Newly minted gold producer Talisker Resources (TSX:TSK), market capitalization C$233.41 million, signed a binding term sheet for a seven-year ore purchase agreement with Ocean Partners UK for up to 1,500 tons per day (tpd).
The deal includes a US$25 million revolving credit facility to develop the Bralorne gold project in British Columbia and its producing Mustang mine.
According to Thursday’s news release, Talisker and Ocean Partners intend to reach a definitive agreement by January 2026.
The Bralorne gold project
The partnership follows two months of successful gold production at Bralorne, including 707 ounces in August and 862 ounces in September, with the company actively expanding capacity to 500 tpd by 2026, with eyes on 1,000 tpd by 2028, while converting resources through diamond drilling.
Bralorne’s current resource is estimated at 1.7 million ounces using a base case of only US$1,650 per ounce. At the price of US$4,015 per ounce on October 30, this represents more than US$6.8 billion in the ground, a figure positioned to trend higher driven by rising geopolitical tension spearheaded by the ongoing US government shutdown.
Talisker leadership believes Bralorne holds more than 5 million ounces in untapped upside, supported by a wealth of historic assays spanning 7 historical mines and 47 known mineral occurrences, granting the project what leadership sees as a clear pathway to producing more than 100,000 ounces of gold per year.
Talisker’s long-term growth runway
Looking further ahead, Talisker’s 144-square-kilometre Ladner project to the south, housing an estimated 691,540 ounces inferred, is permitted and ready for prospecting across 5 historic mines and 24 gold occurrences of its own, which are characterized by more than 50,000 metres of drilling and metallurgical test work yielding gold recoveries of up to 94.5 per cent.
Besides Bralorne and Ladner, Talisker also owns 266,654 hectares in greenfield projects in BC containing more than 100 anomalies verified by extensive sampling, positioning the company as a first-mover on numerous district-scale land plays in emerging and frontier gold belts.
A gold stock to have your cake and eat it too
By demonstrating positive revenue to the market, with sales expected to rise in tandem with production, Talisker offers exposure to gold’s safe-haven properties by way of its income statements being inextricably tied to the spot price.
Concurrently, by exploring for more economical mineralization across its extensive land packages, the company holds the potential for operational leverage beyond fluctuations in the spot price.
In this way, Talisker’s value proposition for investors includes both capital protection and the potential for alpha unattainable by owning the yellow metal alone.
Management commentary
“These agreements will provide Talisker with the ability to increase our milling capacity to up to 1,500 tpd, securing our pathway to ramp up production and increase revenue as planned,” Terry Harbort, president and chief executive officer of Talisker Resources, said in a statement. “Upon signing of the definitive agreements, Talisker will be able to commence ore shipments to Ocean Partners immediately. The long-term partnership with Ocean Partners provides operational security to achieve our vision of becoming a significant Canadian gold producer.”
“Talisker will continue to process material at Nicola Mining’s Merrit facility for the remainder of the current 12-month agreement, which expires in May 2026,” Harbort added. “We thank Nicola for their support in the early phases of our production and we wish them success as they make their transition to processing their own ore from the Dominion Creek bulk sample and incorporate run of mine material from their partnership with Blue Lagoon Resources.”
About Talisker Resources
Talisker is a gold producer and explorer active in British Columbia.
The gold stock (TSX:TSK) last traded at C$1.48 and has added 196 per cent year-over-year.
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