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.

On the subject of royalties, some details below on Wonmunna.

https://www.nsenergybusiness.com/projects/wonmunna-iron-ore-project/

Given reserves are 28mt and resource is 80mt with 10mt already mined (at rate of 5mtpa), then there is probably around 10 year mine life. Did some calculations and the NPV probably works out to be $50m at IO price of 90 USD/t (150 AUD)

Noticed TLM also spends more on exploration than RHI although RHI has less prospective ground.

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

16-7-2020:  Kerry Harmanis Appointed to TLM Board

Kerry Harmanis has owned 18.1% of Talisman (TLM) for a few years now, and could have got himself appointed to the board at any time, as their largest shareholder.  He was instrumental in getting a great outcome for TLM when SFR discovered Monty on TLM's land, and the sale of those tenements gave TLM shareholders (which included me at that time) a nice capital return as well as a generous special dividend. 

Kerry was also the guy who grew Jubilee Mines up from nothing to a $3.1 Billion company when he sold it to Xstrata in 2008.  I was a shareholder of Jubilee Mines at the time, and I had convinced my father-in-law to buy some shares also because they had been paying such good dividends and were very likely to get taken out by someone much bigger, which of course they were, by Xstrata, at the top of the market (nickel was absolutely flying at the time).  It was my father-in-law's best returning investment ever - he received 7 times his original investment.  He has now passed on, and I've had some better investments since, but I remember Kerry H well, and have a lot of respect for him.  In short, it's a positive that he's finally decided to take on a much more active role in TLM (as the new Board Chairman).

Further Reading:  Kerry Harmanis: Miner, meditator and mandolin player