After MinRes annual report yesterday there was a clarification from TLM about the expected duration of the royalty from Wonmunna iron ore of approximately 4 years. Gives them time to carry out more funded exploration.

In its 2024 Annual Report lodged yesterday, Mineral Resources stated that “ongoing assessment of the Wonmunna Operation has identified that economic viability will become limited in the short to medium term”, and that preparations were being made to transition production from Wonmunna to its Lamb Creek iron ore deposit.

Mineral Resources stated that primary approvals for the Lamb Creek deposit are expected in the first half of FY25 with production forecast to commence in FY26. Based on the FY25 production guidance provided by Mineral Resources for its Pilbara Hub of 9.0-10.0Mt (wet), Talisman believes the timeframe outlined in the Annual Report for transitioning from Wonmunna to Lamb Creek is broadly consistent with the anticipated production position of approximately 4 years for Wonmunna. The Wonmunna royalty has generated receipts of $25.6 million to date, including $8.6 million in FY24 and $2.5 million for the September 2024 Quarter. 

After lengthy rain delays TLM resumes drilling at the best of the current prospects, Durnings:

Drilling underway to test for extensions of previous high-grade copper-gold and base metal results

New program of Reverse Circulation (RC) and diamond drilling commences at Durnings.

Previous high-grade drill results and step-out geophysical anomalies to be tested.

Exploration work approval received from NSW Department of Primary Industries and Regional Development.

RC pre-collars with Diamond drilling program comprises up to ten holes to test zones of high-grade copper-gold mineralisation previously intersected at Durnings South and Durnings North.

Five holes will also test down-hole EM anomalies associated with the high-grade base metal intersections.

The Durnings Prospect lies along strike from Kingston Resources’ Mineral Hill Operation along the eastern side of the highly prospective Cobar Basin.

This ties in with an article in The Australian which suggested that TLM could be a merger or takeover target for Kingston

"Kingston could merge with the $43M Talisman Mining...its Durnings prospect, just 15Km from Mineral Hill and its smaller Blind Calf copper discovery 2Km away."

Detailed investor presentation for Diggers and Dealers as well as an announcement of an acquisition. Delays with further Durnings exploration due to rain.

Talisman acquires the Yarindury Porphyry Cu-Au Project in NSW.

Maiden drilling program to commence in the September quarter to test large geophysical anomalies.

An initial diamond drilling program is scheduled to commence once NSW government approvals have been secured. Importantly, this initial phase of drilling will provide us with detailed geological context as to the potential style and scale of copper-gold mineralisation associated with the large geophysical anomaly.

“The Yarindury project is complementary to the advanced exploration at our Durnings Project. The recent exciting exploration results at Durnings will be followed up as quickly as possible once access to the project is re-established following recent heavy rainfall in late June.”

More outflow this quarter with the ramp up of exploration costs and a reduced royalty income. One of the attractions of TLM has always been the potential returns of a junior explorer without being tapped for CRs. It will be interesting to see if management control costs to avoid raising or continue to spend on exploration. Some royalty was delayed and will come in next quarter.

Cash Balance on 30 June 2024, Talisman had $4.932 million cash available for its operating and investing activities. Expenditure on mining exploration activities during the June 2024 quarter totalled $3.085 million and relates to activities undertaken on the Company’s Lachlan Copper-Gold and Mabel Creek Projects.

Expenditure during the quarter included RC drilling, diamond drilling, assaying, geophysical surveying, geological mapping activities, tenement management, and exploration activity planning.

During the quarter, Talisman received $1.527 million in royalty payments from iron ore sales that occurred between 1 March 2024 and 30 April 2024 (only 2 months). The royalty payment from iron ore sales that occurred in May 2024, of $0.802 million were received on 1 July 2024.

The iron ore royalty receipts for the current quarter reflects the impact of moderating global iron ore pricing on both WIOM sales made during the quarter and final price adjustments on iron ore sales made in the previous quarter, in accordance with Wonmunna sales contracts.

TLM released its latest drill results showing some interesting intersections but nothing major. Interesting discussion @16 mins of the COBAR region of deposits on Money of Mine fits in with these results where Ahmad Saleem describes the region as generally pockets of high grade but lacking the commercial viability of a mine. @19.35 he discusses a simple formula for gold of grams per tonne times length of intersection and anything in the 75+ range as valuable and less than 50 not important. So of the three reported intercepts one at 50 with one metre at 44g/tonne, one at 14, and one at 113, a mixed bag.

