Slide 1: Emerging Copper-Gold Producer – Investor Presentation March 2018
For personal use only Emerging Copper-Gold Producer – Actively Exploring in Australia’s Premier Regions Investor Presentation: March 2018 Focused Australian mineral resources company Focused Australian mineral resources company
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Talisman Mining Limited. For personal use only This document contains background information about Talisman Mining Ltd current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not pur
Slide 3: Development, near-term production, and exploration in a Tier 1 jurisdiction
Talisman - development, near-term production, and exploration in a Tier 1 jurisdiction Springfield Cu-Au Joint Venture (Talisman 30%) For personal use only ♦ High grade Cu-Au mine development in world-class VMS province ♦ Outstanding high grade orebody – Monty Ore Reserve = 8.7% Cu ♦ Monty Feasibili
Slide 4: Corporate Snapshot
Corporate Snapshot Experienced and Diverse Executive Team and Board Capital Structure Shares on Issue 185.7M For personal use only Dan Madden – Managing Director ♦ +17 years experience across base and precious metals from exploration Unlisted Options 9.7M through to operations Market Capitalisation
Slide 5: Springfield JV (30% Talisman)
For personal use only Springfield JV (30% Talisman) Development of the world’s highest grade copper mine underway Focused Australian mineral resources company Page: 5
Slide 6: Springfield Cu-Au Joint Venture
Springfield Cu-Au Joint Venture (Talisman 30%, Sandfire Resources 70%) Monty provides tremendous confidence in the exceptional exploration potential of the Springfield JV For personal use only ♦ Proven world-class VMS province with two deposits <10km apart and significant untested potential for more
Slide 7: The Monty Project: High Grade and High Value
The Monty Project: High Grade and High Value A high value deposit that underpins strong forecast financial returns For personal use only ♦ Ultra high grade deposit will drive strong margins ♦ Technically sound and financially compelling underground mine ♦ Forecast operating costs in bottom third of
Slide 8: Monty Development
Monty Development Construction and mine development rapidly advancing For personal use only ♦ All regulatory approval received for Monty development and production ♦ Decline advanced to 586 metres as at 28 Feb 2018 (on budget) ♦ Development plan leverages off existing DeGrussa infrastructure 3D sche
Slide 9: Monty Development
Monty Development Construction and mine development rapidly advancing For personal use only Focused Australian mineral resources company Page: 9
Slide 10: Monty Development
Monty Development Construction and mine development rapidly advancing For personal use only Focused Australian mineral resources company Page: 10
Slide 11: Key Monty Metrics and Ore Sales Agreement
Key Monty Metrics (TLM 30% basis) and Ore Sales Agreement Low capital and low risk development pathway with outstanding forecast returns For personal use only Talisman retains full upside (and downside) exposure to variations in Monty revenue and cost estimates on: Initial ore production life Pre-pr
Slide 12: Potential Mining Inventory Upside at Monty
Potential Mining Inventory Upside at Monty Multiple opportunities exist to outperform Feasibility Study estimates For personal use only ♦ Ore Reserveii (100% basis) 920kt @ 8.7% Cu, 1.4g/t Au consists of Upper Zone and Lower Zone ♦ Current mine plan focuses only on the higher-grade and higher tonnag
Slide 13: Near Mine Upside – 8km Monty Trend
Near Mine Upside – 8km Monty Trend Untested potential for further mineralisation in Monty near mine environment For personal use only ♦ VMS geological model dictates high potential for further discoveries in field ♦ The majority of drilling to date has been shallow at depths of <150m ♦ Underground d
Slide 14: Springfield Exploration
Springfield Exploration Monty Deposit provides ‘proof of concept’ for Doolgunna VMS Camp For personal use only NORANDA VMS MINING CAMP ♦ VMS deposits can and do occur at multiple stratigraphic levels within the prospective sequence, e.g. Noranda VMS mining camp ♦ Bryah Basin VMS Camp now with three
