TALON METALS OUTLINES 2011-12 EXPLORATION PROGRAM FOR TRAIRÃO AND INAJÁ SOUTH IRON PROJECTS, BRAZIL
ROAD TOWN, Tortola, British Virgin Islands, May 3 /CNW/ --
Technical and management team expanded
TSX:TLO
ROAD TOWN, Tortola, British Virgin Islands, May 3 /CNW/ - Talon Metals
Corp. ('Talon' or the 'Company') (TSX: TLO) is pleased to provide an
overview of its proposed exploration program for the next 18 months to
September 2012 on its two iron ore projects in the Pará State of
Brazil. Talon's board of directors has approved expenditure in excess
of $20 million, of which most is allocated to the proposed work
programs at the Trairão Project ('Trairão') and to a lesser extent on
the Inajá South Project ('Inajá South'). At the Trairão project Talon
now has five drilling rigs operating. The Company has significantly
increased its management and technical capability to execute these
programs with the new appointments announced below.
'Talon's management has increased its minimum exploration target based
on the very positive results from drilling at Trairão to date, which
far exceed our original expectations,' said Mr. Stuart Comline,
President and CEO of Talon Metals. 'The new funds from the recent
equity financing will accelerate the exploration program and allow for
the commissioning of a prefeasibility study at Trairão.'
Since October 2010, Talon has undertaken a preliminary reverse
circulation ('RC') drilling program at Trairão that comprised 167 drill
holes (10,958 metres) over a cumulative 21 kilometres of strike over
Target Areas 1, 2 and 3 (See Figure 1). This includes the initial grid
drilling of a cumulative 5,400 metres of strike (53 drill holes and
2,554 metres) on parts of Target Areas 1 and 2 and resulted in the
delineation of a NI 43-101 compliant total inferred mineral resource
estimate of approximately 465 million tonnes at a grade of
approximately 39% Fe (using a 25% Fe cut-off), to depths of 50 metres
in these two areas. The balance of the RC drilling to date has been
done on the remaining 15.6 kilometres of Target Areas 1, 2, and 3, of
which the initial results of 17 drill holes on Target Area 3 were
reported in a news release dated April 6, 2011. The assay results on
the remaining RC samples from the outstanding drill holes that have
been completed will be reported as they are received. Thereafter, Talon
expects that the mineral resource estimate will be updated, if
warranted, once these results have been processed.
In addition, 15 diamond drill holes (1,962 metres) have been drilled and
various geological, geophysical and metallurgical studies and surveys
have been commissioned. To date, 13 discreet target areas with iron
mineralization have been delineated, which have a cumulative strike
length of some 50 kilometres and geological mapping is being undertaken
on Target Areas 4 through 13.
The proposed work program at Trairão includes:
-- Continuation and completion of the geological mapping and
ground based, detailed magnetic surveys on all 13 target areas,
which comprise banded iron formations ('BIF') that locally are
overlain by extensive lateritic (saprolite and saprock) iron
deposits and higher grade surficial deposits (including
colluvial and eluvial deposits).
-- The detailed mapping surveys will be supported by a regional
mapping survey and the interpretation of satellite imagery and
aeromagnetic data, as well as mineralogical and specialist
geological studies, focusing on the BIFs and lateritic iron
deposits.
-- The RC drilling program (an anticipated total of 11,000 metres
and about 130 holes) will continue throughout all 13 target
areas (See Figure.1). Initially the holes will be drilled on an
800 metre x 200 metre grid (to approximately 80 to 120 metres
depth) and subsequently drilling will be closed up to a 200
metre x 200 metre grid, and where warranted, inferred mineral
resources will be estimated, principally in the surficial and
lateritic deposits, within a depth range of approximately 100
metres of surface.
-- The anticipated diamond drilling program comprises some 38,000
metres in 230 drill holes. This program has commenced already,
with infill drilling underway on the priority areas of Target
Area 1, with an aim to increase the confidence levels of the
mineral resource estimates from the inferred category to
indicated and measured categories. Initially this will be
principally in the near surface lateritic and surficial
mineralization and will be followed by similar programs on
other priority areas on Target Areas 2 and 3, which have been
identified. Thereafter, any other such priority areas that may
be identified in the future on the remaining target areas will
also be diamond drilled for higher confidence categories of
mineral resource estimates. Diamond drilling is also expected
to assess the potential of the extensive BIFs at depth, below
the lateritic deposits, and delineate mineral resources in the
BIFs, where warranted.
