TALISMAN MINING LIMITED - ASX: TLM

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Description

Talisman Mining Ltd is a well funded and supported Australian Mineral exploration company with key interests in base metals, iron ore and gold. The core exploration focus of the company is currently within the mineral rich provinces of Western Australia.

The company is:

* Well funded with a strong commitment to exploration and organic growth;
* Assessing the potential of its high-quality VMS copper-gold exploration portfolio across Western Australia’s Bryah Basin;
* Actively exploring the Springfield-Copper/Gold Project which is located 5km from Sandfire Resources Limited’s high grade De Grussa discovery (7.12Mt @ 5.2% Cu and 1.9g/t Au);
* Identifying commercial pathways for its portfolio of iron ore assets; and
* Targeting new growth opportunities.

Springfield Copper/Gold Project

* Initial reconnaissance exploration by Talisman has identified the continuation of the same Upper Narracoota Volcanic Formation that hosts Sandfire Resources' high grade DeGrussa Cu/Au deposit for approximately 25 kilometres within the Springfield Project Area.
* The Springfield Project tenement boundary is approximately 5 kilometres to the east of Sandfire's DeGrussa discoveries.
* The typical nature of VMS deposits is that they occur in 'camps' of multiple deposits. This well understood geological concept potentially opens up the Springfield Project as one of the most prospective exploration properties in Western Australia for the discovery of high grade copper-gold VMS deposits.
* The Springfield Project comprises three Exploration Licence Applications (ELA) pegged by Talisman as part of a strategy targeting prospective formations within the Peak Hill District for gold and copper mineralisation.
* Historical open file soil geochemical data has identified a robust, highly anomalous copper response (with some supporting gold) immediately along strike of the DeGrussa discoveries. In addition, a series of copper anomalies that require detailed programs of follow-up exploration have been identified throughout the wider Springfield Project area.

Milgun Copper/Gold Project

The Milgun Project is located approximately 150km north of Meekatharra in the northern Murchison gold field within the Bryah Basin which also hosts Talisman's Springfield Cu/Au Project.

The Milgun Project consists of one granted Exploration Licence pegged by Talisman as part of a strategy targeting prospective formations within the Peak Hill District. Initial reconnaissance exploration at Milgun has identified the existence of the prospective Narracoota Volcanics Formation through the project area, with this formation being prospective for gold and copper-gold VMS style mineralisation.

Trillbar Copper/Gold Project (Talisman Mining Ltd 80%, Murchison Resources Pty Ltd 20%)

The Trilbar Project is situated in the Peak Hill goldfield, Western Australia, approximately 160km north west of Meekatharra. The Trillbar Project covers a suite of rocks dominated by the Proterzoic aged Bryah and Padbury Basins, including over 30km strike of the Narracoota Volcanic Formation, known to be highly prospective for VMS style Cu/Au mineralisation.

Existing exploration activities to date have not appraised the potential of the Naracoota Volcanic Formation to host Cu/Au mineralisation within the Trillbar Project but have focussed on defining high-grade lode-gold mineralisation, including the definition of the Boundary Gold Resource, gold mineralisation at Winja as well as numerous drill ready targets possibly indicating further Boundary or Winja type gold mineralisation.

Ongoing works, as a priority will concentrate upon delineating the potential of the Naracoota Volcanic Formation to host VMS Cu/Au mineralisation through the re-evaluation of existing exploration datasets, as well as carrying out complimentary geochemical sampling programs within the Trillbar Project.

The Trillbar Project area also hosts extensive Banded Iron Formations with the potential for substantial high-grade hematite resources typical of the Mid West region of Western Australia. Outcropping areas of these BIFs have returned very encouraging rock chip results (up to 65% Fe), however at this stage remain effectively untested by drilling.

The project also remains prospective for shallow calcrete-hosted Uranium (carnotite) mineralisation, as well as for high-grade (cosmetic-grade) talc mineralisation (as occurs in the excised encompassed Mt Seabrook Talc Operations).

Shelby Copper/Gold Project

The Shelby Project is situated in the Peak Hill goldfield, Western Australia, approximately 240km north of Meekatharra and 30km north of the Horseshoe Lights Copper-Gold Mine. The project consists of three Exploration Licence Applications covering a position on the southern margin of the Bangerall Basin, targeting an area of the Bryah Basin that is interpreted to extend under the overlying younger sedimentary basin. This area is interpreted to represent the buried, potential northern strike continuation of the Narracoota Volcanics Formation. The western part of the applications encompasses an area of exposed Bryah Basin that may host prospective stratigraphy within Ravelston Formation sediments similar to the nearby Horseshoe Lights Mine.

