Talisman Mining Limited · ASX:TLM
Talisman Mining — 121 Mining Investment Conference, Hong Kong, October 2017
36 slides from Talisman Mining's conference presentation, Oct 16, 2017
Slide 1: Focused Australian mineral resources company
Focused Australian mineral resources company For personal use only Discovering & Developing Opportunities in Copper-Gold & Nickel Investor Presentation: 121 Conference, Hong Kong, October 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: Rare Investment Opportunity
Talisman overview Rare Investment Opportunity For personal use only ♦ Mix of near-term production, development and exploration across copper and nickel in a Tier 1 jurisdiction One of few ASX listed companies with unique exposure to ♦ High grade copper mine – Monty Ore Reserve = 8.7% Cu ♦ Tier 1 jur
Slide 4: Talisman core projects
Talisman core projects Advanced projects in Western Australia For personal use only 30% interest in Springfield Cu-Au Joint Venture ♦ High grade Monty deposit located 10km from DeGrussa ♦ Monty FS complete with outstanding forecast returns ♦ Construction and mine development underway ♦ First product
Slide 5: 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 6: 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: 6
Slide 7: 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 8: 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 ♦ Fast-tracked towards development ♦ Discovery hole – June 2015 ♦ Resource Estimate – April 2016 ♦ Feasibility Study (FS) – April 2017 ♦ Mining Proposal Approved –
Slide 9: Key Monty Feasibility Study outcomes
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 10: Monty development
Monty development Site works commenced and first Monty production targeted for Q4 calendar 2018 For personal use only ♦ All regulatory approval received for Monty development and production ♦ Earthworks nearing completion including 14km haul road to DeGrussa plant ♦ Box-cut completed and decline com
Slide 11: Monty Ore Reserve and underground mining
Monty Ore Reserve and underground mining A conventional underground operation For personal use only ♦ Ore reserve consists of Upper Zone (UZ) and Lower Zone (LZ) ♦ Current Mine Plan includes higher-grade, higher-tonnage LZ only ♦ First ore targeted for 12 months from portal cut ♦ Conventional 1-in-7
Slide 12: 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 13: Springfield exploration: proof of concept for Doolgunna VMS Camp
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 14: 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 ♦ Central ♦ Limited diamond and RC drilling by JV outside of Monty Resource ♦ ~90% of JV diamond holes dr
Slide 15: Monty Trend – 8km trend within Monty Corridor
Monty Trend – 8km trend within Monty Corridor Untested potential for further mineralisation in Monty near mine environment For personal use only ♦ Lower Zone (LZ) growth potential with grade control drilling ♦ Potential for excluded Upper Zone (UZ) to enter mine plan with grade control drilling ♦ Re
Slide 16: 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 17: 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: 17
Slide 18: 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 ♦ Low capital, low risk development path utilising DeGrussa plant ♦ Pre-production Capital of $22M (TLM share) expected to be fully debt funded ♦ JV Partner (Sandf
Slide 19: Sinclair Nickel Project
For personal use only Sinclair Nickel Project Advanced opportunity in a proven nickel province Focused Australian mineral resources company Page: 19
Slide 20: 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 ♦ $8M acquisition from Glencore in Nov 2014 ♦ Previous Si
Slide 21: 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 ♦ Resource targets for known mineralisation at Sinclair mine extension plus Sinclair remnants ♦ Other potential resource targets at
Slide 22: 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 23: New Project Generation: NSW Cobar Region
New Project Generation: - NSW Cobar Region ♦ Aligned with core exploration expertise and added at low cost For personal use only ♦ Located within the Cobar/Mineral Hill region of central NSW ♦ Richly mineralised district hosting a number of base/precious metal mines ♦ Highly prospective geology with
Slide 24: The Talisman Investment Case
For personal use only The Talisman Investment Case Emerging metals producer with exceptional prospectivity Focused Australian mineral resources company Page: 24
Slide 25: The Talisman investment case
The Talisman investment case Emerging metals producer with exceptional prospectivity For personal use only ♦ Monty 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 arrangement ♦ Cu
Slide 26: Focused Australian mineral resources company
Focused Australian mineral resources company For personal use only Discovering & Developing Opportunities in Copper-Gold & Nickel Investor Presentation: 121 Conference, Hong Kong, October 2017 Focused Australian mineral resources company Page: 26
Slide 27: 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 28: Additional Monty Feasibility Study Detail
For personal use only Appendix 2 Additional Monty Feasibility Study Detail Focused Australian mineral resources company Page: 28
Slide 29: 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 30: 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 31: 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 32: A highly competitive Ore Treatment Fee (OTF)
A highly competitive Ore Treatment Fee (OTF) ♦ Ore Treatment Fee (OTF) of approx. A$211/t ore For personal use only ♦ Recognises all downstream costs post ore sale: ♦ Ore processing and associated business services/G&A ♦ Concentrate transport and refining costs (~55% of OTF) ♦ A dedicated plant usag
Slide 33: Monty Feasibility Study operating and financial outcomes
Monty Feasibility Study operating and financial outcomes (30% basis) A technically sound and highly economic underground project For personal use only All costs borne by the Springfield Joint Venture under the OSA are incorporated in the Monty financial analysis on a 100% basis. As such, Talisman’s
Slide 34: Capital and operating cost detail
Capital and operating cost detail Capital cost composition (TLM 30% basis) Operating cost parameters (TLM 30% basis) For personal use only Capital item A$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
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