-- An extensive chemical analysis and assay program which will
undertake routine whole rock analysis on all drill samples to
determine iron grades, with attendant routine QA/QC analysis
procedures. Also, selected samples will be subjected to
relative density determinations and various rock mechanic test
procedures.
-- Certain studies that are part of the proposed prefeasibility
study have been commissioned already, including preliminary
metallurgical testwork, infrastructure, transport and market
studies and environmental baseline and impact studies. These
studies will continue and numerous other aspects of the
prefeasibility study will commence in the coming months. The
prefeasibility study is expected to be completed within the
eighteen month period of the proposed work program at Trairão.
At the Inajá South Iron Project, preliminary mapping is underway and
provision has been made for a diamond drilling program (13 holes and
2,900 metres) to determine the nature of the predominantly BIF
mineralization and to drill to delineate inferred mineral resources, as
warranted. Provision is also made to undertake a scoping study as part
of the proposed work program at Inajá South.
New Management and Technical Appointments
Talon is pleased to announce the appointments of Ricardo A. C. Cordeiro,
Carlos Heron T. Dias, Maurício Prado, Marco Antonio S. Faria and Elton
Zimmermann to the management team. These new members of our management
team add a wealth of experience in exploration and mining in the iron
ore sector in Brazil.
Ricardo Álvares de Campos Cordeiro - Manager, Mining Engineering
Mr. Cordeiro has 32 years of mining related experience including service
with Vale's iron ore group in Brazil. His experience includes mineral
processing and project development, exploration project management,
economic and financial studies, resource definition and feasibility and
scoping studies. Mr. Cordeiro received a Bachelor of Mining Engineering
degree from Universidade Federal de Ouro Prêto and a Master of Science
degree in Mineral Engineering from Universidade de São Paulo. He is a
member of the Australian Institute of Geoscientists.
Carlos Heron Tavares Dias - Chief Geologist, Trairão Project
Mr. Heron is a geologist with 18 years of experience in the mining
industry, including service with Vale and Ferrous Resources in Brazil.
His experience includes mineral exploration of iron, gold, and base
metals in Brazil. Mr. Heron received a degree in geology from the
Universidade Federal do Pará. Prior to joining Talon he was an
independent consultant on various mineral projects.
Marco Antonio da Silva Faria - Chief Geologist, Inajá South Project
Mr. Faria is a geologist with 27 years of experience in the mining
industry, including service with Anglo American, Codelco, Gold Fields
and Eldorado Gold. Prior to joining Talon he worked for Codelco on the
Trairão project area undertaking exploration for Cu-Au-Iron deposits.
Mr. Faria holds a degree in geology from Universidade Federal de Ouro
Prêto.
Maurício Prado - Manager, Geostatistics
Mr. Prado is a geologist with 13 years of mining related experience
including major companies as Votorantim Metais, Vale and Paranapanema.
His experience includes projects for mineral resources of iron, base
metals and gold. In addition, Mauricio has experience in geological
controls of open-pit mines, and geometallurgy. and he holds a degree in
geology from Universidade Federal do Rio Grande do Sul and a Master of
Geochemistry degree from Universidade Federal do Rio Grande do Sul.
Elton João Zimmermann - Consultant
Mr. Zimmermann is a geologist with 34 years of experience, which has
primarily been focused in the exploration and mining sector,
specifically iron ore, gold and base metals projects. In recent years
he has specialized on work on the greenstone belts in Pará State, and
on iron ore projects, such as Big Mac. Prior to joining Talon, Mr.
Zimmermann worked as a consultant for Codelco do Brasil Mineração Ltda
on the Trairão Iron Project. He received a degree in geology from the
Universidade do Vale do Rio dos Sinos.
'We have been very fortunate to attract high quality professionals, with
extensive experience in Brazil and in the iron ore industry, who
recently have joined our much expanded team to augment the management
of this program,' said Mr. Stuart Comline, President and CEO of Talon
Metals.
Qualified Person
Talon's exploration programs are being managed by Talon's VP
Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is
qualified person within the meaning of National Instrument 43-101. Mr.
Ilidio de Brito, who is an employee of Talon, is responsible for the
technical material in this news release, other than with respect to the
inferred mineral resource estimates mentioned above.