Ongoing work will, as a priority, concentrate upon delineating the depth of the cover, as well as the nature of the large magnetic feature currently interpreted as buried Bryah Basin and its potential to host Cu-Au Mineralisation, as well as evaluating the potential of the western exposed sequence to host prospective Narracoota Volcanics Formation.

Uaroo Copper/Gold Project

The Uaroo Project lies within the Ashburton Mineral Field approximately 370km northeast of Carnarvon along the Northwest Coastal Highway near the Uaroo Homestead in Western Australia. The Project covers a prospective suite of rocks that have had little effective historic exploration for their gold and base metals potential. To date work completed at Uaroo by Talisman has included drainage and rock chip sampling.

Talisman considers that this project may be prospective for VMS style base metals mineralisation (zinc and lead) and further desktop review and data compilation is ongoing prior to carrying out further field-based exploration activities. The project also has potential for iron ore.

Maitland Gold Project (Talisman Mining Ltd 80% - Murchison Resources Pty Ltd 20%)

The Maitland gold project covers all of the Maitland Greenstone Belt in the northern Yilgarn block, Western Australia. This poorly explored area is considered to have good potential for gold.

Reconnaissance soil geochemistry at predominantly 200m x 40m centres has been completed over all of the Maitland Greenstone Belt not obscured by transported cover (Figure 1). In addition to strong gold-in-soil anomalies defined coincident with the abandoned gold workings at Maitland South and Maitland North, several anomalies were also defined coincident with the Mudawerrie BIF and in other areas of the Greenstone Belt. The significance of these latter anomalies is yet to be determined.

Reconnaissance RC drilling has been completed across the Mudawerrie gold anomaly, returning a best intercept of 2m @ 1.54g/t gold, and reconnaissance RC drilling at Maitland South gold workings returned a best intercept of 4m @ 3.82g/t gold.

Yamarna Gold Project

The Yamarna Project is located in the Eastern Goldfields region approximately 160km northeast of Laverton, the most easterly Archaean greenstone belt in the Yilgarn Craton. The area has been host to some very minor historic workings in the district, with exploration in the area only occurring essentially since the 1990's. Trending NW/SE, the greenstone belt is 170km in strike length and attains a thickness of 12 km. The Yamarna Project occupies a position within the centre of this greenstone belt. Initial assessment of the regional geophysics data suggests that the greenstone belt is much more extensive than the outcrop and GSWA mapping suggests, with continuation beneath shallow cover evident.

Wonmunna Iron Ore Project

The Wonmunna iron project is situated in the heartland of the East Pilbara iron-ore mining industry, with three major mines within a 25km radius, the West Angelas (Rio Tinto), Hope Downs 1 (Rio Tinto/Hancock) and Mining Area C (BHP Billiton) Operations.

Talisman has entered into an Option Agreement with E-Com Multi Limited to grant it a three-month option to purchase the Wonmunna and Uaroo iron ore projects for a consideration of $41.35 million, comprising cash of $34.25 million and shares in E-Com Multi Limited to the value of $7.1 million.

Anticline & Tom Price Iron Ore Project

A Royalty Agreement is in place with Fortescue Metals Group Ltd covering the rights to iron ore of this project.

Gangarigan, Wandanya and Yilgalong Manganese Project (Talisman Mining Ltd 100% - Shaw River Resources earning 70%)

Talisman has consolidated three projects (Wandanya, Gangarrigan and Yilgalong) that are prospective for manganese in relatively close proximity to the Woodie Woodie Manganese Mine in the East Pilbara Mineral Field. In October 2009, Talisman entered into a Farm - Out Agreement with focused manganese explorer, Shaw River Resources.

Under the Farm - Out Agreement Shaw River Resources can earn a 70% joint venture interest in these projects and now manage exploration activities at projects in accordance with the terms of that Agreement. Shaw River Resources have renamed these projects the Skull Springs Project.

Mine For

copper, gold, iron ore, manganese

Location of operation(s)

Western Australia

Address

6 Centro Ave
SUBIACO, WA, AUSTRALIA

Phone

(61 8) 9380 4230

Email

Website

http://www.talismanmining.com.au

Last Updated

27/01/2011