TALON METALS ANNOUNCES A 48% INCREASE IN MINERAL RESOURCES AT THE TRAIRÃO IRON PROJECT, BRAZIL
ROAD TOWN, Tortola, British Virgin Islands, June 29, 2011 /CNW/ --
Talon also reports additional drilling results on Target Area 2, Trairão
ROAD TOWN, Tortola, British Virgin Islands, June 29, 2011 /CNW/ - Talon
Metals Corp. ('Talon' or the 'Company') (TSX: TLO) is pleased to
announce an increase of 48% in the inferred mineral resource estimate
at its 100% owned Trairão Iron Project (the 'Trairão Project'), located
in Pará State, Brazil. This increase is based on the results from the
drilling of an additional 26 reverse circulation ('RC') drill holes
over 5,000 metres of strike on the north western extension of Target
Area 2 (see Figure 1).
Talon's independent technical consultants, Coffey Mining Ltd.
('Coffey'), have reported a National Instrument 43-101 ('NI 43-101')
compliant total inferred mineral resource estimate for the Trairão Project of
approximately 688 million tonnes ('Mt') at an average grade of approximately 37% Fe (at a 25% Fe
cut-off). This mineral resource estimate is within an area with a
cumulative strike length of 10,400 metres over Target Areas 1 and 2.
The iron mineralization within this resource includes surficial
deposits, saprolite and saprock, which overlie the Archean age banded
iron formations ('BIFs') on the Trairão ridge.
This updated inferred mineral resource estimate for Target Area 2
represents an increase of approximately 223 Mt, at an average grade of approximately 32% Fe (at a 25% Fe cut-off).
Effectively, this doubles the tonnage of the mineral resource estimate
which was first reported for only the eastern part of Target Area 2 on
March 22, 2011 (and is described in the technical report referred to
below). The total mineral resource estimate for all of Target Area 2,
including both the north western and eastern parts, is now
approximately 450 Mt at an average grade of approximately 36% Fe (at a
25% Fe cut-off). The effective date of this updated estimate is June
28, 2011.
'We are aggressively advancing the Trairão Iron Project, as illustrated
by today's announcement of our third NI 43-101 compliant mineral
resource estimate in just nine months,' said Eddie Scholtz, President
and CEO of Talon. 'We see great potential for this iron deposit, in
part, as it has the advantage of relatively easy mining options as a
surface deposit. Other important components of the work program are
also being progressed including beneficiation, infrastructure,
marketing and logistics studies as well as a conceptual mining study.'
The updated mineral resource estimate for Target Area 2 is based on the
results of an additional 26 RC holes (2,368 metres of drilling),
drilled between February and April 2011. These holes were drilled to a
depth of between 60 and 130 metres metres over a strike length of 5,000
metres, in an area that is between 200 metres and 550 metres wide. The
drilling was conducted on a grid where lines were spaced between 200
and 400 metres apart and the holes were drilled 200 metres apart along
the grid lines. All the drill holes intersected iron mineralization in
saprolite and saprock, as well as the high-grade surficial deposits
(eluvium and colluvium deposits) capping the the Trairão ridge.
The updated approximate cumulative inferred mineral resource estimate
for Target Areas 1 and 2 of the Trairão Project is as follows:
______________________________________________________
| | |25% Fe cut-off |35% Fe cut-off |
|_____________|________|_______________|_______________|
| |Strike |Million |Grade |Million |Grade |
| |(metres)| Tonnes | % Fe | Tonnes| % Fe |
|_____________|________|________|______|________|______|
|Target Area 1| 2,400 | 238 | 39 | 168 | 42 |
|_____________|________|________|______|________|______|
|Target Area 2| 8,000 | 450 | 36 | 219 | 43 |
|_____________|________|________|______|________|______|
| Total | 10,400 | 688 | 37 | 387 | 43 |
|_____________|________|________|______|________|______|
The mineral resource estimate for the north western extension of Target
Area 2 is in line with expectations and makes a significant
contribution to the mineral resource of the large iron deposit on the
Trairão ridge. Although this area has an extensive strike of 5
kilometres along the Trairão ridge, it is narrower and the surficial
and saprolite deposits are less well developed than on the eastern part
of Target Area 2. Hence, this area was expected to have less high grade
mineralization, in comparison with Target Area 1 and the eastern part
of Target Area 2.