SP fell back from the recent peaks after a "nearology" boost from AGC

The positive spin from the company

Confirmation of a second high-grade mineralised zone in the Northern Durnings area further reinforces a major greenfields base and precious metals discovery at Durnings.

Structural analysis of the core shows that these holes were drilled in sub-optimal directions to intersect the high-grade zones and the modeled DHEM (Down-hole Electro Magnetics) survey. 

“The Cobar Basin has been delivering significant exploration news at a number of locations lately and Talisman is pleased to be at the forefront of a new wave of discoveries for the region with our emerging discoveries at Durnings and Rip N Tear. The next few months should be an exciting time for our shareholders.”

Held in RL

A good presentation overview of the current TLM situation. 12 assay results and downhole magnetic surveys due in the coming weeks.

Presentation has the feel of a CR about it. In the interview with MD he stated no plans for M&A but maybe looking to bring more institutional investors on board?

Drilling assays getting stronger. Managing director on "The Hole Truth" podcast describing the latest results as some of the best he has seen in 30 years in the industry. More results to come. Only $153K spend last quarter after royalties and $7M in the bank.

Exceptional assay results returned from diamond hole DRRCD0019,

The results confirm two zones of strong, high-grade mineralisation:

Base Metals Zone – 25.2 metre zone containing massive, semi-massive, matrix and laminated galena-sphalerite-silver and lesser chalcopyrite-gold from 198.0m downhole.

Assays include:

7.5m at 1.5% Pb, 2.2% Zn, 23.6g/t Ag, 0.3% Cu, 0.31g/t Au from 198m to 205.5m and

7.4m at 6.7% Pb, 2.9% Zn, 137g/t Ag, 0.2% Cu, 0.24g/t Au from 218.8m to 226.2m including:

1.7m at 26.5% Pb, 7.8% Zn, 558g/t Ag, 0.7% Cu, 0.81g/t Au from 224.5m to 226.2m containing 1.1m of massive sulphide

Copper-Gold Zone – 28.3 metre zone containing massive, matrix and blebby chalcopyrite-galena-sphalerite-gold-silver from 370.5m down-hole in an extensively altered quartz-carbonate vein breccia.

Assays include:

28.3m at 4.03g/t Au, 0.9% Cu, 3.8% Pb, 0.7% Zn, and 26.5g/t Ag from 370.5m to 398.8m down-hole, including:

10.0m at 7.94g/t Au, 1.0% Cu, 9.9% Pb, 1.5% Zn and 61.3g/t Ag from 374m to 384m down-hole, including:

3.5m at 21.2g/t Au, 1.6% Cu, 11.8% Pb, 2.4% Zn and 84.7g/t Ag from 379.5m down-hole; and

7.8m at 4.11g/t Au, 1.8% Cu, 1.0% Pb, 0.6% Zn, and 16.3g/t Ag from 391m to 398.8m

“Both high-grade zones offer huge potential and represent very exciting exploration targets for the Company. In light of this, we recently initiated a program of down-hole EM surveying to search for additional off-hole conductors across the 2.0km strike length of GAIP anomalism tested to date with RC and diamond drilling. Results from the down-hole EM survey program should be available in approximately two weeks.

“Once assay results for the recently completed drilling, down-hole EM and detailed structural analysis of the diamond cores are complete, a further program of Stage 3 follow-up drilling will be planned and commence this quarter.” 

Held in RL

SP has another good run lately back up to 27c from 17c. Personally missed the buy in oportunity in SM but still hold in RL

2024 exploration program commences at Talisman’s 100%-owned Mabel Creek IOCG Project in SA, acquired by TLM in 2023, with a Ground Gravity Survey underway.

Initial 6-8 week survey program covering entire 1,048sqkm holding.

Survey covers a number of prospective magnetic anomalies in the Mabel Creek area and will be used to generate drill targets for the planned field program commencing in the second half.

First on-ground exploration work to be undertaken on this project area for 14 years.

"The neighborhood is very active with exploration programs being undertaken by Rio Tinto, FMG and Petratherm in the area.”

