Talisman Mining : Encouraging VMS Base Metal and Gold Intersections

For personal use only

6 June 2022

Encouraging VMS Base Metal and Gold Intersections Highlight Prospectivity of Kaolin Shaft Prospect, NSW

Initial drilling intersects wide zones of VMS-style base metal sulphide and gold

mineralisation over an extensive strike length

Highlights

• Assays returned for four of 10 drill-holes displaying finely disseminated to semi-massive sulphides with wide intercepts of shallow base and precious metal mineralisation, including:

• • KSRC0008: 32m @ 1.25% Pb, 0.15% Zn, 12.1g/t Ag, 0.37g/t Au, 370ppm Cu from 6m including 6m @ 1.3% Pb, 0.15% Zn, 6.3g/t Ag, 1.45g/t Au, 318ppm Cu from 14m
  • KSRC0009: 12m @ 0.78% Pb, 2.13% Zn, 6.3g/t Ag, 240ppm Cu from 82m including 4m @ 1.29% Pb, 3.96% Zn, 8.9g/t Ag, 394ppm Cu from 90m
  • KSRC0010: 14m @ 0.48% Pb, 25.7g/t Ag, 0.12g/t Au from surface; and
    4m @ 0.77% Pb, 1.73% Zn, 6.4g/t Ag, 0.11g/t Au, 391ppm Cu from 98m; and 4m @ 0.45% Pb, 0.41% Zn, 3.9g/t Ag, 0.21% Cu from 146m
  • KSRC0011: 16m @ 1.02% Pb, 1.06% Zn, 5.6g/t Ag, 0.35g/t Au, 580ppm Cu from 98m including 2m @ 0.46% Pb, 0.34% Zn, 2.9g/t Ag, 1.34g/t Au, 344ppm Cu from 102m; and including 2m @ 2.75% Zn, 2.2% Pb, 11.1g/t Ag, 0.27g/t Au, 700ppm Cu from 108m
• Zones of copper and gold enrichment within the wide mineralised intervals indicate multiple phases of mineralisation within the same system, increasing the prospectivity to discover further polymetallic mineralisation.
• Assays pending for a further six drill-holes, where similar base metal sulphide mineralisation was observed during drilling.
• Initial assays indicate that the prospect is open laterally and extends below cover and at depth, highlighting the potential to significantly expand the prospect.
• Kaolin Shaft is located 11km south-east of the Mineral Hill Polymetallic Mine in NSW, where processing operations have recently re-commenced.

Talisman Mining Ltd (ASX: TLM, Talisman) is pleased to report highly encouraging assay results from initial drilling at the Kaolin Shaft Gold Prospect, located within its Central Lachlan Project in NSW. The initial assays have reinforced the prospectivity of the Kaolin Shaft Prospect for VMS-style polymetallic mineralisation potentially similar to that at the nearby Mineral Hill mine.

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Talisman has received assays for four of 10 drill-holes completed as part of a recent Reverse Circulation (RC) drilling program at Kaolin Shaft, which is located 11km south-east the Mineral Hill Mine in the Canbelego-Mineral Hill Volcanic Belt area of NSW.

The results have confirmed the presence of wide intervals of polymetallic (Zn-Pb-Ag-Au-Cu) volcanic massive sulphide (VMS) mineralisation across the prospect area, further reinforcing the potential of the Kaolin Shaft Prospect to host significant polymetallic mineralisation.

Kaolin Shaft Gold Prospect (EL8680: TLM 100%)

The Kaolin Shaft Gold Prospect was identified on the basis of shallow historic exploration and a targeted program of soil geochemistry conducted by Talisman in 2019, indicating the presence of a wide gold-in-soil anomaly1. Geology at the prospect area contains variably silicified and ferruginous volcanogenic sediments, tuffs and other volcanics of the Canbelego Mineral Hill Volcanic Belt (CMHVB).

During the February 2022 drill program, 10 RC holes were drilled across three section lines for a total 1,894m (Figure 1 and Table 1). The drilling intersected zones of finely disseminated visual base metal sulphides (sphalerite-galena-chalcopyrite) consistent with the distal zones of a VMS mineral system.

OPEN

Figure 1 - Plan view of current and historical drilling locations with gold-in-soil anomaly.

Assays to date have indicated that a thick zone of low-grade sulphide mineralisation remains open to the south of the prospect, with the thickness of sulphide mineralisation increasing considerably

• Refer Talisman ASX announcement dated 22 July 2019 for full details including JORC tables.

