Talisker Resources' 2024 Journey from Exploration to Production Readiness

Throughout 2024, Talisker Resources Ltd. (TSX:TSK) demonstrated significant progress in its transition from exploration to production at its flagship Bralorne Gold Project in British Columbia. The company completed its resource conversion drilling program with consistently high-grade gold intercepts, constructed the Mustang Mine decline, and secured multiple strategic agreements for ore processing and transportation. Talisker also strengthened its financial position through a series of funding arrangements totaling approximately $22.6 million, positioning the company to become Western Canada's next gold producer amidst historically high gold prices.

Operational Developments

Resource Conversion Drilling Program

Talisker's resource conversion drilling program, initiated in October 2023, delivered exceptional results throughout 2024. The program, designed to increase confidence in the Alhambra, BK, and BK-9870 veins, completed 81 drill holes totaling 14,949 meters by February 15, 2024. Notable high-grade gold intercepts included:

• 80.68 g/t Au over 2.20 meters within a broader interval of 28.58 g/t over 6.35 meters (January 22)
• 86.50 g/t Au over 1.50 meters within a broader interval of 14.31 g/t over 9.55 meters (February 6)
• 129.99 g/t Au over 2.00 meters on the BK Vein (March 4)
• 97.40 g/t Au over 2.00 meters within a broader intercept of 38.17 g/t Au over 5.20 meters (April 2)
• 56.88 g/t Au over 1.00 meter (April 17)

These consistent high-grade results demonstrated grade continuity within the veins and strengthened confidence in the first five years of the Mustang Mine plan. The program also showed consistent mineralization in the hanging wall and footwall breccias, which is expected to lower overall dilution during mining operations.

Mine Development

A critical milestone in Talisker's progress toward production was the February 12 announcement of the completion of the Mustang Mine decline to the 3700 level. The 4 by 4 meter development over 400 meters allows for simultaneous access to planned stopes on the 3700, 3800, and 3900 levels, with additional development completed to prepare for extension to lower stopes at the 3600 and 3500 levels.

As Terry Harbort, President and CEO, stated at the time:

"With the haulage pathways to surface now complete we are focused on the planning and preparation for in-stope development."

Strategic Agreements

Talisker secured several crucial agreements to advance its path to production:

1. Ore Purchase Agreement with New Gold Inc. (March 12): This agreement enables New Gold to purchase up to 350,000 tonnes of material mined at Bralorne for processing at their New Afton mill.
2. Milling Agreement with Nicola Mining Inc. (April 9): Talisker arranged for Nicola to process up to 6,300 tonnes of stockpiled material from Bralorne at Nicola's Craigmont Mill in Merritt, British Columbia.
3. Ore Hauling Agreement (May 13): Through its subsidiary Bralorne Gold Mines Ltd., Talisker signed an agreement with Stromsten Enterprises in partnership with Bridge River Management Corporation to transport material from the Mustang Mine. This agreement provided for direct participation of Bridge River Management, a wholly owned economic development corporation of the Bridge River Indian Band (Xwisten). Steve Hughes, CEO of Bridge River Management LP, commented: "By having Xwisten people drive the trucks for ore hauling, this initiative not only supports capacity building within the community but also creates a pathway for future opportunities and sustainable development."

Ladner Gold Project Developments

While focus remained on Bralorne, Talisker also reported promising results from its summer 2023 mapping and surface sampling campaign at the Ladner Gold Project on April 15. Of the 175 rock samples collected, 78.3% were anomalous for gold, with the top result producing 97.70 g/t Au from composite samples of sheeted quartz veins in aphanitic andesite.

Terry Harbort noted:

"We are very pleased with these preliminary results from Ladner and the demonstrated consistency of gold grades across a broad area. Our sampling indicates there are additional mineralized zones in the same setting as the Caroline mine, along strike, yet to be fully explored."

Additionally, on April 4, Talisker announced a Letter of Intent with Regeneration Enterprises Inc. to form a joint venture to process the Ladner Gold Project Tailings Resource. This resource contains a National Instrument 43-101 compliant tailings indicated resource of 445,000 tonnes grading at 1.64 g/t for 24,000 oz of gold and an inferred resource of 93,000 tonnes grading at 1.64 g/t for 5,000 oz of gold. The proposed JV aims to extract minerals while supporting site restoration.

Corporate Developments

On August 22, Talisker sold 12 claims covering 23,550 hectares contiguous with Westhaven Gold Corp.'s Shovelnose gold property. The transaction, which received TSX Venture Exchange approval on September 6, involved payment of $20,000 in cash, issuance of 1,500,000 common shares of Westhaven to Talisker, and granting of a 1% Net Smelter Royalty (NSR) on the claims with an option for Westhaven to buy back the NSR for $1,000,000.

This strategic divestment allowed Talisker to monetize non-core assets while maintaining upside exposure through share ownership and royalty interests, enabling greater focus on bringing Bralorne into production.

Financial Developments

Talisker bolstered its financial position through several funding arrangements throughout 2024:

1. Private Placement (July-September): The company completed a non-brokered private placement totaling $2,520,200 through two tranches. The offering consisted of 6,300,500 units at $0.40 per unit, with each unit comprising one common share and one-half of one common share purchase warrant.
2. Comprehensive Financing Package (October-November): Talisker secured a financing package totaling approximately $22.6 million, consisting of:
   
   • US$11,750,000 from the second closing of a previously announced royalty agreement with Sprott Private Resource Streaming and Royalty Corp.
   • A $4,000,000 convertible debenture from the Phoenix Gold Fund, bearing interest at 12% per annum with a three-year term and conversion price of $0.50 per share.
   • A $1,332,000 gold-linked note financing, with notes bearing interest at 15% per annum and maturing on December 31, 2027.
   • An additional $1,100,000 convertible debenture with the Spartan MM Fund announced in November, bearing interest at 12% per annum with a conversion price of $0.56 per share.
3. Amended Royalty Agreement with Sprott (September): As part of the second draw, Talisker renegotiated certain terms with Sprott, including extending the buyback right timeframe and pushing back the quarterly production target of 17,500 ounces to the quarters ending March 31, 2028, and June 30, 2028.

CEO Terry Harbort emphasized the significance of these financing arrangements:

"The closure of this financing package places Talisker in a solid financial position as we transition into mining at the Bralorne Gold Project. This transition is a culmination of over five years of dedication and hard work from the Talisker team including 165,000m of drilling, discovery of over 50 additional veins and development of what we believe is a robust mine plan."

Future Outlook

As Talisker transitions from explorer to producer, the company appears well-positioned to capitalize on the current strong gold price environment. With infrastructure in place, processing agreements secured, and financing completed, Talisker is poised to commence production at the Bralorne Gold Project.

The high-grade nature of the resource, combined with consistent mineralization in hanging wall and footwall breccias, suggests potential for robust economics. The historical Bralorne Gold Project had a mined average of 17.7 g/t during its 40-plus years of historical production, and recent drilling results indicate the potential for similar high-grade performance.

Looking ahead, Talisker will likely focus on:

1. Commencing and ramping up production at the Mustang Mine
2. Continuing exploration to expand resources at Bralorne
3. Further advancing the Ladner Gold Project once Bralorne is in steady production

With Western Canada's historical gold mining district experiencing a revival and gold prices at historic highs, Talisker's transition to producer status represents a significant milestone for the company and its shareholders after years of exploration and development work.

The completion of key infrastructure, strategic agreements, and financing arrangements throughout 2024 has set the stage for what could be a transformative period for Talisker Resources as it works to establish itself as Western Canada's newest gold producer.

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