Talisman Mining Limited · ASX:TLM
Talisman Mining — Shareholder Meeting (November 2017)
41 slides from Talisman Mining's shareholder meeting presentation, Nov 23, 2017
Slide 1: Discovering & Developing Opportunities in Copper-Gold & Nickel
Focused Australian mineral resources company For personal use only Discovering & Developing Opportunities in Copper-Gold & Nickel AGM Presentation: November 2017 Focused Australian mineral resources company Page: 1
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: Talisman Overview
Talisman Overview For personal use only Monty development and near-term production ♦ High grade copper mine – Monty Ore Reserve = 8.7% Cu ♦ Monty pre-production finance secured -$US 20 million facility ♦ Monty mine development underway– forecast production start in approx. 12 months Significant expl
Slide 4: The Last Year
The Last Year ► Oct 2016 – Nickel mineralisation returned from drilling at Delphi North For personal use only ► April 2017 – Monty Feasibility Study Completed ► April 2017 – Execution of Ore Sales Agreement for Monty ore and JV Agreements ► July 2017 – Approval of Monty Mining Proposal and commencem
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 Monty provides tremendous confidence in the exceptional exploration potential of the Springfield JV For personal use only ♦ Talisman 30% interest in JV with Sandfire Resources NL (70% and JV Manager) ♦ Proven world-class VMS province and geological model ♦ Multiple VM
Slide 7: Key Monty Feasibility Study outcomes (TLM 30% basis ungeared)
Key Monty Feasibility Study outcomes (TLM 30% basis ungeared) Low capital and low risk development pathway with outstanding forecast returns For personal use only Initial ore production life Total payable production = Forecast pre-tax1 free cash flow = 30 months 19.9kt Cu and 5.7koz Au = A$64M Pre-p
Slide 8: 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 9: US$20M Monty financing secured (TLM 30% basis)
US$20M Monty financing secured (TLM 30% basis) Talisman’s share of forecast pre-production capital now fully funded For personal use only ♦ Competitive process involving major Australian banks and other typical resource project lenders ♦ Project debt finance facility of up to US$20M executed with Ta
Slide 10: Monty Development and underground mining
Monty Development and underground mining A conventional underground operation For personal use only Target Monty project development 1Q 2Q 3Q 4Q 1Q 2Q 3Q timeline FY18 FY18 FY18 FY18 FY19 FY19 FY19 3D schematic of Monty decline and Detailed design and engineering P underground mine design Early mobi
Slide 11: Monty Deposit and near mine opportunities – 8km Monty Trend
Monty Deposit and near mine opportunities – 8km Monty Trend Untested potential for further mineralisation in Monty near mine environment For personal use only ♦ Current Mine Plan includes higher-grade, higher- tonnage LZ only ♦ Potential for excluded Upper Zone (UZ) to enter mine plan with grade con
Slide 12: 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, eg Noranda VMS mining camp ♦ Bryah Basin VMS Camp now with three VM
Slide 13: Springfield – Multiple Prospective Horizons
Springfield exploration Springfield – Multiple Prospective Horizons For personal use only ♦ Potential for multiple host horizons within prospective corridors ♦ Monty, Homer, Southern Volcanics and Central ♦ Limited diamond and RC drilling by JV outside of Monty Resource ♦ ~90% of JV diamond holes dr
Slide 14: Springfield exploration upside potential
Springfield exploration upside potential New interpretations at multiple locations to be tested in the current quarter For personal use only Monty NE Homer South Monty Host Stratigraphy Monty East (new interpreted position Monty Off-Set Monty Deposit Monty Host Stratigraphy ♦ Recently identified opp
Slide 15: Springfield exploration upside potential – Homer South
Springfield exploration upside potential New interpretations at For personal use only Homer South Focused Australian mineral resources company Page: 15
Slide 16: Sinclair Nickel Project
For personal use only Sinclair Nickel Project Advanced opportunity in a proven nickel province Focused Australian mineral resources company Page: 16
Slide 17: Sinclair: A low cost, fast track nickel production option
Sinclair: A low cost, fast track nickel production option Premium surface and underground assets with extensive infrastructure For personal use only ♦ Located in the world-class Agnew-Wiluna Greenstone belt ♦ +9Mt historical nickel production ♦ Previous Sinclair mine production (2008-13) ♦ 1.58Mt @
Slide 18: Sinclair: Development potential under right scenario
Sinclair: Development potential under right scenario Significant infrastructure in place with replacement value of approx. A$120M For personal use only ♦ 350ktpa concentrator ♦ Operated at ~440ktpa ♦ Open pit, decline and underground mine ♦ 200-person accommodation village ♦ Administration buildings
