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Talisker to double Bralorne drilling after New Gold deal closes

Talisker Resources plans to double its 50,000m drilling programme to 100,000m at Bralorne in British Columbia, Canada, after it closes a C$19.1 million financing concurrent with New Gold taking a 14.9% ownership stake in the company, Talisker Resources president and CEO Terry Harbort said during a webinar.
Talisker to double Bralorne drilling after New Gold deal closes Talisker to double Bralorne drilling after New Gold deal closes Talisker to double Bralorne drilling after New Gold deal closes Talisker to double Bralorne drilling after New Gold deal closes Talisker to double Bralorne drilling after New Gold deal closes

Talisker Resources' Bralorne project in British Columbia, Canada

Harbort said the company was pleased with the New Gold investment due to its operating presence in the region at its New Afton mine and experience with underground bulk mining and narrow vein mining.

"New Gold has a very impressive technical team with a lot of bulk tonnage underground experience. CEO Renaud Adams has a lot of experience with narrow vein mining. We have road access to New Afton and they will be looking for feed for their mill so they will be both a good funding partner and a good technical partner, but New Gold is not looking to manage us," said Harbort.

Talisker has drilled 18,692m in 33 holes so far and earlier this week reported high-grade gold intersepts about 750m below and along strike of the historic King Mine at Bralorne, its first hole under King. Highlights from King included 90cm grading 9.95 grams per tonne, 50cm grading 13.90g/t at the Bralorne East and 70cm grading 10.30g/t at Bralorne West.

The company said it also encountered broad halos of lower-grade mineralisation adjacent to high-grade veins, which would reduce dilution in a mining scenario and open the potential for bulk tonnage mining and possibly underground bulk tonnage mining.

"The historical King mine was undercapitalised which is why it wasn't mined below 350m depth. Bralore was known for continuity of grade and the veins in the past and this shows that the majority of veins extend down 750m below the mined stopes," said Harbort.

Harbort said the company was aiming to build its resource to more than 5 million ounces and be seen as a tier one gold deposit which could potentially be of interest to bigger gold producers. "Our New Gold agreement has a 24-month standstill to allow us to grow the company without any fear of a takeout at too early a stage," he said.

"Our strategic investor strategy sees us keep premium potential partners updated."

Shares in Talisker Resources are trading at C32c, valuing the company at $70 million.