited (ASX:TLM, Talisman) is an Australian mineral development and exploration company. The Company’s aim is to maximise shareholder value through exploration, discovery and development of complementary opportunities in base and precious metals. Talisman holds a 30% interest in the Springfield Joint Venture (Springfield) with Sandfire Resources NL (70% and JV Manager). Springfield is located in a proven VMS province in Western Australia’s Bryah Basin and contains multiple prospective corridors and active exploration activities. Springfield hosts the high-grade Monty coppergold deposit which is located 10 kilometres from Sandfire’s DeGrussa operations. Monty is one of the highestgrade copper-gold discoveries made globally in recent decades and a Feasibility Study on its development was completed in March 2017. The Feasibility Study highlighted the strong technical and financial viability of Monty. Talisman also holds 100% of the Sinclair Nickel Project located in the world-class Agnew-Wiluna greenstone belt in WA’s north-eastern Goldfields. The Sinclair nickel deposit, developed and commissioned in 2008 and operated successfully before being placed on care and maintenance in August 2013, produced approximately 38,500 tonnes of nickel at an average life-of-mine head grade of 2.44% nickel. Sinclair has extensive infrastructure and includes a substantial 290km2 tenement package covering more than 80km of strike in prospective ultramafic contact within a 35km radius of existing processing plant and infrastructure. Competent Person’s Statement Information in this ASX release that relates to Exploration Results and Exploration Targets is based on information completed by Mr Anthony Greenaway, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is a full time employee of Talisman Mining Ltd 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 “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Forward-Looking Statements This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on Talisman Mining Ltd.’s current expectations, estimates and assumptions about the industry in which Talisman Mining Ltd operates, and beliefs and assumptions regarding Talisman Mining Ltd.’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 Ltd. 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 announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Talisman Mining Ltd does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based. Table 1 – Drill-hole Information Summary, Springfield Cu-Au Project Details and co-ordinates of recently completed RC drill-hole collars: Grid ID Dip Azimuth East (m) North (m) RL (m) Hole Type Max Depth Hole Status MGA94_Z50 -600 125 741,920 7,170,842 591 RC 448 Complete TLRC0070 MGA94_Z50 -600 85 742,700 7,170,300 595 RC 448 Complete TLRC0071 MGA94_Z50 -600 124 745,628 7,173,975 612 RC 436 Complete MGA94_Z50 -600 153 742,826 7,171,082 593 RC 316 Complete MGA94_Z50 -600 152 733,948 7,164,000 580 RC 448 Complete Hole ID TLRC0069 TLRC0072 TLRC0073 Table 2: Drill-hole Assay Intersections for the Springfield Cu-Au Project Details of relevant intersections received by Talisman of recently completed RC drill-hole collars are provided below. Calculation of RC intersections for inclusion into this table are based on a 0.5% Cu cut-off, no more than 3m of internal dilution and a minimum composite grade of 1%Cu. Intersection length, Cu (%), Au (ppm), Ag (ppm) and Zn (%) are rounded to 1 decimal point. Hole ID Depth From Depth To Interval Cu Au Zn (m) (m) (m) (%) (ppm) (%) TLRC0069 No Significant Results TLRC0070 No Significant Results TLRC0071 No Significant Results TLRC0072 No Significant Results TLRC0073 No Significant Results Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections) Criteria Sampling techniques JORC Code explanation • • • Drilling techniques Drill sample recovery • • • • Logging • • 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 3kg 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. Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). 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. 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. Commentary • Sampling techniques employed by Sandfire on the Doolgunna Project include half core sampling of NQ2 Diamond Drill (DD) core, Reverse Circulation (RC) drilling samples collected by a cone splitter for single metre samples or sampling spear for composite samples, and air-core (AC) sample collected using spear techniques for both composite and single metre samples. • Sampling is guided by Sandfire DeGrussa protocols and QAQC procedures as per industry standard. • RC and AC sample size reduction is completed through a Boyd crusher to -4mm and pulverised via LM5 to nominal -75µm. Pulp size checks are completed. • Diamond core size reduction is through a Jaques jaw crusher to -10mm and all samples Boyd crushed to 4mm and pulverised via LM5 to nominal 90% passing 75µm using wet sieving technique. • Samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. • Fire Assay is completed by firing 40g portion of the sample with ICPMS finish. • Sandfire drilling is completed using industry standard practices. RC drilling is completed with a face sampling hammer of nominal 140mm size, AC drilling is with a blade bit and diamond drilling is completed using NQ2 size coring equipment. • All drill collars are surveyed using RTK GPS. • All core, where possible is oriented using a Reflex ACT II RD orientation tool. • Downhole surveying is undertaken using a gyroscopic survey instrument. • 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 98%. • Surface RC sampling is good with almost no wet sampling in the project area. AC drilling recovery is good with sample quality captured in the database. • Samples are routinely weighed and captured into a central secured database. • No indication of sample bias with respect to recovery has been established. • Sandfire geological logging is completed for all holes and is representative across the ore body. The lithology, alteration, and structural characteristics of drill samples 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™. Criteria JORC Code explanation • Sub-sampling techniques and sample preparation • • • • • • • • • The total length and percentage of the relevant intersections logged. 