Kerry Harmanis dropping $260K in on market trade for 1M shares

Latest presentation

Held in RL

TLM comes out of a halt after an announcement with the wrong date to release an announcement with an incorrect name. Good job they are explorers not editors! "Significant Base Metal Discovery Confirmed at Burnings." Not sure that the announcement warranted a halt but the SP is up 30% today.

Significant Base Metal Discovery Confirmed at Durnings with Massive Sulphides in Diamond Drilling Follow-up RC and diamond drilling intersects significant zones of lead-zinc-copper mineralisation.

Talisman’s Managing Director, Andrew Munckton, said: “The follow-up drill program at Durnings has intersected some impressive visual mineralised intersections for Talisman based on logging by our experienced field team, confirming that this is a potentially very significant base metal discovery and a potential game-changer for the Company. 

“The diamond drill rig will confirm the geological interpretation and target the Deeper zone on these strike extension lines in the next few weeks. “Our geology team is looking forward to integrating the new knowledge derived from this RC and diamond drilling program with our full assay dataset from Durnings to provide a more detailed and accurate picture of the orientation and style of lead-zinc-silver-copper-gold sulphide mineralisation and to fully test this extensive structural corridor and emerging mineralised system in the coming weeks.”

Sold out in SM but held in RL

TLM issued a speeding ticket today. No news up 27%. Volume well over double usual buy in days. Sold out today in SM but still hold in RL(15%).

Quite a lot of discussion about copper shortages at the moment. TLM has 1000km2 at Mabel Creek in SA Gawler Craton with potential for copper- gold discoveries. No debt and funded from the iron ore royalty in the Pilbara which is significant at the current iron ore price.

Good drill results from TLM. Could be developing into a decent resource. Updated presentation

“These initial results from Durnings are very encouraging, both in terms of the high-grade gold intersection returned and the pervasive combinations of base and precious metals returned in the step-out holes. In combination with the results from the Kaolin Shaft drilling just to the north-west, these results highlight that this whole area is highly mineralized. “We need to do more interpretative work to understand if there is a larger mineralising system at play here and what the key to unlocking it is to generate an exciting new discovery. “The team is already planning future work programs in this area as a priority while continuing to work flat-out on the current drilling programs, testing multiple geophysics targets throughout our Central Lachlan Project.”

High-Grade Gold With Significant Base Metals Intersected at Durnings Prospect, NSW High-grade assays of up to 17.5g/t Au, 1.4% Cu and 12.8g/t Ag reinforce the polymetallic potential of the area and extend the known mineralisation at depth

Modern exploration techniques yielding further prospects.

Compelling New Drill Targets Identified From Geophysical Surveys at the Lachlan Project, NSW

Priority chargeable and conductive anomalies identified in areas known to host base and precious metal mineralisation; Drilling to be expedited in Q2/Q3 2023

The definition of new drill-ready anomalies reinforces Talisman’s exploration strategy of systematically narrowing the exploration search space to identify robust exploration targets.

“Our concurrent work streams of drilling, geophysics and geochemistry are starting to bear fruit in NSW. The identification of the priority Stella and Rip and Tear geophysical targets represents an excellent outcome from our systematic and methodical greenfields exploration approach. "

Another quarter where TLM royalties cover exploration costs. Some drilling results to come in the current quarter and the auger drilling program starts with initial on site results coming in over the next half. Still some delays due to lab delays and weather. Royalties will be lower going forward as the iron ore price is predicted to be decreasing over the near term.

Drilling commenced on 12 geophysical targets with mixed results. Some with no mineralisation to explain the anomaly others such as the Kaolin Shaft and Durnings prospects, visual base metal sulphides were encountered in all seven drill-holes. Talisman is awaiting assay return for these drill-holes at present, which are expected in May.

Analytical results for geochemical assays experienced extended turnaround times in 2022, with expected six-week assay returns being delayed by 3-4 months.

The auger drilling program is designed to test basement geochemistry across targets generated by regional geophysical surveys and is estimated to take 4-5 months to complete, depending on final hole depths across each program, with analysed samples providing a pipeline of ongoing geochemical anomalies for further work.

To allow for rapid target generation based on auger drilling programs, Talisman has partnered with Portable PPB Pty Ltd, an Australian private company holding the exclusive global licence to the CSIRO developed low-level gold by pXRF technology known as detectORE.