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and the best copper sulphides intersected in the southernmost hole KSRC0010 (Figure 2 and Table2).

The basement is concealed below transported tertiary cover sequences in this area, making southern extensions to the prospect highly prospective. It is particularly encouraging that base metal and gold intercepts of interest were encountered distal to the main gold-in-soil anomaly targeted by this drill program.

Down-holeelectro-magnetic (DHEM) surveying was carried out on KSRC0009 and KSRC0012 which was inconclusive at delineating nearby conductors, however visual inspection of the mineralisation intersected in the drill-holes suggests that it would be unlikely to return a conductive anomaly due to the finely disseminated nature of the sulphides.

These surveyed holes were also distant from the extended sulphide intercepts seen in KSRC0010, which may explain why no positive responses were returned.

Figure 2 - Section A-A' across Kaolin Shaft Prospect showing sulphur envelope >1%.

Talisman has recently completed an Airborne Electro-Magnetic (AEM) survey across the Kaolin

Shaft Gold P ec a d e a ge M e a H T e d g e d

ead g VTEM Ma AEM2.

• Refer Talisman ASX announcement dated 17 January 2022 for full details including JORC tables.

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The area of this survey in reference to the Kaolin Shaft Gold Prospect location and Talisman Exploration Licences is shown in Figure 3.

Final data has now been delivered for this survey and is being processed and interpreted by

Ta a e e e ced ge ca c a , S e Ge c e ce. I a c a ed a e survey will deliver conductive anomalies linked to the presence of a larger VMS system in this area.

Planning for follow-up RC drilling at the Kaolin Shaft Gold Prospect is currently in progress.

Figure 3 - Prospect locations, TLM Exploration Licences and nearby mining operations.

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Management Comment

Ta a CEO, S a V e , a d: It is exciting to see positive results from the first batch of

assays returned from the recent RC drilling at Kaolin Shaft. The presence of polymetallic mineralisation along trend from, and very close to, the Mineral Hill Mine validates our interest in this area. We have a very busy six months ahead of us and we are looking forward to doing more substantive work in the area as we digest the results of our recent regional-scale geophysical surveys together with follow-up drilling at Kaolin Shaft.

Ends

For further information, please contact:
Shaun Vokes CEO	Nicholas Read (Media inquiries)
on [phone]	on [phone]

This release has been authorised by the Board of Talisman Mining Limited.

About Talisman Mining

Ta a M g L ed (ASX:TLM) a A a a e a de e e a d e a c a . T e C a a maximise shareholder value through exploration, discovery and development of complementary opportunities in base and precious metals.

Talisman has secured tenements in the Cobar/Mineral Hill region in Central NSW through the grant of its own Exploration Licenses and through a joint venture agreement. The Cobar/Mineral Hill region is a richly mineralised district that hosts several base and precious metal mines including the CSA, Tritton, and Hera/ Nymagee mines. This region contains highly prospective geology that has produced many long-life,high-grade mineral discoveries. Talisman has identified a number of areas within its Lachlan Cu-Au Project tenements that show evidence of base and precious metals endowment which have had very little modern systematic exploration completed to date. Talisman believes there is significant potential for the discovery of substantial base metals and gold mineralisation within this land package and is undertaking active exploration to test a number of these targets .

Talisman also has a majority participating interest in a joint venture with privately-owned Lucknow Gold Limited in relation to the Lucknow Gold Project (EL6455) in New South Wales. The Lucknow Goldfield was discovered in 1851 and was one of the earliest goldfields to be mined commercially in Australia. Historic production records at the Project are incomplete, however in excess of 400,000 ounces of gold has reportedly been produced at grades of 100 to 200 g/t gold3.Very little modern exploration has been completed outside of the existing mine workings and Talisman intends to undertake a program of geochemical surface sampling and mapping at the 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.

C m e en Pe n S a emen

Information in this announcement that relates to Exploration Results and Exploration Targets is based on, and fairly represents information and supporting documentation complied by Mr Russ Gregory, who is a member of the Australasian Institute of Geoscientists. Mr Gregory is a full-time employee of Talisman Mining Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken to qualify as a Competent Person

a def ed e 2012 Ed f e A a asian Code for Reporting of Exploration Results, Mineral Resources and Ore Re e e . M Gregory has reviewed the contents of this announcement and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear.

Forward-Looking Statements

This ASX release may include forward-looking statements. These forward-looking statements are not historical facts but rather

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• NSW DIGS report, First Annual Exploration Report EL5770, 2001 -R00030162

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