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/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. 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. Commentary • Logging is both qualitative and quantitative depending on field being logged. • All drill-holes are logged in full. • All cores are digitally photographed and stored. • Sandfire DD Core orientation is completed where possible and core is marked prior to sampling. Half core samples are produced using Almonte Core Saw. Samples are weighed and recorded. • RC samples are split using a cone or riffle splitter. A majority of RC samples are dry. On occasions that wet samples are encountered they are dried prior to splitting with a riffle splitter. • AC samples consist of 5m composite spear samples produced from 1m. Additional 1m sampling may be completed depending on the results from the 5m composites samples. • All samples are 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 75µm. • RC and AC samples are Boyd crushed to -4mm and pulverised using LM5 mill to 90% passing 75 µm. • Sample splits are weighed at a frequency of 1:20 and entered into the job results file. • 1:20 grind quality checks are completed for 90% passing 75µm criteria using wet sieving technique to ensure representativeness of sub-samples. • Sampling is carried out in accordance with Sandfire protocols as per industry best practice. • The sample size is appropriate for the VHMS and Gold mineralisation styles. • Sandfire samples 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. • No geophysical tools are used in the analysis. Criteria Verification of sampling and assaying JORC Code explanation • • • • Location of data points • • • Data spacing and distribution Orientation of data in relation to geological structure 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. 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. Commentary • Sandfire DeGrussa QAQC protocol is considered industry standard with standard reference material (SRM) submitted on regular basis with routine samples. SRMs and blanks are inserted at a minimum of 5% frequency rate. • Significant intersections have been verified by alternate Talisman personnel. • Sandfire 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. • Sandfire DeGrussa Survey team undertakes survey works under the guidelines of best industry practice. All surface drilling is accurately located using RTK-GPS. • For the Springfield project MGA94 Zone 50 grid coordinate system is used. • Topography control was established from aerial photography using series of survey control points. • Data spacing for reporting of Exploration Results. • Infill drilling at Monty is based on a nominal 30m x 40m grid. • 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. • Resource definition drill spacing and distribution of exploration results is sufficient to support Mineral Resource Estimation procedures. Refer ASX: SFR 13/04/2016 Maiden High Grade Mineral Resource for Monty VMS Deposit • • Whether sample compositing has been applied. Exploration drill spacing outside of the Monty Mineral Resource is not sufficient to estimate Mineral Resources. • No sample compositing has been applied to the exploration results. • At Springfield, no significant orientation based sampling bias is known at this time. • The drill holes may not necessarily be perpendicular to the orientation of the intersected mineralisation. • 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. Sample security • The measures taken to ensure sample security. • Appropriate security measures are taken to dispatch samples to the laboratory. Chain of custody of samples is being managed by Sandfire Resources NL. Samples are stored onsite and transported to laboratory by a licenced transport company in sealed bulker bags. The laboratory receipts 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. • No external audits or reviews of the sampling techniques and data have been completed. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status • • Sandfire Resources NL and Talisman Mining Limited have formed a Joint Venture which covers Talisman’s Doolgunna Project tenements (E52/2282, E52/2313, E52/2466, E52/2275). • Sandfire and Talisman hold a 70%:30% interest respectively in the Joint Venture, with the exception of tenement E52/2275 where interests of approximately 81%:19% respectively are held. • Both parties expenditure. • Sandfire Resources NL has been appointed as the Joint Venture Manager. • All tenements are current and in good standing. • The Talisman tenements are currently subject to a Native Title Claim by the Yungunga-Nya People (WAD6132/98). Sandfire currently has a Land Access Agreement in place with the Yungunga-Nya Native Title Claimants and have assumed management of Heritage Agreements which were executed by Talisman. These agreements allow Sandfire to carry out mining and exploration activities on their traditional land. • 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. are contributing proportionately to Exploration done by other parties • Acknowled