The technology is a fast, simple and robust process to enable the leaching, concentrating and detection of gold from a bulk sample at parts per billion levels with high precision using conventional hand-held XRF instruments, this will allow Talisman to return a fast (less than 12-hour turnaround) on-site preliminary gold and multi-element geochemistry result to guide real-time exploration, while still allowing follow-up geochemical analysis via commercial assay laboratories.

Held in SM and RL

TLM picks up SA copper / gold tenements for $200K +$100K shares. Seems like a good deal?

“Such a low-cost acquisition, with no trailing royalty obligation – strategically located near existing world-class mineral deposits – is a great outcome for Talisman."

Talisman Strengthens Copper-Gold Portfolio With Acquisition of South Australian IOCG Project Acquisition of under-explored Gawler Craton project provides Tier-1 copper-gold discovery potential in a highly prospective district.

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 and the BHPGroup and their existing Tier-1 mining and development projects. The regional presence of these significant mining companies highlights the exploration opportunity for additional significant copper-gold discoveries in the Gawler Craton.

Ongoing weather delays for exploration but drilling planned to start this month. Small cash inflow. Lower production and lower prices reducing royalties. SP has recovered a bit from its lows.

Over 9,000m of Reverse Circulation and 600m of diamond drilling planned, this overall program is expected to be the largest single drilling program to be undertaken by Talisman on the Central Lachlan Project. Talisman has submitted and received approval for the majority of this program with remaining approvals anticipated to be received early in the first quarter of calendar 2023.

Quarterly

Quarterly activities adding another $550+k to cash from royalties of $2M covering exploration costs and despite weather delays continuing to develop drilling of identified prospects. As at 30 September 2022, Talisman had $9.5 million cash available for its operating and investing activities. MC $26M.

“Talisman has experienced significant delays to its drilling schedule as a direct result of excessive rainfall in the Central West region of NSW during much of this year.

Heavy flooding is currently being experienced throughout the region as a result of continued rainfall on already saturated ground. Operational staff are continuing to plan and schedule work to maximise opportunities for on-ground activity.”

“The reduction in iron ore royalty receipts from the previous quarter reflects a softening in the global iron ore pricing on both WIOM sales made during the quarter and unfavourable final price adjustments on iron ore sales made in the previous quarter, in accordance with Wonmunna sales contracts.

Since the commencement of iron ore production at the WIOM in March 2021, total royalty payments of $9.1 million have been received by Talisman as at the date of this announcement.”

TLM travelling nicely. Exploration costs covered by royalties and $734K FCF +ve this Q roughly $1M cash burn in 12 months. Royalties will decrease following the fall in Iron ore price.

Royalty cash receipts from the Wonmunna Iron Ore Project of $2.33 million received for the quarter with a further $0.74 million received subsequent to quarter-end2.

Company advises its exploration and evaluation expenditure during the June 2022 quarter totalled $1,294,000.

Ongoing review of metalliferous mineral growth opportunities throughout Australia.

Talisman remains well-funded with cash on hand at 30 June of $8.9 million.

Promising results from TLM's aerial surveys in NSW. Delays continue due to weather events

New targets defined by first-mover geophysical surveys, supplemented by encouraging assay results from recent drilling

Processing and interpretation of the landmark FALCON airborne gravity gradiometry (AGG) survey now completed.

Processing and interpretation of the airborne electro-magnetic (AEM) survey in progress, with preliminary interpretation completed.

Three high-priority AEM and 10 high-priority AGG targets defined to date, further targets expected to be identified in the coming weeks .

Assays returned for drill programs at Carpina North outline wide intervals of gold mineralisation, confirming the gold-in-soils target. Assays include 40m @ 0.51g/t Au from 24m down-hole in hole CNRC0012.

Complete assays returned for the RC drill program at Kaolin Shaft confirm presence of polymetallic base & precious metal mineralisation, including 2m @ 1.42 g/t Au and 2.5g/t Ag from 16m down-hole, 2m @ 0.67% Pb, 2.28% Zn and 5.1g/t Ag from 92m down-hole and 4m @ 0.50% Pb, 1.41% Zn and 2.5g/t Ag from 106m down-hole in KSRC0012.

Further ground-based work underway at both targets including preparations for a major new drilling campaign, scheduled to commence this quarter (weather and access permitting). 

