Talisman Mining Limited · ASX:TLM
Talisman Mining — 121 Mining Investment Forum, May 2017
37 slides from Talisman Mining's conference presentation, May 10, 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 Investor Presentation: 121 Mining Investment Forum, May 2017 Focused Australian mineral resources company 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Talisman Mining Limited. 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 For personal use only verified and does not pur
Slide 3: Talisman overview
Talisman overview Philosophy and OWNERSHIP Advanced projects in Western Australia Behave and act as business core beliefs ► For personal use only owners 30% interest in Springfield Cu-Au Joint Venture ► Be accountable for our decisions and actions ► High grade Monty deposit located 10km from DeGruss
Slide 4: Corporate snapshot
Corporate snapshot “Maximise value to shareholders through Capital Structure For personal use only Shares on Issue 185.7M exploration, discovery and development of Unlisted Options 10.5M complementary opportunities in base and Market Capitalisation (at 32c) ~A$60M precious metals”. Cash (31 Mar 2017
Slide 5: Springfield JV (30% Talisman)
For personal use only Springfield JV (30% Talisman) Home to the Monty deposit and a proven world-class VMS province F o c u s e d A u s t r a l Ii a n m i n e r a l r e s o u r c e s c o m p a n y 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%) ► 324km2 tenement package located in Western Australia's Bryah Basin - proven world
Slide 7: The Monty Project: High grade, high value
The Monty Project: High grade, high value One of the highest grade copper deposits discovered globally in the last 20 years For personal use only ► Fast-tracked towards development ► Discovery hole – June 2015 ► Mineral Resource – April 2016 ► Feasibility Study completed – April 2017 ► Strong Feasib
Slide 8: Key Monty Feasibility Study outcomes (TLM 30% basis)
Key Monty Feasibility Study outcomes (TLM 30% basis) Low capital and low risk development pathway with outstanding forecast returns For personal use only Initial ore production life Total payable production = Forecast pre-tax free cash flow = 30 months 20kt Cu and 6koz Au = A$64M Pre-production capi
Slide 9: Excellent capital intensity and all-in unit operating costs
Excellent capital intensity and all-in unit operating costs Very low upfront capital intensity ~US$2,000/tpa (~US$0.90/lbpa) and forecast low AISC For personal use only Initial capital intensity (US$/lbpa) of global copper mine developments (2015) Global copper production All-In-Sustaining-Cost (AIS
Slide 10: Maiden Monty Ore Reserve estimate
Maiden Monty Ore Reserve2 estimate Exceptionally high grade underground copper-gold Ore Reserve For personal use only ► Maiden Ore Reserve2 of 920kt @ 8.7% Cu & 1.4g/t Au (100%) Monty Ore Reserve2 as at 31 March 2017 ► TLM 30% share Ore Reserve = 280kt @ 8.7% Cu & 1.4g/t Au Reserve Tonnes Copper Gol
Slide 11: Strong upside potential for Monty mineral inventory
Strong upside potential for Monty mineral inventory Significant untested potential for further mineralisation in Monty near mine environment For personal use only ► Lower Zone (LZ) growth potential with grade control drilling ► Drilling of first of three deep (~1,400m) diamond holes commenced April
Slide 12: 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 ore m
Slide 13: Full exposure to key upside scenarios
Full exposure to key upside scenarios Talisman benefits fully if Monty mining or capital cost estimates prove to be conservative For personal use only ► Retain exposure to any actual variation from Monty FS revenue and Forecast Monty operating costs (excl royalties) SFR mgt fee cost estimates on: 0%
Slide 14: Key OSPA benefits for Talisman
Key OSPA benefits for Talisman A low capital, exposure minimising and high returning development route for Talisman For personal use only ► OSPA limited to Monty deposit and near-Monty extensions ► Maintain optionality in relation to any future discoveries on the Springfield JV ► No plant build requ
Slide 15: 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 G&A overheads; ► Product conc. haulage, shipping and refining costs; ► A dedicated plant usage charge.