Slide 19: NSW Project Development
For personal use only NSW Project Development Building a New Exploration Focus Focused Australian mineral resources company Page: 19
Slide 20: Talisman Project Generation – NSW Lachlan Orogen Focus
Talisman Project Generation – NSW Lachlan Orogen Focus ♦ NSW selected as an initial focus region: For personal use only ♦ Well endowed and proven gold and base metal district with production and current reserves estimated at: ♦ 20.3 Mt Cu, 104 Moz Au, 29 Mt Ag1 ♦ Under explored – minimal to no recen
Slide 21: New Project: NSW Canbelego-Mineral Hill Rift Zone
New Project: - NSW Canbelego-Mineral Hill Rift Zone ♦ Low cost project entry For personal use only ♦ New project generation/ pegging of new tenement applications ♦ Earn-in JV opportunities ♦ Two new granted tenements (TLM 100%), and one application located along the Gilmore Suture Zone: ♦ Myamley –
Slide 22: Myamley Base Metal Project
Myamley Base Metal Project ♦ Myamley Base Metal Project (EL8615)- Located For personal use only along the large Gilmore Suture Zone, north of Mineral Hill Mine ♦ Known historic mineral occurrences – “Rip and Tear Mine” ♦ Very little modern systematic exploration undertaken to date: ♦ Auger drilling,
Slide 23: Sussex Cu-Au Project
Sussex Cu-Au Project ♦ Sussex Gold Project (EL8659)- Located along the Large For personal use only Crustal scale Gilmore Suture Zone, north of Mt Boppy Mine ♦ Known historic mineral occurrences – Cobra Shaft, Earl of Sussex and Big Reef prospects ♦ Limited modern systematic exploration undertaken to
Slide 24: New Project – Peel Mining Ltd Farm-In
New Project – Peel Mining Ltd Farm-In ♦ TLM has the right to earn up to 75% of For personal use only two granted ELs through expending a total of $700k over 5 years (Mt Walton and Michelago) ♦ Mt Walton (EL8414) ♦ Historic exploration includes: surface sampling, gravity and IP surveys, limited isola
Slide 25: New Project – Peel Mining Ltd Farm-In
New Project – Peel Mining Ltd Farm-In ♦ Michelago (EL8451): For personal use only ♦ Located within the well endowed Goulbourn Trough which is host to the large Woodlawn lead-zinc deposit ♦ Covers a total strike extent of 50Km ♦ Prospective for Volcanic Associated Massive Sulphide (VAMS) deposits sim
Slide 26: New Project – Proposed work for 2018
New Project – Proposed work for 2018 For personal use only ♦ Execution of Land Access Agreement over remaining project areas ♦ Field mapping and geochemical sampling following structural targeting exercise ♦ On-ground field work expected to commence in early 2018: ♦ Systematic regolith sampling over
Slide 27: The Talisman Investment Case
For personal use only The Talisman Investment Case Emerging metals producer with exceptional prospectivity Focused Australian mineral resources company Page: 27
Slide 28: The Talisman Investment Case - Looking Ahead
The Talisman Investment Case -Looking Ahead Emerging metals producer with exceptional prospectivity For personal use only ♦ Monty a high-grade, high-returning copper-gold project ♦ Development underway ♦ Low risk, low capital driven by ore sales arrangement ♦ Pre-production capital fully financed ♦
Slide 29: Corporate snapshot
Corporate snapshot Experienced and diverse Executive Team and Board Capital Structure For personal use only Dan Madden – Managing Director Shares on Issue 185.7M ♦ +15 years experience across base and precious metals from exploration Unlisted Options 9.7M through to operations Market Capitalisation
Slide 30: Discovering & Developing Opportunities in Copper-Gold & Nickel
Focused Australian mineral resources company For personal use only Discovering & Developing Opportunities in Copper-Gold & Nickel AGM Presentation: November 2017 Focused Australian mineral resources company Page: 30
Slide 31: 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 32: 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 33: Appendix – Additional Monty Feasibility Study Detail
For personal use only Appendix 2 Additional Monty Feasibility Study Detail Focused Australian mineral resources company Page: 33
Slide 34: Capital and operating cost detail
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 Ore transport to DeGrussa
Slide 35: Monty Mineral Resources
Monty Mineral Resources5 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 36: Monty Ore Reserves and mine plan
Monty Ore Reserves6 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 80,000
Slide 37: 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 38: 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 39: 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 40: 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 41: 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
Talisman Mining — Shareholder Meeting (November 2017) on 6ix