Talisker to ship ore to New Gold

Talisker Resources has signed an ore purchase agreement with New Gold, which will see it sell up to 350,000t of material mined from the Bralorne gold project in British Columbia, Canada, processed at New Gold's New Afton mill.

Ore will be transported by truck more than 100km to the New Afton mill from the fully-permitted Bralorne project, where underground test production from the Mustang mine is expected to start in the June quarter. New Gold owns 11.1% of Talisker.

"Having completed the portal and decline construction and our resource conversion drilling, this agreement clears the pathway for our planned 2024 production at Bralorne," said Talisker Resources chief executive Terry Harbort.

Talisker said the decline construction had been completed to the 3700 level, allowing access to planned stopes on three mine levels. Metallurgical test work has shown 96% average recovery and 65% free gold.

The company completed a US$31.25 million royalty financing in October 2023, which, together with its C$6 million cash position, gives the company C$43 million in available liquidity.

Bralorne hosts a January inferred resource of 1.63Moz grading 6.3gpt of gold. Definition drilling as part of a 14,949m programme in 81 holes, which began at Bralorne in October 2023, has returned highlights, including 9.55m grading 14.31gpt gold.

Shares in Talisker Resources are trading at 30c, valuing the company at C$26 million.