Initial testing of the targets will begin in the latter half of this year as part of a major new program of drilling scheduled to commence this quarter, weather and access permitting. This follows delays to the Company’s drilling schedule due to the very high levels of rainfall which have been experienced across Australia’s Eastern Seaboard this year.

Good royalties from Iron ore but higher spending means a cash outflow. Delays with assays, aerial surveys and drilling due to demand, weather and COVID. Results to flow through in June and September quarters.

Royalty cash receipts from the Wonmunna Iron Ore Project of $1.24 million received for the quarter with a further $0.76 million received subsequent to quarter-end

Exploration and evaluation expenditure during the March 2022 quarter totalled $2,785,000.

Net outflow of 1.58M for 9 months.

Talisman remains well-funded with cash on hand at 31 March of $8.2 million. 

A total of 2,545 samples were submitted to ALS Global’s laboratory in Orange NSW for analysis during the quarter with assay results anticipated during the June 2022 quarter. Due to current high activity levels throughout the exploration and mining sector, assay returns are significantly delayed from normal laboratory turnaround times, presently taking around ten to twelve weeks from submission to assay return.

A parallel Airborne Electro-Magnetic (AEM) survey aiming to identify bedrock conductors associated with mineralisation completion of the survey has been delayed and is now expected in late April 20221 . Following delivery of final data by UTSGeo and processing and interpretation by SGC, final products are now expected to be available to Talisman in the September 2022 quarter, however Talisman will have access to high priority preliminary data prior to delivery of final products.

Drilling commenced at the Babinda Copper Prospect subsequent to quarter end with a total of five drill-holes planned1 . Drilling progress has been interrupted by a number of substantial rainfall events and significant groundwater inflows, impacting the ability to complete holes to planned depths to test beneath historical workings. Additionally, the two reconnaissance RC holes planned on the conceptual base metals target in the north-west of the tenement1 are currently unable to be accessed due to significant rainfall causing the area to be impassable to heavy vehicles. Whilst initial drilling has intersected disseminated copper sulphides through a structurally complex series of lithologies, drill testing of the Babinda Copper Prospect remains incomplete and will be replanned when access conditions are suitable and undertaken with appropriate equipment to manage high water inflows.

Seems a low cost addition to the TLM leases. Hopefully they will find more anomalies once the hail damaged helicopter allows the planned surveys.

Talisman Expands Prospective Footprint in NSW Cobar Superbasin with Strategic Acquisition $10k with buyback or royalty options for Rio Tinto

Expansion of Lachlan Fold Belt tenure through acquisition of highly prospective Monia Gap tenement from Rio Tinto Exploration

Completion expected to occur by the end of June 2022.

EL8907, which covers an area of 1,043km2, is considered highly prospective for copper-gold mineralisation and encompasses the intersection of several regional-scale structural lineaments. The western areas of the Tenement host historic workings and prospects that have seen little to no modern exploration but have been worked previously for quartz-vein hosted gold, possibly indicative of the surficial expression of a concealed epithermal gold system.

Further the central area of the tenement has a significant bullseye magnetic anomaly which cannot be explained by the regional geology and is offset oblique to the mapped strike of geological units in the area, making it likely that this anomaly is associated with a fault or shear not previously identified 

Following acquisition of the Tenement, Talisman plans to commence negotiations with land-holders for access for exploration and commence initial low-impact mapping and geophysical surveys before drill testing any high-priority targets defined from this process.

Management Comment

Talisman CEO: “We are looking forward to completing our transaction with Rio Tinto Exploration to expand our tenure portfolio in the Cobar Superbasin, as we believe this tenure provides us with additional opportunities to make a significant mineral discovery.”

$2.7M of royalty revenue covered exploration costs ($1.2M) and gave a +FCF of $246K. $10M cash.

Royalties should increase in the future as Wonmunna Iron Ore Mine has received approval to potentially double output.

"Assessing a number of exploration stage and more advanced assets"

TLM Stockhead interview with Kerry Hermanis about a busy exploration year in copper /gold in CY22.

10M cash and royalty income from the sale of the Monty iron ore resource (this income stream will reduce with the falling iron ore price )supporting a 3M quarter of exploration in NSW including drilling, aerial electromagnetic and gravity surveying (which has not been done before in that area)..

Potentially significant upside if the 4 sets of drilling results this quarter show positive results.

SP has been on a rally in recent times but still off its 25c peaks.