The qualified person (within the meaning of National Instrument 43-101)
who prepared the inferred mineral resource estimates mentioned in this
news release is Mr. Bernardo Horta de Cerqueira Viana, who is a
geologist independent of Talon and an employee of Coffey Mining Ltd.
('Coffey'). Mr. Viana is a member of the Australian Institute of
Geoscientists ('AIG'). Coffey compiled a National Instrument 43-101
compliant technical report on Target Areas 1 and 2 of the Trairão Iron
Project entitled 'Second Independent Technical Report on Mineral
Resources' dated March 29, 2011.
About the Trairão Iron Project
Talon's 100% owned Trairão Iron Project is situated within the Serra da
Seringa Archean age greenstone belt, within the Carajás Mineral
Province in Brazil, which also hosts numerous other large iron ore
deposits. The Trairão Iron Project comprises eight exploration licences
and four applications for exploration licences, for a total area of
77,390 hectares (191,234 acres). The primary protore iron
mineralization in the project area is magnetite-rich BIFs. The BIFs are
associated with positive magnetic anomalies and are preserved in
thirteen discreet areas with a cumulative strike length of some 50
kilometres, which mostly form prominent ridges, locally capped by
preserved supergene enriched hematite deposits, which are developed in
surficial and saprolite zones.
To view Figure 1: Trairão Project - Location of Target Areas and Exploration Summary -
April 2011 please visit: http://files.newswire.ca/882/Fig_1_-_Talon_Metals.doc/
About Talon Metals
Talon Metals is a TSX-listed company focused on the exploration and
development of the Trairão Iron Project in Pará State, Brazil. The
Company has a well-qualified exploration and management team with
extensive experience in exploration and project management.
Talon has a treasury of approximately $34 million and holds strategic equity investments in a number of other
public and private companies including 500,000 common shares in Lago
Dourado Minerals Ltd. (TSXV: LDM). Talon also holds approximately 19.2
million shares in Tlou Energy Limited and 25.6 million shares in Rio
Verde, both of which are unlisted companies. Talon has 91,547,037
common shares outstanding and 105,546,189 shares on a fully diluted
basis.
Forward - Looking Information
This news release contains forward-looking information. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding potential mineralization, potential
updated and/or additional mineral resource estimates, the timing and
plans for the Company's exploration and work programs, the proposed
scoping study for Inajá South and the proposed prefeasibility study for
Trairão and the expected timing for completion of same) are
forward-looking information. This forward-looking information reflects
the current expectations or beliefs of the Company based on information
currently available to the Company. Forward-looking information is
subject to a number of risks and uncertainties that may cause the
actual results of the Company to differ materially from those discussed
in the forward-looking information, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things, risks related to
the exploration stage of the Company's properties, the possibility that
future exploration results will not be consistent with the Company's
expectations (including identifying additional mineralization), changes
in the price of iron ore, changes in equity markets, political
developments in Brazil, uncertainties relating to the availability and
costs of financing needed in the future, changes to regulations
affecting the Company's activities, delays in obtaining or failures to
obtain required regulatory approvals, the uncertainties involved in
interpreting exploration results and other geological data and the
other risks involved in the mineral exploration business.
Forward-looking information speaks only as of the date on which it is
provided and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking information, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein.
The mineral resource figure disclosed in this news release is an
estimate and no assurances can be given that the indicated level of
iron will be produced. Such estimate is an expression of judgment based
on knowledge, mining experience, analysis of drilling results and
industry practices. Valid estimates made at a given time may
significantly change when new information becomes available. While the
Company believes that the mineral resource estimate disclosed in this
news release is well established, by their nature mineral resource
estimates are imprecise and depend, to a certain extent, upon
statistical inferences which may ultimately prove unreliable. If such
estimate is inaccurate or is reduced in the future, this could have a
material adverse impact on the Company.
Mineral resources are not mineral reserves and do not have demonstrated
economic viability. Inferred mineral resources are estimated on limited
information not sufficient to verify geological and grade continuity or
to allow technical and economic parameters to be applied. Inferred
mineral resources are too speculative geologically to have economic
considerations applied to them to enable them to be categorized as
mineral reserves. There is no certainty that mineral resources can be
upgraded to mineral reserves through continued exploration.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/03/c8767.html
For additional information on Talon please visit the Company's website at www.talonmetals.com or contact:
Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com