New Talisman Gold Mines Limited's announcement of the gold finds in the Karangahake Gorge has resulted in the company share value increasing nearly $20 million over the last year.

The company value is now more than $30 million, says managing director Matthew Hill.

'Essentially local investors who bought $NZ1000 worth of shares 12 months ago could sell them for $NZ3000 today,” says Matthew.

'Many investors are from the area we are operating in, and as they are often related to miners over the last 100 years at Karangahake, they know the rich seams of gold which still remain.”

From a returns perspective a shareholder buying in last year's rights issue at .5 cents has today the ability to sell at $AU1.5 cents on ASX or $NZ1.4 cents on NZX.

The July 12 announcement of the Dubbo Deeps Resource Estimate resulted in significant international interest in the company, together with resurgent local interest from smaller kiwi investors wishing to be part of the development of this mine, says Matthew.

Resource modelling of the Dubbo Zone has resulted in Measured, Indicated, and Inferred resources increasing to 312,800 oz gold equivalent (Au Eq) at a grade of 21.98g/t Au Eq – an increase of 102 per cent over the 2004 resource estimate of 140,600 oz gold and 445,800 oz Ag for this zone (154,690 oz Au Eq).

The grades established of up to 146.2grams per tonne for an average of 21.98g/t places the deposit as one of the highest grade mineral resources in NZ and ranks in the top five worldwide, says Matthew.

'The dramatic increase in Dubbo resources ultimately proves our long held belief that there is significant remaining ore at depth. The data compilation and resource modelling has brought a much greater understanding of the mine and sets a very positive platform for long term mine development at Talisman.”

The portal entrance structure which will form part of the ventilation airlock.

Gold equivalents have been used as the historic data is expressed in bullion values. These have been converted to gold equivalents based on the gold price during the main historic mining period to 1919 where the gold price was a constant £4.25 or USD20.47. All more recent exploration data has been converted to gold equivalents at the same metal prices for consistency of resource estimation and reporting. The gold/silver ratio in the orebody averages approximately 1:4.

'This is an awesome opportunity for NZ mineral investments to take such a great project to the world stage,” says Matthew.

'While it has taken over two decades to be an overnight success, we are very proud of the work which has been accomplished in such a short space of time. The development of this national treasure, which historically employed thousands of people before slowing down due to a world war, is once again well on its way to production.

'We are delighted at the support by most of the local community. As they say, ‘Grade is King', and the Talisman mine, which is up there in the world's highest grade gold deposits, is well set on its pathway towards to becoming a world-class mine.”

Site works on the 0.4ha portal flat at the surface of the mine are complete and the site has been once again closed off and secured as it has been for over 26 years.

Refurbishments of old sets underground are progressing well and are ahead on time and budget. It is expected these works will be complete by end of September.

Future work will be mainly done underground and once strengthening and widening of sets is complete there will be room to allow a small underground loader to traverse all areas of the mine being targeted for prospecting and future small-scale mining and bulk sampling.

They are currently taking five kg samples from the areas of old stopes and workings, which are being sent to SGS for lab testing.

Completed portal support upgrades near the mine entrance.