THE BOURSE WHISPERER: Talisman Mining (ASX: TLM) has entered into a farm-in agreement (FIA) with privately-owned Lucknow Gold Limited in relation to the Lucknow gold project in New South Wales.
Talisman Mining’s wholly-owned subsidiary, Talisman B Pty Ltd, has entered into the FIA with Lucknow Gold.
Talisman will be manager of the exploration program throughout the earn-in period.
Talisman B has the right to earn up to a 70 per cent interest in the project, by spending a minimum of $1.5 million on exploration over four years and issuing $250,000 worth of Talisman shares to Lucknow Gold.
The Lucknow Goldfield is located within the Macquarie Arc in NSW, which hosts extensive gold and copper mineralisation including the Cadia-Ridgway (copper-gold) and McPhillamys (gold) deposits, as well as the Browns Creek (copper-gold), Forrest Reefs (gold) and Junction Reefs (gold) deposits.
Talisman Mining said the project still ranks highly amongst global high-grade gold mines despite there being very little modern exploration completed outside of the existing mine workings.
Talisman indicated it intends to undertake a program of geochemical surface sampling and mapping at the Lucknow project ahead of a drilling program to test for potential down plunge extensions of the high-grade gold ore shoots and repeat structures throughout the project area.
“There have been numerous recent examples in Australia of exciting new gold discoveries being made by using modern exploration techniques to target depth extensions in known goldfields,” Talisman Mining managing director Dan Madden said in the company’s announcement to the Australian Securities Exchange.
“Lucknow is one of the world’s highest-grade gold mining areas with reported mined gold grades in excess of 100 grams per tonne, so the potential value of any new areas of mineralisation that can be identified is clear.
“The farm-in agreement is consistent with Talisman’s approach towards business development targeting advanced exploration or project development opportunities in gold and base metals where we believe we can generate value for Talisman shareholders.
“Lucknow is located within the same broad area as our Lachlan copper-gold project and will enhance our exploration activities in this very prospective mining region.
“We look forward to commencing on ground exploration activities at Lucknow which are expected to begin late in the current quarter.”