TLM - Talisman Mining

[finicky]

Forgot about this one during the March crash. At 6c share price TLM got down well below cash backing in March.

TLM returned 15c per share of capital to shareholders plus a 6.4c special dividend in fy19. This benefit followed the sale of the Monty Cu/Au project to Sandfire Resources (SFR). Subsequently also sold the Sinclair Nickel Project 11 Oct 2019 to Saracen (SAR) for $10m and a royalty.

Six months ago the M.D was saying they still had ~$17m cash so guessing they'd still have that minus a mill or two. Market cap today if it closes up 1c @ 0.097c would be about $18m.

I am freshly attracted by the Lucknow NSW gold mine farm-in (up to 70% earn in). Sounds like they think there could be deeper down plunge sources to the old mineralisation in the mine plus there could be a faulted offset lode somewhere as historic mining stopped at a 'contact' with barren different rock. From 26 Aug 2019 release:

"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"

Commenting on the Lucknow Project, Talisman Managing Director Dan Madden said:

“There have been numerous recent examples in Australia of exciting new gold discoveries being made by using modern exploration techniques to target depth extensions in known goldfields.
Lucknow is one of the world’s highest-grade gold mining areas with reported mined gold grades in excess of 100 g/t, so the potential value of any new areas of mineralisation that can be identified is clear"
.
Disc: long held
Might add, just now thinking about it but plan has been to increase cash not spend it.
Some volume coming in and daily chart trending

1 Yr Dly

 

[finicky]

Talisman Mining (TLM) last price @ 11.0c up 12%, good volume.
Running gap that might well get filled before drilling news, so it's a wait for 10c or lower imoo.

Lucknow Gold Project

Following Wuhan Virus lockdown delays Talisman has scheduled the first diamond drill to happen in June. They will be drilling into an interpreted continuation of bonanza lode that has been offset below the historic workings by ancient shearing that occurred after a horizontal fault - picture better than words:

And this is what they're after, ozs to the tonne

 

[finicky]

TLM up another cent so far today, not showing yet on this weekly chart. Up 1.5c yesterday. The fickle money wanting a ticket for the June diamond drill into the interpreted faulted offset zone beneath the fabled 19th century Lucknow workings. Multi-bagger or smashed on the dd result imo. Would have bought more in normal times.

TLM Wkly

 

[finicky]

TLM @ 16.5c

Just when I would have liked the price to dip or stall it goes up 10% on the day before the July stock picking comp starts.

Yes so supposedly the diamond drillling at Lucknow has begun but the company hasn't actually notified us of this via an ASX announcement, so guessing.

Here is the diagram again showing their theory and what they're after. In some awesome geological epoch the mineralised body has been split in two by a horizontal fault and then the upper and lower units have sheared apart. The old miners got down to the horizontal fault and couldn't contact the bottom unit of the lode as it had shifted east. That's what I think they're saying anyway - its that orange oblique striped block in the picture.

Big bucks if they are right and hit ore like in the second picture, share price halved if they don't.

 

[finicky]

TLM @ a miserable 16c

This has got to be an improvement - the 18% major shareholder, Kerry Harmanis has taken the chairmanship from a guy who holds only 2,500,000 freebie options as well as 400,000 shares that probably derive from options or 'performance' anyway, not his own money. Commitment plus replaces commitment nil.
Someone with acumen writing elsewhere has remarked that Talisman (TLM) has the markings of a lifestyle company with low director holdings except for option freebies and long tenure of said directors.

 

[finicky]

Diamond hole drill #1 was a dud or an 'information rich' result depending on your glass half full or half empty temperament. Diamond hole #2 has commenced and should complete in August.

I'll have to cheat and screenshot a page of the announcement because the geological explanation of an emerging more complicated model are now beyond my visualizing capability - I have tried. They think there's a 'cross-cutting fault' now which has changed the picture of where the 'lost lode' might be. Still searching for the 'contact' of the ultra-mafic and andesite rock types which it seems is key to locating the missing lode.

This will be a binary result for me in the August comp - either right up at the top of the ladder or down near the bottom. For the company though, if Lucknow is a bust, they will still have the progressed Lachlan Fold tenements. Additionally, at end of June they had $13m of cash - assuming they'll have spent $2m of that after diamond hole #2, they'll have almost 6c per share cash left.