Slide 16: Springfield Exploration Upside Potential
Springfield Exploration Upside Potential 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 Cam
Slide 17: On-going near mine exploration around Monty
Springfield Exploration Upside Potential On-going near mine exploration around Monty For personal use only ► Limited drill testing below existing Monty Resource ► Significant untested potential remains both laterally and at depth ► Three deep diamond drill holes and DHEM surveys scheduled ► Two RC p
Slide 18: Targeted drilling and DHEM along Monty Trend
Springfield Exploration Upside Potential Targeted drilling and DHEM along Monty Trend For personal use only ► Monty deposit sits within an 8km trend ► Monty Trend subject to targeted 8km RC/diamond drilling and DHEM ► Monty Trend represents one limited stratigraphic package within the wider prospect
Slide 19: Limited advanced exploration on a regional scale
Springfield Exploration Upside Potential Limited advanced exploration on a regional scale For personal use only ► Limited RC drilling by JV outside of Monty Resource ► 93% of JV diamond drill holes for resource definition ► Potential for multiple host horizons within prospective corridors ► Monty Co
Slide 20: The Monty project and the Springfield JV
The Monty project and the Springfield JV Monty is a low risk, high returning copper project with outstanding potential upside For personal use only [Photo] ► Low capital, low risk development path via ore sales to Sandfire ► Outstanding projected returns (TLM 30% basis) of A$64M pre-tax free cashflo
Slide 21: Sinclair Nickel Project
For personal use only Sinclair Nickel Project Advanced opportunity in a proven nickel province F o c u s e d A u s t r a l Ii a n m i n e r a l r e s o u r c e s c o m p a n y 21
Slide 22: Sinclair: A low cost, fast track nickel production option
Sinclair: A low cost, fast track nickel production option High class surface and underground assets with extensive infrastructure For personal use only ► Located in the world-class Agnew-Wiluna Greenstone belt ► +9Mt historical nickel production ► $8M acquisition from Glencore in Nov 2014 ► Previous
Slide 23: Sinclair: Regional and near-mine exploration potential
Sinclair: Regional and near-mine exploration potential Potential for discovery of nickel sulphide mineralisation close to existing infrastructure For personal use only ► Potential Resource target for known mineralization at Sinclair mine extension and Sinclair remnants ► Assessment of potential JORC
Slide 24: 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 ► 300ktpa concentrator ► Operated at ~440ktpa ► Open pit and underground mine ► 200-person accommodation village ► Administration buildings and stor
Slide 25: The Talisman Investment Case
For personal use only The Talisman Investment Case Emerging metals producer with exceptional prospectivity F o c u s e d A u s t r a l Ii a n m i n e r a l r e s o u r c e s c o m p a n y 25
Slide 26: The Talisman investment case
The Talisman investment case Advanced production opportunities in Western Australian base metals For personal use only [Photo] ► Monty a high-grade, high-return copper-gold project ► Low risk, low capital driven by ore sales agreement ► First production targeted December quarter 2018 ► Outstanding e
Slide 27: Thank You
Focused Australian mineral resources company For personal use only THANK YOU Discovering & Developing Opportunities in Copper-Gold & Nickel Investor Presentation: 121 Mining Investment Forum, May 2017 Focused Australian mineral resources company 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: Additional Monty Feasibility Study detail
Focused Australian mineral resources company For personal use only Appendix 2 Additional Monty Feasibility Study detail Focused Australian mineral resources company 29
Slide 30: Monty Mineral Resources
Monty Mineral Resources4 For personal use only Mineral Resource Tonnes Copper Gold Contained Contained Mineralisation Style Category (t) (%) (g/t) Copper (t) Gold (oz) 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 31: Ore Reserve estimate and Mine Plan on 100% Basis
Ore Reserve estimate and Mine Plan on 100% Basis4 For personal use only Tonnes Copper Gold Contained Contained Reserve Category (t) (%) (g/t) Copper (t) Gold (oz) Proved - - - - - Probable 920,000 8.7 1.4 80,000 42,000 Total 920,000 8.7 1.4 80,000 42,000 Mine Plan 800,000 9.4 1.5 74,000 38,000 4. Re
Slide 32: 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 OSPA are incorporated in the Monty financial analysis on a 100% basis. As such, Talisman’s
Slide 33: 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 34: Underground mining and ore haulage (Shared JV activity)
Underground mining and ore haulage (Shared JV activity) A conventional underground operation For personal use only ► Conventional 1-in-7 production size decline 3D schematic of Monty decline and underground mine design ► Life-of-Mine plan of 796kt at 9.35% Cu and 1.5g/t Au (100% basis) ► Lower Zone
Slide 35: Monty surface infrastructure
Monty surface infrastructure Fit for purpose and leverages off DeGrussa synergies For personal use only Schematic of Monty surface infrastructure ► Mined ore from surface ROM pad at Monty transported to DeGrussa via 14km haul road ► Weighbridge near DeGrussa ► Raw water supply from DeGrussa pumped t
Slide 36: 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 and Purchase Agreement (OSPA) ► Establishes the rights and obligations of the Springfield JV ► Applies to Monty ore (and ne
Slide 37: The OSPA maximises simplicity and minimises dispute risk
The OSPA 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
Talisman Mining — 121 Mining Investment Forum, May 2017 on 6ix