It's been a long time coming, but New Talisman Gold Mines, formerly Heritage Gold NZ, has finally hit paydirt.

The dual listed "penny dreadful" stock - which has for most of its nearly 30 years traded at around a cent or less - has concluded the first sale of precious metal in the company's history.

The stock last traded on the NZX at 1.4c, up from a year low of 0.5c, and making for a 55.5 per cent gain over the last 52 weeks.

Fifty tonnes of ore sent from the Talisman Mine, between Paeroa and Waihi, were analysed and found to contain 64.5 ounces of gold and 227.3 ounces of silver at a recovered grade of 42.56grams per tonne (g/t) and 150.01g/t respectively.


The sale was on commercial terms satisfactory to the company and will generate revenues of approximately $100,000, the company said.

"The sale represents another major milestone for the company on its journey from explorer to producer," New Talisman said.

As previously announced, the batch of 50 tonnes of ore delivered to the treatment facility was part of a residual stockpile of high grade ore stored on the hard stand area at the Talisman mine.

Smaller batches removed from the stockpile over the last 18 months were used to determine the metallurgical characteristics of the ore that will be produced from the Talisman mine in future and a preferred treatment process.

Samples taken from the stockpile for earlier laboratory analysis graded 1.5 oz of gold per tonne and 8 oz of silver per tonne. A further batch of stockpiled high grade ore will be prepared for treatment following analysis.

"This is the first production of commercial gold from the historical Talisman mine site in over 30 years and represents a significant milestone for the company," chief executive Matthew Hill said in a statement.

The stock is listed on both the Australian and New Zealand stock exchanges under the code NTL.

The company holds a mining permit and an exploration permit over the Talisman Gold project in the Hauraki Gold Field.


It holds shares in Broken Hill Prospecting Limited which is planning to develop its cobalt project near Broken Hill in Australia.

Coromandel Gold Limited, its wholly owned subsidiary has an exploration permit for gold near Waihi and an exploration permit application for gold and base metals in Northland.

The company's original focus, as Heritage Gold, was to acquire prime gold areas in the Coromandel region - the heartland of the New Zealand gold industry.

As New Talisman, the company's current focus is on the development of the historic Talisman Mine located between Paeroa and Waihi.

The historic Talisman mine was the second largest historic gold producer in New Zealand, giving up 1 million oz of gold and 3 million oz of silver.