Talisman Mining (ASX: TLM) has expanded its landholding in the prospective Lachlan Fold Belt of New South Wales.
Talisman Mining, through a farm-in agreement with private company Bacchus Resources Pty Ltd.
Bacchus is a privately-owned exploration company with a primary focus on the exploration and potential development of the Wollwonga gold project in the Pine Creek Orogeny of the Northern Territory.
Under the terms of the Farm-in Agreement, Talisman has the right to earn up to an 80 per cent interest in six granted exploration licences, covering an area of approximately 1,067 square kilometres held by Bacchus in the Lachlan Fold Belt through on-ground expenditure of $2.3 million over a four-year period.
Talisman will undertake a staged farm-in, involving an expenditure of $1.3 million in the first 36 months from commencement to earn a 51 per cent interest.
Should Talisman elect to continue, it will be required to spend a further $1 million over 12 months to earn an 80 per cent interest.
Talisman has also inked a purchase agreement with Kidman Resources (ASX: KDR), under which it will acquire a 100 per cent interest in the Kidman copper-gold projects.
Kidman’s Crowl Creek project comprises a total of six granted exploration licences covering an area of approximately 278sqkm , which are adjacent to, and west of, the Mineral Hill polymetallic mine.
Crowl Creek covers the same stratigraphic sequence and a parallel structure to the Mineral Hill deposit host structure and is considered prospective for low-sulphidation epithermal and orogenic precious and base-metals mineralisation.
Talisman has entered into an agreement to purchase the Crowl Creek project from Kidman for consideration of $250,000 which becomes payable upon formal renewal, transfer and registration of the tenements from Kidman to Talisman by the NSW Department of Industry Division of Resources and Energy.
The company considers both projects to be complementary and contiguous with its existing 100 per cent-owned NSW exploration tenements and the previously announced Peel Mining (ASX: PEX) Joint Venture where Talisman is earning up to a 75 per cent interest.
“Securing control of these two projects consolidates Talisman’s position in the highly mineralised Lachlan Fold Belt and provides an exciting new front for gold and base metal exploration activities,” Talisman Mining managing director Dan Madden said in the company’s announcement to the Australian Securities Exchange.
“Talisman has secured its large 2,360 square kilometre position for minimal upfront cost and near-term capital commitment.
“The focus of expenditure on the New South Wales projects will be into the ground, with on-ground activities starting in early 2018 and our first drill program anticipated late in the March quarter 2018.
“The Lachlan Fold Belt projects fit neatly alongside the ongoing active exploration program being undertaken at the Springfield Joint Venture in Western Australia where we believe significant upside potential remains.”