Talisker signs B.C. gold processing deal with Nicola Mining
Talisker Resources Ltd. [TSX-TSK, TSKFF-OTCQB] has announced that through its 100%-owned subsidiary Bralorne Gold Mines Ltd., it has signed a milling agreement with Nicola Mining Inc. [NIM-TSXV]. As part of the agreement, Nicola will process up to 6,300 tonnes of stockpiled material mined from Talisker’s Bralorne Gold Project in British Columbia. That material will be processed at Nicola’s Craigmont mill, which is located in Merritt, B.C.
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.
Under the agreement, Talisker may transport material to the Nicola mill site. Nicola has described the mill as a unique $30 million plus milling and processing facility constructed on free hold industrial-zoned land owned 100% by the company. Nicola has said it is in a strong position as it prepares to start milling operations and is finalizing its 2024 exploration program at the historic Craigmont Copper Mine, which lies adjacent to Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) Highland Valley Copper, Canada’s largest copper mine.
“This agreement with Nicola gives Talisker increased flexibility and contingency for our upcoming ore processing from the Mustang Mine at Bralorne,’’ said Talisker President and CEO Terry Harbort.
On Tuesday, Talisker shares eased down 1.75% or $0.01 to 56 cents. The shares are currently trading in a 52-week range of 62 cents and $0.065. Nicola shares were also lower, easing 5.2% or $0.015 to 27.5 cents. The shares trade in a 52-week range of 44 cents and 17 cents.
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 signed a 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.
“Having completed the portal and decline construction and resource conversion drilling, this agreement clears the pathway for our planned 2024 production at Bralorne,’’ Harbort said.