JOHANNESBURG (miningweekly.com) – ASX-listed Talisman Mining on Tuesday said it would expand its landholding in the prospective Lachlan fold belt of New South Wales through a farm-in agreement with private company Bacchus Resources and a purchase agreement with ASX-listed Kidman Resources.

Under the agreements, Talisman may earn up to an 80% interest in Bacchus’ gold and base metal projects and will acquire a 100% interest in the Kidman copper/gold projects.

Bacchus’ primary focus is the exploration and potential development of the Wollwonga gold project in the Pine Creek Orogeny of the Northern Territory.

Both projects are complementary and contiguous with Talisman’s existing 100%-owned New South Wales exploration tenements and the previously announced Peel Mining joint venture (JV), where Talisman is earning up to a 75% interest.

The agreements marked an important further step in Talisman’s project generation programme, which identified the Gilmore Suture of the Lachlan fold belt as an underexplored, highly-mineralised region with an opportunity to secure a large-scale land package for a relatively low cost.

Talisman’s combined tenement package now represents a significant strategic landholding covering a strike length of about 160 km along the Gilmore Suture, which hosts the high-grade Mt Boppy, Bobadah and Mineral Hill gold, copper and base metal mines.

Under the Bacchus agreement, Talisman could earn up to an 80% interest in six granted exploration licences covering an area of 1 067 km² through expenditure of $2.3-million over a four-year period.

Talisman would also undertake a staged farm-in with the company spending $1.3-million in the first 36 months to earn a 51% interest. Should Talisman elect to continue, it would spend a further $1-million over 12 months to earn an 80% interest.

Once Talisman has earned its final interest in the licences, a formal JV will be entered into which provides that Bacchus will be free carried for 10% of its JV interest until a decision to mine.

After a decision to mine, Bacchus can then elect to contribute or Talisman has a right to acquire Bacchus’ interest in the JV for 95% of fair value as agreed by the JV participants.

Talisman would also transfer to Bacchus a 20% interest in the three granted exploration licences that it currently holds on a 100% basis, which would form part of the formal JV, with Bacchus contributing to expenditure.

Meanwhile, Talisman has entered into an agreement to purchase a 100% interest in the Crowl Creek project from Kidman for $250 000, payable upon formal renewal, transfer and registration of the tenements from Kidman to Talisman by the New South Wales Department of Industry Division of Resources and Energy.

Crowl Creek comprises six granted exploration licences covering an area of 278 km², which are adjacent to, and west of, the Mineral Hill polymetallic mine.

Crowl Creek covers the same stratigraphic sequence and a parallel structure to the Mineral Hill deposit host structure and is highly prospective for low-sulphidation epithermal and orogenic precious and base-metals mineralisation.

Talisman MD Dan Madden said securing control of these two projects consolidated Talisman’s position in the area and provided an exciting new front for gold and base metal exploration activities.

“Talisman has secured its large 2 360 km² position for minimal upfront cost and near-term capital commitment. The focus of expenditure on the New South Wales projects will be into the ground, with on-ground activities starting early this year and our first drill programme anticipated late in the March quarter.“