The underground mining contractor, Byrnecut Australia, continues to make good progress at the Monty development of Sandfire Resources and Talisman Mining. As at the end of December 2017, the decline had advanced to 346 m which was ahead of schedule compared to the corresponding feasibility study budget of 286 m. Total development advance (including the decline) was 550 m compared to corresponding feasibility study budget of 440 m. First ore production remains on schedule for early Q4 CY 2018. Highlights:Bulk earthworks and civils substantially completed under budget, surface infrastructure progressing on time and under budgetRealised and forecast savings in pre-production capital of A$8 million (100% basis) resulting in an estimated A$2.4 million reduction in Talisman’s share of pre-production capitalJoint Venture budget approved for period ending 30 June 2018 and forecast to 31 December 2018First drawdown of $8 million from the $20 million PFF with Taurus Mining Finance Fund covered Talisman’s share of development expenditure to 31 December 2017Second drawdown of $3.5 million for period 1 January 2018 to 31 March 2018 receivedCarried forward tax losses as at 30 June 2017 of A$44 million are anticipated to be fully available for offset against forecast Monty life-of-mine profits.The Monty copper-gold deposit in Western Australia forms part of Talisman and Sandfire’s Springfield project in which Talisman holds a 30% interest. Monty is located approximately 900 km north of Perth and 10 km east of Sandfire’s DeGrussa copper-gold mine within the highly prospective Bryah Basin in the Gascoyne Region of Western Australia.Monty is one of the highest grade copper-gold discoveries made globally in recent decades. The proximity of the deposit to Sandfire’s DeGrussa plant provides an expedited and low risk pathway to production with an extremely low development capital intensity compared to other greenfield copper discoveries globally. The Ore Sales Agreement between Talisman and Sandfire for the sale of Talismans share of ore from Monty to Sandfire provides Talisman with appropriate cost sharing whilst removing exposure to processing and marketing risk underpinning the highly attractive forecast financial returns for Monty.The Monty feasibility study details forecast total production of 74,400 t of contained copper (plus 38,400 oz contained gold and 413,400 oz contained silver) over an initial ore production life of 30 months.