Lachlan Copper-Gold Project

Talisman began to establish a position in the Lachlan Fold Belt of Central NSW in 2017 and has now amassed a dominant position in what is a highly mineralised but underexplored mining district. The region has well developed infrastructure and multiple regional processing facilities with reported production and established Ore Reserves of more than 20 million tonnes of copper, 100 million ounces of gold and 1.1 billion ounces of silver.

The Lachlan Project area covers an extensive strike extent along the Gilmore Suture within the mineral rich Cobar/Mineral Hill region. This region has produced many long-life, high-grade mineral discoveries and has the potential to host a variety of deposit types including:

  • Low sulphidation epithermal gold and base metal deposits (similar to Mineral Hill)
  • Structurally-controlled gold deposits (similar to Mt Boppy)
  • Structurally-controlled copper deposits
  • Cobar-style gold and base metal deposits
  • Skarn deposits

The landholding is a combination of 100% held ground and farm-in arrangements with other parties.

Talisman believes there is significant potential for the discovery of substantial base metals and gold mineralisation within this land package and has identified a number of areas that show evidence of base and precious metals endowment which have had very little modern systematic exploration completed to date.

Map of the Northern Central and Southern regions of the Lachlan Copper-Gold Project 

A comprehensive review of regional geology and all available datasets completed in early 2019 identified more than 40 exploration targets with potential to host significant gold or base metal mineralisation.

A systematic, staged approach is being adopted to progress and test these targets through a gated process of reconnaissance, target development and drilling.

Talisman achieved immediate success at the Lachlan Project with the drilling of its first target at the Blind Calf prospect which returned multiple intersections of high-grade copper mineralisation across mineable widths.

Activities at the project will be ramping up throughout 2019 and 2020 at targets are progressed through the drilling stage.

i. As previously announced to the ASX¹, Haverford Holdings Ltd (Haverford), a 100% owned subsidiary of Talisman, has entered into a Farm-In Agreement (Farm-in) with Bacchus Resources Pty Ltd (Bacchus) over certain Lachlan Cu-Au Project tenements.

In accordance with the terms of the Farm-in:

• Haverford can earn up to a 80% interest in the Bacchus Tenements (EL8547, EL8571, EL8638, EL8657, EL8658 and EL8680) by sole funding $2.3M of on-ground exploration expenditure over four years; and

• Should Haverford earn an interest in the Bacchus Tenements, Bacchus is entitled to receive a 20% interest in the Haverford Tenements (EL8615, EL8659 and EL8677). Should Haverford not earn an interest in the Bacchus Tenements, Bacchus may elect to take a 20% interest in the Haverford Tenements.

• Should Haverford earn into the Bacchus Tenements, a formal joint venture will be entered into which provides that Bacchus will be free carried for 10% of its joint venture interest until a decision to mine. Post a decision to mine, Bacchus can then elect whether to contribute or not, if Bacchus elects not to contribute, Haverford shall acquire Bacchus’ interest in the joint venture for 95% of fair value as agreed by the joint venture participants.

ii.  As previously announced to the ASX², Haverford has entered into a Farm-In Agreement (Farm-in) with Peel Mining Limited (ASX:PEX) over PEX’s Mt Walton (EL8414) and Michelago (EL8451) Projects (collectively the Peel Tenements). In accordance with the terms of the Farm-in, Haverford can earn up to a 75% interest in the Peel Tenements by sole funding $0.7M of on-ground exploration expenditure over five years.

iii. Talisman and its subsidiary Haverford entered into a joint venture with Bacchus in relation to EL8814. Talisman and Haverford have given notice to withdraw from this joint venture and are progressing with the transfer of their joint venture interest to Bacchus. Haverford will continue to be the registered holder of EL8814 until this process has been completed.

¹ Refer Talisman ASX announcement “Further NSW Gold and Base Metals Tenure Secured” 09 January 2018.

² Refer Talisman ASX announcement “AGM Presentation” 23 November 2017.