Resource World Magazine

F E B R U A R Y / M A R C H 2 0 2 0 www.resourceworld.com 19 Talisker Resources acquires historic Bralorne gold mine by Ellsworth Dickson L ocated near the Town of Gold Bridge about 160 km north of Vancouver, southwest British Columbia, the Bralorne Project was recently acquired via Talisker Resources Ltd. [TSK-CSE; TSKFF- OTCQB] acquiring Bralorne Gold Mines Ltd., a wholly-owned subsidiary of Avino Silver & Gold Mines Ltd. [ASM-TSX, NYSE American; GV6- FSE]. Terms of acquisition are $8.7 million cash, 12.6 million Talisker shares (9.9%) and a cash payment of US $2.5 million on commercial production and no royalty. In a parallel $7.5 million funding arrangement, Osisko Gold Royalties Ltd. [OR-TSX, NYSE] is Talisker's funding partner. Both the Talisker and Osisko arrangements include rights to participate in future financings. In connection with the acquisition, Talisker will complete a non-brokered pri- vate placement of up to 22,222,222 shares at price of 18 cents per share for gross pro- ceeds of up to $4.0-million and will sell to Osisko Gold Royalties a 1.2% net smelter returns royalty on all minerals produced from the project in exchange for $6.2-mil- lion in cash. Closing is subject to various approvals. Talisker has received commitments for $4 million of private placement proceeds from strategic investors, including Eric Sprott, and commitments for $1,115,020 from certain insiders of the company. The company also agreed with the syn- dicate of underwriters led by PI Financial Corp. to increase the size of a bought deal private placement for total proceeds of 13.2 million, While hard rock gold was known to exist in the region since 1858, the year of the BC gold rush, those old timers were seeking placer gold and never knew about the incredible amount of gold at depth. Intermittent production from the Bralorne Project totals approximately 4.2 million ounces grading 17.7 g/t gold from 30 veins in three adjacent underground mines com- prising the Pioneer, Bralorne and King. Despite 30 veins mined via 80 km of tunneling on 44 levels, the property is nowhere near being mined out. In a NI 43-101 compliant Technical Report, the 4,200+ hectare property has a histori- cal measured resource estimate of 41,600 tonnes of 12.43 g/t gold, for 16,642 ounces, 206,113 tonnes of 11.30 g/t, for 74,885 ounces indicated, giving a total of 247,773 tonnes of 11.46 g/t, for 91,527 ounces. Inferred resources are 329,786 tonnes of 7.91 g/t, for 83,900 ounces of gold. In addi- tion, all veins remain open at depth and most along strike and 33 other veins have been identified. Geologists have a high confidence in structural and grade continuity from drift samples and limited drilling. For example, historic mining averaged 75,000 ounces for each panel at Bralorne and 40,000 ounces at Pioneer. More than 1,300 metres of high- grade continuity has been demonstrated for the 77 vein which is still open and over 900 metres of high-grade continuity has been demonstrated for other veins. Talisker has planned a five-phase drill- ing program as outlined below: Phase 1 – Shallow along strike at Bralorne Additional targets along strike at Pioneer and King Phase 2 – Drill to 500 metres directly down-plunge below Phase 1 Phase 3 – Drill to 500 metres below Phase 2 Phase 4 – Extensions of lower grade close to surface veins Phase 5 – Exploration of under-explored outcropping vein systems The 4,200-hectare Bralorne Project has an active mining, tailings and water discharge permit, a scalable water treat- ment plant and direct power grid access. Excellent relationships have been established with Indigenous and local communities. Thanks to the native gold in quartz veins, there is no acid mine drainage. "The acquisition of the Bralorne gold camp is a compelling and transformational transaction for Talisker," said Dr. Terry Harbort, President and CEO who added, "With more than 60 veins identified, many open along strike and at depth, and with demonstrated high-grade continuity from historic sampling, Bralorne represents an excellent opportunity to add significant ounces for Talisker." The company is also the major land hold- ers in the emerging Spences Bridge Gold Belt (SBGB) that trends to the southeast from Bralorne. From the northwest to southeast, its properties include the Remington, Lola and most of the SBGB itself. Talisker has entered into a definitive royalty purchase agreement and royalty agreement with its wholly-owned sub- sidiary, Bralorne Gold Mines Ltd., and Osisko Gold Royalties Ltd. for the sale of a 1.2% net smelter returns royalty on all production from the Bralorne gold proj- ect. Bralorne has received proceeds in the amount of $6.2-million. n The Bralorne Project located near the Town of Goldbridge in the small community of Bralorne, southwest British Columbia. Source: Avino Silver & Gold Mines Ltd. MINING

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