Announcement
MINE: NTL: Mkopoto Project Option
04:18pm
NTL
14/02/2013 16:18
MINE
REL: 1618 HRS New Talisman Gold Mines Limited
MINE: NTL: Mkopoto Project Option
14th February 2013
ANNOUNCEMENT BY NEW TALISMAN GOLD MINES LIMITED (NTL, NTLOA or NTLO)
FOR IMMEDIATE RELEASE
New Talisman Mkopoto Project Option
- New Talisman Gold Mines Limited (NZX: NTL) acquires an option to invest in
the low-cost Mkopoto mining project;
- Prefeasibility study anticipated by June 2013, targeting first gold
production in 2014;
- Key focus for NTL remains on developing Talisman gold project (the Mpokoto
investment will be managed by NTL's subsidiary, Coromandel Gold Limited).
NTL today announced that it had negotiated an interest in a low-cost,
early-to-production African gold project called Mpokoto.
NTL itself will remain focussed on developing its Talisman gold project near
Waihi, and the investment will be managed through its subsidiary Coromandel
Gold Limited (CGL). The agreement announced today will allow CGL to pursue a
strategy that was outlined to shareholders in April 2012 of investing in
economically promising mining ventures in other locations.
The Mpokoto project at Kisenge in the Democratic Republic of Congo has been
the subject of intensive exploration work including by the mining major, Gold
Fields. US$20 million has been spent to date on the resource, which is sited
close to a national highway and in the vicinity of a number of foreign-owned
mining ventures.
Further drilling completed after the resource estimation is presently being
incorporated into the geological models and is anticipated to be reported to
the market by end April 2013. An update including full description of the
project resources and the metallurgical testwork recently completed on the
project will be provided upon completion of the transaction.
The Mkopoto project is nearing completion of a prefeasibility study to assess
the economic potential and determine the fastest route to production. This
study is expected to be completed by April 2013, with a target production
date of early 2014.
NTL's initial entry is through a loan agreement executed today with Netcom
Global Inc (Netcom), who is in the process of purchasing an 80% interest in
the project (anticipated to complete on or around 15 February 2013).
The agreement allows NTL to convert the loan into a 20% indirect interest in
the project by way of equity in Netcom with no further expenditure required.
If NTL elects not to convert the loan, it has the option of retaining a 10%
interest in the project either by way of equity in Netcom or receiving a
direct 10% interest in the project whilst still having the loan to Netcom
repaid to NTL.
If ongoing due diligence confirms the potential for an upgrade of resources
to one million ounces and NTL converts the loan, it also has the right to
acquire a further 30% interest in the project (through equity in Netcom) by
meeting progressive expenditures of up to US $1.75 million over an 18-month
period.
Timing of the outlays will be determined after completion of the
prefeasibility study. A conceptual study of the project was based around a
low-cost, low technology, heap leach processing plan that required modest
capital to quickly establish a cash flow. Early returns from an open cut gold
mine at Mpokoto could help fund a higher-grade underground development.
NTL also announced today that it had entered into an underwriting commitment
with Mr Patrick Harford, a majority shareholder of Netcom, in relation to a
potential private placement of 25m NTL shares at the greater of A$0.09 per
share or a 10% discount of the volume weighted average market price reported
on the NZX Main Board Equity Securities Market for NTL ordinary shares for
the 5 trading days preceding the date of subscription.
NTL executive director Mr Matthew Hill said: "This opportunity was brought to
us by serious partners that are highly experienced in mining, and Africa in
particular. We have the opportunity to develop a diversified gold project in
advanced stages of development for NTL's specialist vehicle Coromandel Gold
Limited. Given Mkopoto's significant upside potential, its experienced local
management team and accelerated plan for development, this provides a low
risk route to gold production. NTL now has two projects in similar stages of
development at Karangahake and Kisenge."
For more information on NTL go to www.newtalisman.co.nz
Shareholder enquiries: Matthew G Hill Executive Director +64 27 5557737
For more information on the Kisenge Gold Project go to
http://www.casamining.com/pr-kisenge-drc.php
_____________________________________________________________________________
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About New Talisman Gold Mines Ltd
New Talisman Gold is a dual listed (NZSX & ASX: NTL) with 1800 shareholders
who are mainly from Australia and New Zealand. It is a leading New Zealand
minerals development and exploration company with a portfolio of high quality
mineral interests. Its gold properties near Paeroa in the Hauraki District of
New Zealand are a granted mining permit, including a JORC compliant mineral
resource within the original Talisman underground mine, and an adjacent
exploration permit along strike from the mine. The company is now advancing
its plans to develop the mine, and advance the exploration project.
Through a subsidiary company, New Talisman Gold owns 21.7% of Broken Hill
Prospecting Limited, which is planning to develop a cobalt project at
Thackaringa, about 25 kilometres south-west of Broken Hill in Australia. BPL
is listed on both the ASX and NZSX (Code: BPL).
More about New Talisman Gold at www.newtalismangold.co.nz
End CA:00232930 For:NTL Type:MINE Time:2013-02-14 16:18:42
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