Talisman Mining has expanded the shallow gold footprint at its Sheepyard Prospect in New South Wales and is preparing RC drilling to test an untested anomaly at depth. The company has also raised about A$4 million, although part of the funding and director participation still require shareholder approval.
- Shallow gold mineralisation now spans an unconstrained 800-metre strike at Sheepyard
- RC drilling is planned from November to test the main IP chargeability anomaly
- A$4 million placement priced at A$0.065 a share, with A$0.945 million pending approval
- East Peak Hill’s 2,500-metre aircore program is due to produce first results in early December
- Cash stood at A$4.761 million after A$1.277 million of net operating outflows during the quarter
Sheepyard Drilling Builds an 800-Metre Gold Footprint
Talisman Mining Limited (ASX:TLM) is putting fresh capital behind its most advanced exploration story after further aircore drilling at the Sheepyard Prospect outlined broad, shallow gold mineralisation across an unconstrained strike of about 800 metres. The results sit near the margins of an induced polarisation chargeability anomaly whose main body has not yet been drilled.
The strongest reported interval was 9 metres at 0.94 grams per tonne gold from 42 metres, including 6 metres at 1.28 grams per tonne, in hole SYAC0085. Hole SYAC0088 returned 15 metres at 0.55 grams per tonne from 3 metres and a further 15 metres at 0.46 grams per tonne from 30 metres. These are exploration intersections, not a mineral resource or an indication of economic viability, but they give Talisman a defined target for the next phase of work. The latest results build on the earlier Sheepyard drilling, which had already outlined shallow mineralisation over the same approximate strike length.
November RC Program Will Test the Depth Target
Talisman plans to begin follow-up reverse-circulation drilling in November. The stated objective is to expand the mineralised footprint and provide a more definitive test of the deeper IP chargeability anomaly. Sheepyard forms the southern end of a north-west trending soil anomaly extending about 5.5 kilometres and carrying more than 25 parts per billion gold.
That sequence matters because the current drilling has tested only part of a much larger geochemical and geophysical target. The next campaign therefore carries more geological information value than another set of isolated shallow intersections: it is intended to establish whether the anomaly persists at depth and across a wider area. The filing does not provide a resource estimate, drilling budget or target date for a resource definition.
A$4 Million Placement Adds Exploration Capacity
The funding plan gives Talisman room to pursue that work. The company secured commitments for about A$4 million at A$0.065 a share, with A$3.1 million issued in the first tranche through 47 million new shares. A second tranche of approximately A$0.945 million remains subject to shareholder approval at the 25 November annual general meeting.
Directors have committed to subscribe for about A$870,000, including Chairman and largest shareholder Kerry Harmanis, whose proposed participation is approximately A$780,000. That participation also requires shareholder approval. Talisman says the funds will support exploration across its existing portfolio, new project evaluation and business development, as well as working capital and transaction costs. The placement was covered in earlier A$4 million placement funding, but the quarterly report now places that raise alongside the drilling programs and the company’s updated cash position.
East Peak Hill Adds a Second Near-Term Drill Test
Sheepyard is not the only active target. A 2,500-metre aircore program began after quarter-end at Talisman’s East Peak Hill Gold Prospect, part of the Macquarie Projects in New South Wales. The program is testing two target areas along a roughly 5-kilometre gold-mineralised corridor, including extensions to the north and south of the EPH1 target and systematic traverses across EPH2.
The drilling is scheduled for completion by the end of October, with first results expected in early December. Previous attempts at EPH2 were disrupted by significant rain events, while earlier drilling at EPH1 identified strongly anomalous gold near an interpreted structural jog. Those results remain targets for follow-up rather than a defined deposit.
Royalty Income Is Falling as Cash Funds Exploration
Talisman ended September with A$4.761 million in cash after receiving A$157,000 in Wonmunna iron ore royalties during the quarter. The company says mining at the Mineral Resources-operated project ceased in February, leaving only low-grade stockpiles to be processed; royalty receipts would resume if production recommenced. That makes the royalty a useful historical funding source but a less dependable near-term cash stream.
Quarterly net cash used in operating activities was A$1.277 million, including A$718,000 of exploration and evaluation expenditure, A$487,000 in administration and corporate costs, and A$257,000 in staff costs. Based on the Appendix 5B calculation, the reported cash balance represented about 3.7 quarters of funding at the quarter’s relevant outflow rate, before considering how the planned drilling and the pending placement tranche may change future cash use. The leadership reset, which saw Todd Ross become Managing Director and Mark Cossom join as a non-executive director, now places execution of that exploration program at the centre of Talisman’s next phase.
Bottom Line?
The next meaningful test is not another shallow intersection but whether November RC drilling confirms continuity around Sheepyard’s untested IP anomaly without accelerating cash use faster than the placement replenishes it.
Questions in the middle?
- Will RC drilling demonstrate gold mineralisation beneath the margins of Sheepyard’s IP chargeability anomaly?
- Will shareholders approve the A$0.945 million second placement tranche and the proposed A$870,000 director participation?
- Can East Peak Hill produce a second exploration success before Wonmunna royalty income becomes immaterial?