Chart-wise I am guessing might get to 12c again before next Lucknow drill results and if that's a dud down to 8-9c?
Held

 

[finicky]

Got bored so added 10,000 more TLM @ 13.5c today. Gives me a nice round amount of 50,000 shares - a sophisticated approach borne of almost two decades of investing. Now looking at the chart as a low volume wedgie like correction awaiting second drill result at Lucknow; target of 9c if the drill result is 'information rich' and doesn't contact visible gold. The spike down day, July 24, was Lucknow's first drill result.
My August comp pick

TLM 6 Months

 

[finicky]

Diamond hole #2 assays received. Nothing. Another informational hole attended by increasingly complicated gobbledegook from a geologist about his hobby.
"The hole returned low grade gold mineralisation in the interpreted target zone (0.86m at 0.26g/t Au from 370.14m).

 

[Miner]

Diamond hole #2 assays received. Nothing. Another informational hole attended by increasingly complicated gobbledegook from a geologist about his hobby.
"The hole returned low grade gold mineralisation in the interpreted target zone (0.86m at 0.26g/t Au from 370.14m).

@finicky Interesting correlation I have to make now:

1. You get bored so you buy some throwaway money to buy TLM at 13.5 cents. Twiggy would be envious of you for sure
2. Your end line says " If I talk positively on any stock it comes with the caveat that I expect a second and deeper market crash soon. I have been liquidating shares and any buy will be a rare individual exception". So aligning with your EOM, the price of TLM crashed. So did you buy or sale immediately or just wanted excitement to have a loss on TLM just to prove your proverbial EOM ??
3. I can add one line on your EOM - when I buy to go for short sale !!!

 

[finicky]

@Miner I'm getting a bit irrational lately, just today I bought some lottery tickets on top of the usual: mswalotteries.com.au
Yes, it was just a bit of excitement I was after, but there's still a little value left in the stock. TLM has about 6cps cash, the Lachlan Fold project and there's some talk they're on the hunt for a W.A gold project to buy off the shelf, so to speak.

 

[finicky]

Up an unexplained 22% so far today on firm volume and challenging the last two year high @19c.
Have retained all my shares but lost interest and attention after the Lucknow prospect fizzled.
More than one string to its bow though and still reasonably cashed up and looking for another project last I heard.

Lets not forget their past achievement - TLM returned 15c per share of capital to shareholders plus a 6.4c special dividend in fy19. This benefit followed the sale of the Monty Cu/Au project to Sandfire Resources (SFR). Subsequently also sold the Sinclair Nickel Project 11 Oct 2019 to Saracen (SAR) for $10m and a royalty.

Daily 6 Mths

 

[finicky]

Up another 20% before luncheon 0.245
Noone's interested so I'll just give my blurry impression of what's going on. Apparently TLM has a royalty over an iron ore lease. Mineral Resources (MIN) is starting to pay TLM for the lease quarterly. Production by MIN is ramping up and TLM is expecting revenue from this source to rapidly reach a significant amount compared to its market cap - i think someone said like $2M usd per Quarter after June at current Fe price? I didn't take any notice of this when it was announced a couple of weeks back - partly because i read that ownership of the lease is being legally challenged by Fortesque but market is betting that lease will stay in MIN's hands as it is continuing to invest into production on it.

Will be a very cashed up Au, Cu explorer if royalty comes in.

Daily

 

[finicky]

Went cold on TLM after the Lucknow duster but was meaning to update yesterday. Today the price is getting a boost, ^12%.

A cause for renewed interest is the company's big scale exploration revamp involving dual airborne gravity and electromag surveys over areas of its Lachlan Fold NSW tenements. They have been taking advice from an expert geology consultant about where to concentrate their efforts in fault controlled areas that are concealed by deep cover. Its the common theme recently where more modern techniques and knowledge are sniffing out what remains concealed in proven terranes where old-timers took their lead from outcropping mineralisation and then the next wave relied on soil sampling and blind drilling. The obvious stuff has been found and mined but probably bigger stuff is hiding.
They have appointed 3 new geos and have replaced the old lame lifestyle senior management who didn't ever buy shares in their own company. Un-ac-ceptable!

How they can do all this as a $32m market cap junior with low share issuance is what makes them exceptional - the regular monthly income from the gross royalty held over the Wonmunna iron ore mine now owned by Mineral Resources.

