Talon Metals shares up on drill results at Tamarack

Talon Metals team in front of the Core Shed at the Tamarack Project in Minnesota.-(Credit: Talon Metals)

Talon Metals (TSX:TLO) reported on Tuesday that a drill hole intersected 21.73 meters (71.2 feet) of mixed massive sulphide mineralization, starting at 459.72 meters at its Tamarack nickel-copper-cobalt project in Minnesota.

The drill hole sets a new record at the project, as it represents the longest intersection of mixed massive sulphides at Tamarack.

“This new drill hole is in an area that to date, has been largely underexplored.  The hole will likely have the meaningful impact of extending our western high-grade Massive Sulphide Unit (MSU),” Brian Goldner, Talon Metals head of exploration said in a media statement.

The company reported earlier this month that drillhole 20TK0273 intersected 8.39 metres grading 8.15% nickel, 3.01% copper, 0.19% cobalt, 0.54 gram palladium per tonne, 0.62 gram platinum per tonne, and 0.17 gram gold per tonne (9.83% nickel equivalent or 26.1% copper equivalent) starting from 414.73 metres.

The company has two drill rigs turning at the project and a third rig is on its way

The company has two drill rigs turning at the project and a third rig is on its way.

The project contains indicated resources of 3.6 million tonnes grading 1.83% nickel, 0.99% copper, 0.05% cobalt, 0.42 gram platinum per tonne, 0.26 gram palladium per tonne, and 0.2 gram gold per tonne (2.45% nickel equivalent). Inferred resources add 4.4 million tonnes grading 1.58% nickel, 0.92% copper, 0.04% cobalt, 0.29 gram platinum, 0.18 gram palladium, and 0.16 gram gold (2.11% nickel equivalent).   

This year Talon plans to start a prefeasibility study on the project. An updated preliminary economic assessment in March 2020 envisioned an underground mine producing 4.9 million tonnes of processed ore over eight years at all-in sustaining costs of $3.57 per lb. of nickel concentrate.

The early stage study estimated initial capex of $83.33 million and an after-tax payback of 2.5 years. The PEA, which used a nickel concentrate price of $2.67 per lb., forecast an after-tax net present value of $291 million, at a 7% discount rate, and an internal rate of return of 36%.

Midday Tuesday, Talon’s stock was up nearly 9% on the TSE. The company has a C$363 million market capitalization.

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