Impact: Positive
Talisker announced that it has signed a milling agreement with Nicola Mining Ltd. (TSXV:NIM, Not Rated), through its 100%-owned subsidiary, Bralorne Gold Mines Ltd. Nicola will process up to 6,300t of stockpile mined at the Bralorne Au project and process it at Nicola’s Craigmont mill located in Merritt, British Columbia. The press release did not provide any terms for the agreement. In our opinion, this is a positive development for Talisker. The agreement serves as another vote of confidence in the 1.7M oz Au Bralorne project, which hosts a high-grade past-producing mine complex, is fully permitted, and located within trucking distance of multiple mills (read initiation report). With the recently completed portal and decline at the Mustang mine at Bralorne (read notable), Talisker is on track to achieve initial production in 2024. The mine is expected to produce at ~11 g/t Au, with a target of >100k oz Au pa when fully ramped up. Test production trucking of first ore a is planned to begin in Q2/24. Additional assays from a 15,000m resource conversion program are pending as well.