 

[finicky]

Added 10,000 @ 0.17 today. Not a bad lotto ticket with the the amped up exploration expenditure: airborne gravity and electromag surveys, engaged expert geo consultant for targeting, hired 3 new geos. And largely if not entirely paid for by an iron ore mining royalty from a major (MIN). Dec Quarterly coming up.
Also the weekly chart is in an uptrend, albeit laborious and overlapping.

Weekly

 

[Sean K]

Added 10,000 @ 0.17 today. Not a bad lotto ticket with the the amped up exploration expenditure: airborne gravity and electromag surveys, engaged expert geo consultant for targeting, hired 3 new geos. And largely if not entirely paid for by an iron ore mining royalty from a major (MIN). Dec Quarterly coming up.
Also the weekly chart is in an uptrend, albeit laborious and overlapping.

Weekly
View attachment 136248

Buying on a day like today is exactly what I'd expect from you. Now, I should definitely research it.

 

[finicky]

Up 8% 8ntraday on low volume but could be auspicious.

Dec Half Year reported which shows that they spent less on exploration and other outgoiings than received from the increasingly lucrative Mineral Resources (MIN) royalty.
H1 profit 1/4 million dollars after spending $1.2m on exploration.
Holding $10.2m cash/equivalents (pcp $$9.9m)
And this royalty exposure to revenue received by MIN on the tenement might double.

Plus they haven't given up on Lucknow and have a new theory as to where the displaced super grade Au remnant orebody might have got shifted to by complicated faulting.

From the Half Yearly Report:

"Royalties:

As previously announced to the ASX10, Talisman holds an uncapped 1% gross revenue royalty on the sale of iron ore (and other mineral and metals) from Mineral Resources Limited’s (ASX: MIN) (MRL) Wonmunna Iron Ore Mine (Wonmunna) located in the Pilbara region of Western Australia. Iron ore production commenced at Wonmunna in March 2021 and is currently operating at its designed production output of 5 million tonnes per annum (Mtpa).

Additionally, MRL has announced that it has received the required approvals to potentially expand Wonmunna’s production output up to 10Mtpa. During the reporting period Talisman received royalties from iron ore sales at Wonmunna totalling $2.7 million."

 

[finicky]

Kerry Harmanis, chairman and largest shareholder speaking - mostly about their Cobar basin prospects:
Talisman is a well funded junior with an eye on big copper-gold deposits in the Cobar

 

[finicky]

Jon Hronsky - Our conceptual prospect targeter:

Jon Hronsky OAM (BAppSci, PhD) - Western Mining Services

Jon has more than forty years of experience in the global mineral exploration industry, primarily focused on project generation, technical innovation and exploration strategy development. He has worked across a diverse range of commodities and geographies, and has particular expertise in...

www.wesminllc.com

OUR MISSION

We formed Western Mining Services (WMS) in 2005 and our mission has always been simple:

We Help Our Clients Achieve Mineral Exploration Success!

We deliver mineral discovery opportunities and sound advice that is grounded in our extensive experience and our keen understanding of exploration systems.

 

[finicky]

Chart's showing some faint life. Monthly Bollinger Bands are squeezing and price on a mild trend.
As said, these type of stocks have lost their flavour but this'd be the last one I'd ditch because of the active chairman with a major holding. Also steady iron ore royalties from from Mineral Resources funding exploration expenses. My average is 22c for 60k shares but they did a special dividend some time back.

They have announced a couple of green drilling prospects where they've zeroed in on anomalous conductors and chargeabilities from electro-mag and induced polarization surveys. Drilling in Q3. At least one prospect in Cobar Basin with nearby high grade old copper workings - anomaly is 200m down but workings stop at 90m (something like that - just a disinterested skim from me)

Long Held
Another lottery ticket

 

[finicky]

Well one of their prospects in the Lachlan gold/copper project has produced an intersection worth following up on. I was very vague in a previous post about the "special dividend" the company paid in the past: it actually returned 15c per share of capital to shareholders plus a 6.4c special dividend in fy19. This benefit followed the sale of the Monty Cu/Au project to Sandfire Resources (SFR). Subsequently also sold the Sinclair Nickel Project 11 Oct 2019 to Saracen (SAR) for $10m and a royalty. To quote myself.
Not meaning to promote this, just a flicker of interest for me in the long term chart lately and, while still a lottery ticket like them all, Talisman has a few distinguishing features - already mentioned.

Held
Not Adding