Talisker completes first gold sale from B.C. mine
Talisker Resources Ltd. [TSX-TSK, TSKFF-OTCQB] has announced the successful completion of the first gold sale from its 100%-owned Bralorne Gold Project in British Columbia. The company said it sold 707 ounces of gold in August, generating gross proceeds of US$2.3 million. The company said the sale highlights Talisker’s successful implementation of the company’s offsite milling strategy with its milling partner Nicola Mining Inc. [NIM-TSXV].
Talisker shares advanced on the news, rising 5.9% or $0.05 to 89 cents. The shares previously traded in a 52-week range of 85 cents and 30 cents.
Under an agreement announced in April, 2024, Nicola will process up to 6,300 tonnes of stockpiled material mined from the Bralorne project. That material will be processed at Nicola’s Craigmont mill, which is located in Merritt, B.C., and where Nicola plans to increase its milling capacity to accommodate increased throughput. Nicola said it would like to clarify that its plan to extract a 10,000-tonne bulk sample from its Dominion Creek project in B.C. will not displace the milling partnership with Talisker.
Talisker said the gold sale marks a key milestone for the company and the proceeds from the initial sale will be reinvested in ongoing underground development, resource conversion and infrastructure upgrades at Bralorne. The company said these investments ae key to Talisker’s goal of gradually and cost-effectively increasing production capacity. The company said it also remains committed to its broader exploration program at Bralorne, seeking additional high-grade zones that could extend the mine’s lifespan and enhance project economics.
“As the company moves toward commercial production, further gold sales are expected regularly, helping to strengthen finances,” the company said.
Talisker’s flagship asset is the high-grade, fully permitted Bralorne Gold Project where the company is currently transitioning into underground production at the Mustang Mine.
The Bralorne mine complex was one of the highest-grade and longest producing gold mines in British Columbia. It operated for over 50 years. The complex consisted of three mines – Bralorne, Pioneer, and King – which produced 4.2 million ounces of gold at an average recovered grade of 17.7 g/t.
Production ceased in 1971 due to the low gold price at the time.
Bralorne is estimated to contain an indicated resource of 33,000 ounces of gold, and an inferred resource of 1.6 million ounces.
Talisker recently announced that through its 100%-owned subsidiary Bralorne Gold Mines Ltd., it has signed an ore purchase agreement with New Gold Inc. (NGD-TSX, NYSE American). As part of the agreement, New Gold will purchase up to 350,000 tonnes of material mined at Bralorne. That material will be processed at New Gold’s New Afton mine in British Columbia.
The agreement can be extended by mutual agreement by New Gold and Talisker.
Talisker’s other key asset is an 85% interest in the Spences Bridge Gold Belt and several other early-stage greenfield projects. The Spences Bridge asset covers 203,029 hectares in southern British Columbia.