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New Talisman starts life with $9.2m in funds

BUSINESSDESK: New Talisman Gold Mines, formerly known as Heritage Gold, is starting out with $9.24 million in equity as it prepares to develop the Talisman gold prospect on the Coromandel Peninsula.

New Talisman recently replaced Heritage on the NZX and ASX main boards, with Mongolian and Papua New Guinean projects hived off to a new entity to allow focus on the Talisman project, which a scoping study has identified as a "very robust and highly profitable project".

The Hauraki gold field project was assessed to have a net present value of more than $A150 million at a 7.5% discount rate over a 20-year life, subject to several assumptions.

The company has also identified "the possibility of additional underground resources for medium term development" at the adjacent Taukani Hill and a survey in the nearby Rahu permit points to "the likelihood of feeder veins at depth that may be mineralised".

A pre-feasibility study is not underway for the rest of 2012, to consider options for each of the main asepcts of the project, with the company taking "a high regard for the community and the environmental, scenic and heritage values of the area", chairman Richard Pearse said.

In the 12 months ended March 31, New Talisman - then trading as Heritage Gold - recorded a loss on operations of $537,802, consistent with a mining company engaged in exploration activity.

Added to this was $313,997 of losses associated with its ongoing 21.7% holding in Broken Hill Prospecting, a cobalt prospect in New South Wales.

That took total equity at balance date to $9.24 million, compared with $10.1 million at March 31 2011.

New Talisman shares were up 12.5% today in trading on the NZX, at 1.8 cents apiece.