The funding will go towards the construction of a decline tunnel for underground drilling to build more geological confidence in the existing gold resource and determine whether a decision to mine at Blackwater is feasible.

The decline tunnel development and underground drilling program is estimated to cost approximately $50 million and Tasman is presently working on other funding sources to complete this work phase which is a prerequisite to accessing the PGF funding.

Tasman acquired the project from OceanaGold Corporation last year, with OceanaGold agreeing to support the early stages of project development with US$5 million in seed funding.

Tasman isn't required to pay OceanaGold for the acquisition until a decision to mine.

The Blackwater project has a resource of 700,000 ounces at 23 grams per tonne gold.

A 2014 preliminary economic assessment by OceanaGold suggested 570,000oz of gold could be recovered over 10 years at a rate of 50,000-60,000ozpa at all-in sustaining costs of $635/oz and development costs of $76 million.

Some 700,000oz was recovered from the workings between 1908-51 at an average grade of 16gpt gold. 

Tasman is run by mining engineer and former Evolution Mining chief operating officer Mark Le Messurier.

Evolution director Jim Askew is an advisor to Tasman.

Tasman will consider a listing in the next 1-3 years.