Slide 15: Springfield Exploration: Multiple Prospective Horizons
Springfield Exploration Multiple Prospective Horizons in proven world class VMS province For personal use only ♦ Limited diamond and RC drilling by JV outside of Monty Resource ♦ ~90% of JV diamond holes drilled for resource definition purposes ♦ 16km Southern Volcanics Corridor has minimal RC holes
Slide 16: Monty Project and Springfield JV
Monty Project and Springfield JV -Monty is a low risk, high return copper project with outstanding potential upside- For personal use only -Multiple opportunities exist to outperform Feasibility Study estimates- -First production from Monty targeted for Q4 calendar 2018- -Multiple Prospective Horizo
Slide 17: NSW Lachlan Cu-Au Project
For personal use only NSW Lachlan Cu-Au Project A New Exploration Focus Focused Australian mineral resources company Page: 17
Slide 18: Lachlan Cu-Au Project
Lachlan Cu-Au Project Ramping up activities in a current Australian exploration hotspot For personal use only ♦ Low cost opportunity to move into Lachlan Fold Belt identified in late 2017/early 2018 ♦ Combination of Farm-Ins, acquisition and pegging ♦ Region is vastly mineralised with highly prospec
Slide 19: Lachlan Cu-Au Project: Boona Project area
Lachlan Cu-Au Project Boona Project area For personal use only ♦ Southern Extension of the Mineral Hill host volcanic sequence, over a strike length of ~10km 4 ♦ Numerous historical mine workings from the early 1900’s 4 4 ♦ High-grade gold/copper/lead mineralisation at surface identified in historic
Slide 20: Boona Project Area – Blind Calf Prospect
Lachlan Cu-Au Project Boona Project Area – Blind Calf Prospect For personal use only Planned Work to include: ♦ RC/ diamond drill testing of known Cu lodes to test for depth and strike extensions ♦ RC/ diamond drilling of untested 5 parallel target positions 5 ♦ Detailed geological and structural 5
Slide 21: Bobadah Project area – Peel JV
Lachlan Cu-Au Project Bobadah Project area – Peel JV For personal use only ♦ Historic exploration (1970’s) included mapping, rock chip sampling, auger sampling and an IP survey ♦ Project area straddled the highly prospective Cambelego-Mineral Hill Rift sequence ♦ Geological interpretation by TLM com
Slide 22: Bobadah Project Area - Cumbine Prospect
Lachlan Cu-Au Project Bobadah Project Area - Cumbine Prospect For personal use only ♦ Cumbine Prospect Historic Work ♦ Historic exploration included soils, rock chip sampling6, RC drilling7 and an IP survey ♦ Identification of significant gold mineralisation and an IP chargeability anomaly ♦ IP anom
Slide 23: Sinclair Nickel Project
For personal use only Sinclair Nickel Project Advanced opportunity with exploration upside in a proven nickel province Focused Australian mineral resources company Page: 23
Slide 24: Sinclair: A Low Cost, Fast Track, Development Option
Sinclair: A Low Cost, Fast Track, Development Option in the Right Scenario A regionally strategic asset with established plant and infrastructure For personal use only ♦ Located in the world-class Agnew-Wiluna Greenstone belt – 9Mt of historic nickel production ♦ 1.58Mt @ 2.44% nickel for 38,599t of
Slide 25: The Talisman Investment Case
For personal use only The Talisman Investment Case Emerging metals producer with exceptional prospectivity Focused Australian mineral resources company Page: 25
Slide 26: The Talisman Investment Case
The Talisman Investment Case Emerging metals producer with exceptional exploration prospectivity For personal use only ♦ Monty is a high-grade, high-returning copper-gold project ♦ Development underway ♦ JV with a proven development and operating partner ♦ Low risk, low capital driven by ore sales a
Slide 27: Discovering and Developing Opportunities in Base and Precious Metals
Focused Australian mineral resources company For personal use only Discovering and Developing Opportunities in Base and Precious Metals Investor Presentation: March 2018 Focused Australian mineral resources company Page: 27
