Talisman Mining : High-Priority Targets for Major New Drilling Push in NSW

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26 July 2022

High-Priority Targets Identified in NSW by

Geophysical Survey Ahead of Major New Drilling Push

Exciting new targets defined by first-mover geophysical surveys, supplemented by

encouraging assay results from recent drilling

Highlights

• Processing and interpretation of the landmark FALCON airborne gravity gradiometry (AGG) survey flown this year over the Lachlan Copper-Gold Project in NSW now completed by
  Talisman's geophysical consultants.
• Processing and interpretation of the extensive VTEM Max airborne electro-magnetic (AEM) survey flown concurrently with the AGG survey by Talisman's geophysical consultants in progress, with preliminary interpretation by Talisman geological staff completed.
• Three high-priority AEM and 10 high-priority AGG targets defined to date so far from a first-pass interpretation of the high-quality dataset - further targets expected to be identified in the coming weeks from ongoing interpretation of both datasets.
• Assays returned for recent Reverse Circulation (RC) drill programs at Carpina North outline wide intervals of gold mineralisation, confirming the gold-in-soils target. Assays include 40m @ 0.51g/t Au from 24m down-hole in hole CNRC0012.
• Complete assays returned for the RC drill program at Kaolin Shaft confirm presence of polymetallic base & precious metal mineralisation, including 2m @ 1.42 g/t Au and 2.5g/t Ag from 16m down-hole, 2m @ 0.67% Pb, 2.28% Zn and 5.1g/t Ag from 92m down-hole and 4m @ 0.50% Pb, 1.41% Zn and 2.5g/t Ag from 106m down-hole in KSRC0012.
• Further ground-based work underway at both targets including preparations for a major new drilling campaign, scheduled to commence this quarter (weather and access permitting).

Talisman Mining Ltd (ASX: TLM, Talisman) is pleased to advise that it has identified a number of high-priority exploration targets within its 100%-ownedLachlan Copper-GoldProject in NSW, after receiving preliminary results from the interpretation of data from the project-wide geophysical surveys completed earlier this year.

Initial testing of the targets will begin in the latter half of this year as part of a major new program of drilling scheduled to commence this quarter, weather and access permitting. This follows delays to the Company's drilling schedule due to the very high levels of rainfall which have been experienced across Australia's Eastern Seaboard this year.

The completion of the AGG geophysical survey processing and interpretation by Talisman's geophysical consultants, Southern Geoscience, marks a key milestone for the Company.

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The geophysical surveys, which were completed in the first half of the year, comprised a VTEM Max airborne-electromagnetic survey of 6,285-line kilometres over four key target areas, and a FALCON AGG survey of 15,456-line kilometres over three major structural lineaments within Talisman's tenure portfolio.

Interpretation of these two airborne geophysical datasets, together with Talisman's review of prospectivity vectors developed from a close study of other economic deposits in the Cobar Superbasin, has highlighted 13 high-priority targets which will be followed up through systematic exploration work, including drill testing, over the next six months.

Chair and Management Comment

Talisman's Chairman, Kerry Harmanis commented: "We have experienced a number of frustrating delays this year due to a combination of heavy rainfall on the East Coast, which has restricted drilling access, and ongoing bottlenecks at the assay laboratories.

"Despite this, we have been able to progress our major regional geophysical surveys which have already identified more than a dozen high-quality targets. This reinforces the quality of our NSW portfolio and the enormous opportunity we see in front of us to make a company-changing discovery.

"We are now gearing up to resume a major new drilling push in the current quarter, weather permitting, with drilling to continue for the foreseeable future. Thanks to the ongoing income stream from our iron ore royalty, the Company is in a very sound position financially and remains exceptionally well placed for success. The next few months should be an exciting time for Talisman shareholders."

Talisman's CEO, Shaun Vokes, said: "The results coming out of the recently completed regional scale geophysical surveys are very exciting and rapidly advancing our understanding of mineral systems in this complex, structurally controlled region. We have always considered that the Cobar Basin is highly prospective and, as we progress exploration, I strongly believe that the next major mineral discovery in this area will come from a mineral system concealed under cover. I therefore believe that our significant investment in these geophysical surveys will bear significant fruit as exploration advances.

"The analysis of the vast amounts of data obtained from these surveys takes time, and I appreciate that news-flow during this period can be limited. However, the Talisman team is working exceptionally hard and applying a methodical and systematic approach, in combination with the latest science, to our exploration activities to ensure that our shareholders' funds are spent efficiently and with the greatest chance of achieving exploration success."