Slide 28: Appendix 1: Competent Persons’ Statements
Appendix 1: Competent Persons’ Statements Note i: Mineral Resources For personal use only Information in this presentation that relates to the Monty JORC Mineral Resource estimate is information previously published by Sandfire Resources NL (“Sandfire”) and is available on the Sandfire and ASX websi
Slide 29: Appendix 1: Competent Persons’ Statements
Appendix 1: Competent Persons’ Statements Exploration Results and Exploration Targets For personal use only Information in this presentation that relates to Exploration Results and Exploration Targets as defined under the 2012 Edition of the “Australian Code for Reporting of Mineral Resources and Or
Slide 30: Appendix: Additional Monty Feasibility Study Detail
For personal use only Appendix 2 Additional Monty Feasibility Study Detail Focused Australian mineral resources company Page: 30
Slide 31: Key Agreements With Sandfire
Key Agreements With Sandfire Logical and low risk pathway with economic benefits shared between JV partners For personal use only Mining Joint Venture Agreement (MJVA) Ore Sale Agreement (OSA) ♦ Establishes the rights and obligations of the Springfield JV ♦ Applies to Monty ore (and near-Monty exten
Slide 32: Talisman’s Underlying Operating and Economic Interest in Monty
Talisman’s Underlying Operating and Economic Interest in Monty Springfield JV exposure Talisman economics For personal use only OPEX variables (ex royalties): ♦ Underground mining costs Monty Feasibility Study OPEX estimates (TLM 30% basis) Underground ♦ Ore haulage costs to DeGrussa ♦ 239kt mined o
Slide 33: Key Agreements Secured
Key Agreements Secured OSA reduces risk with full exposure to revenue and cost upside For personal use only ♦ Ore Sales Agreement (OSA) provides a low capital, low risk and high return development route for Talisman: Retains optionality in relation to any future discoveries on the Springfield JV t
Slide 34: The OSA Maximises Simplicity and Minimises Dispute Risk
The OSA Maximises Simplicity and Minimises Dispute Risk Monty ore ownership and risks transfer at this point For personal use only Mined DeGrussa plant Monty ore Dedicated weighbridge at Springfield JV mining/ore haulage risk Sandfire processing/downstream risk processing and (TLM 30% DeGrussa ROM p
Slide 35: A Highly Competitive Ore Treatment Fee (OTF)
A Highly Competitive Ore Treatment Fee (OTF) ♦ Ore Treatment Fee (OTF) of approx. A$211/t ore For personal use only ♦ Recognises all downstream costs post ore sale: Ore processing and associated business services/G&A Concentrate transport and refining costs (~55% of OTF) A dedicated plant usag
Slide 36: Monty Feasibility Study Operating and Financial Outcomes (30% Basis)
Monty Feasibility Study Operating and Financial Outcomes (30% Basis) A technically sound and highly economic underground project For personal use only All costs borne by the Springfield Joint Venture under the OSA are incorporated in the Monty financial analysis on a 100% basis. As such, Talisman’s
Slide 37: Monty Feasibility Study Capital and Operating Cost Detail
Monty Feasibility Study Capital and Operating Cost Detail Capital cost composition (TLM 30% basis) Operating cost parameters (TLM 30% basis) For personal use only Capital item A$M Operating item A$M A$/t ore Surface infrastructure 9.9 Underground mining 28.8 120.5 Underground mine development 9.5 Or
Slide 38: Monty Mineral Resources
Monty Mineral Resourcesi For personal use only Mineral Resource Mineralisation Style Tonnes (t) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Category Indicated 754,000 12.0 2.1 91,000 51,000 Massive Sulphides Inferred 9,000 20.7 2.7 2,000 1,000 Total 763,000 12.1 2.1 92,000 52,000
Slide 39: Monty Ore Reserves and Mine Plan
Monty Ore Reservesii and Mine Plan For personal use only Ore Reserve estimate and Mine Plan on 100% Basis as at 31 March 2017 Reserve Category Tonnes (t) Copper (%) Gold (g/t) Contained Copper (t) Contained Gold (oz) Proved - - - - - Probable 920,000 8.7 1.4 80,000 42,000 Total 920,000 8.7 1.4 80,00