FALCON AGG Targets

Talisman's review of prospectivity vectors1 indicated that all known mineral deposits have a significant gravity anomaly associated with economic mineralisation and surrounding alteration halos.

The emplacement of sulphide mineralisation and associated higher-density silica alteration into relatively lower-density sedimentary packages making up the basement rocks through the Cobar

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region is believed to result in identifiable gravity anomalies, indicating the presence of concealed mineral systems - even below thick cover.

Additionally, since mineralisation in the Cobar Superbasin is generally known to be highly structurally controlled, the acquisition of AGG data assists greatly in interpreting regional and prospect-scale structures and the timing of structures relative to regional mineralisation events.

Interpretation of the AGG survey data by Talisman and its geophysical consultants has identified over 50 gravity anomalies which indicate that density of bedrock features under cover is not consistent with previously interpreted geology, and that there may be additional complexity or mass introduced to the bedrock in that location associated with mineralised systems.

Of these gravity anomalies, 10 areas have been identified as high priority (refer Figure 1) due to a significant and as yet unexplained gravity response coincident with other prospective features (magnetic anomaly or geochemical anomaly).

Follow-up of these targets has commenced with field personnel conducting mapping and regolith sampling over the high-priority target areas. Where this work confirms the potential for mineral anomalism and/or mineralising vectors, drill testing will be progressed as quickly as possible.

VTEM Max AEM Targets

Airborne electromagnetic surveys have been definitive in identifying conductive anomalies associated with economic massive sulphide mineralisation in the Cobar Superbasin. Talisman's AEM survey areas were targeted on areas identified by Dr Jon Hronsky's review of Talisman's tenure portfolio2 as most likely to host similar base metal dominant massive sulphide mineralisation.

A preliminary review of late-time channel profile data from the survey has identified three distinct conductive anomalies (refer Figure 1) thought to be associated with conductive bodies in basement rocks.

These distinct anomalies have both been identified in areas with nearby mineral occurrences on EL8658 and EL8414, highlighting the potential prospectivity of Talisman's Central Lachlan Project. An in-depth review of this data to generate further targets is currently being undertaken by Talisman's geophysical consultants, Southern Geoscience, and further targets are expected to be announced shortly.

The three high-priority conductive anomalies identified in the preliminary review will be modelled into Maxwell plate models where possible, allowing Talisman to target drilling based on the most certain interpretation of the conductive anomaly. Talisman's field geology team will shortly conduct geological mapping and regolith sampling over these targets to further constrain drill-ready targets.

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Reverse Circulation Drilling Results

Talisman has now received final assays from all RC drill-holes completed earlier in the year on the Carpina North, Murray's Mine and Kaolin Shaft Gold Prospects. One assay batch remains outstanding at the Babinda Copper Prospect. Extended assay turnaround times were experienced due to nationwide backlogs at commercial assay laboratories.

Carpina North Gold Prospect (EL8571: TLM 100%)

A total of 1,899m was drilled at Carpina North (Figure 2 and Table 1) and significant pervasive gold mineralisation was encountered through many drill-holes, confirming the interpretation of the previously reported gold-in-soil anomaly3 as being related to a concealed epithermal gold system.

Talisman's geologists have interpreted the fine-grained silica hosting pyrite and arsenopyrite associated with gold mineralisation as analogous to silica capping and alteration zones in the upper portions of a low-sulfidation epithermal gold system, similar to the Mount Boppy gold mine located further north along the eastern margin of the Cobar Basin (refer Appendix 1).

Significant drill results at the Carpina North Gold Prospect (Table 2) include:

• CNRC0001
  o 4m @ 0.42 g/t Au from 22m down-hole
• CNRC0002
  o 2m @ 0.42g/t Au from 26m down-hole; and
  o 2m @ 0.83g/t Au from 100m down-hole;and o 2m @ 0.57g/t Au from 122m down-hole;and o 2m @ 0.41g/t Au from 140m down-hole
• CNRC0003
  o 4m @ 0.26g/t Au down-hole from surface; and o 6m @ 0.57g/t Au from 12m down-hole
• CNRC0005
  o 4m @ 0.60g/t Au from 20m down-hole;and o 2m @ 0.35g/t Au from 34m down-hole
• CNRC0006
  o 26m @ 0.47g/t Au from 10m down-hole
• CNRC0007
  o 2m @ 0.57g/t Au from 10m down-hole
• CNRC0008
  o 8m @ 0.47g/t Au from 30m down-hole
• CNRC0009
  o 4m @ 0.32g/t Au from 84m down-hole; and o 6m @ 0.28g/t Au from 92m down-hole