Additional drilling results on Target Area 2
The results of the last 7 RC holes drilled as part of the 26 hole
drilling program in the north western part of Target Area 2 have been
received. These holes were drilled on the grid configuration as set out
above, and the results from these 7 holes have been incorporated into
the mineral resource estimate reported here.
Table 1 - 7 Drill Hole Intersections from the NW part of Target Area 2,
Trairão
Hole ID E.O.H.* (m) From To Interval** Grade***
(m) (m) (m) (% Fe)
TRC-0113(>) 85.00 0.00 85.00 85.00(#) 35.75
(including) 0.00 36.00 36.00 48.05
TRC-0114(>) 101.00 0.00 101.00 101.00(#) 32.06
(including) 0.00 36.00 36.00 49.12
TRC-0115(>) 115.00 0.00 115.00 115.00(#) 25.09
(including) 0.00 14.00 14.00 43.09
TRC-0116(>) 87.00 0.00 87.00 87.00(#) 34.66
(including) 0.00 9.00 9.00 50.18
TRC-0119(>) 106.00 0.00 106.00 106.00(#) 30.27
(including) 0.00 22.00 22.00 49.46
TRC-0120(>) 118.00 0.00 118.00 118.00(#) 29.55
(including) 0.00 24.00 24.00 42.38
TRC-0121(>) 73.00 0.00 56.00 56.00 39.56
(including) 0.00 18.00 18.00 48.42
Notes:
(*) E.O.H. means 'End of the hole'
(**) intervals do not represent the true widths
(***) Fe grade are uncut
((#)) Mineralization open at depth
((>)) Inclined drill hole (60 degrees dip)
The prefix TRC on the Hole_ID column indicates RC drill holes. All
drill holes reported in this release were drilled towards AZ220° at
60°.
Trairão Drilling Update and Outlook
Currently Talon has two RC rigs and three diamond drill rigs on site at
the Trairão Project, and a further five diamond drill rigs are due to
begin drilling in July 2011. The RC rigs have completed the drilling of
the 7,800 metre long Target Area 3 and complete results are pending. It
is anticipated that an inferred mineral resource estimate for Target
Area 3 will be undertaken during July, which will complete the initial
cumulative inferred resource estimate for the entire priority area on
the Trairão ridge, which includes Target Areas 1, 2 and 3 (see Figure
1).
In addition, RC drilling has been completed and assay results are
pending on Target Areas 4, 5 and 6 which have a cumulative mapped
strike length on three parallel BIF units of 6,200 metres. The RC rigs
are currently drilling on the less topographically prominent northern
target areas (7-13) which have a cumulative strike length of some 23
kilometres, as delineated by recent geological mapping.
The diamond drill rigs are currently drilling on Target Area 1. The
diamond drilling program is intended to upgrade the mineral resource
estimates from the inferred category to the indicated category on the
priority areas of Target Areas 1 and 2. An initial 'indicated' mineral
resource estimate for Target Area 1 is expected to be completed during
the fourth quarter of this year.
Work on logistics, infrastructure, marketing and environmental aspects
of a scoping study is underway. Sampling is being undertaken for
preliminary metallurgical testwork following completion of the mineral
characterisation study, and preliminary beneficiation tests to produce
a marketable concentrate grade are also in progress. In addition, a
conceptual mining study has been started.
To view Figure 1: Trairão Project - Exploration Summary, June 2011 please visit: http://files.newswire.ca/882/Figure_1_June_29_2011.pdf
Conference Call
Talon will host a conference call with Mr. Eddie Scholtz, President and
CEO, to discuss this news release on Wednesday June 29, 2011 at
1:00p.m. Eastern Time.
To participate in the conference call, investors and media from the US
and Canada should dial 1-888-231-8191 prior to the scheduled start
time. International callers should dial 1 (647) 427-7450.
To hear a replay of the conference call dial 1-800-642-1687 (toll free
in Canada and the US) and 1-416-849-0833 (international callers), and
input password 79934903. The replay will be available approximately two
hours after the conference call ends.
Talon will offer an archived webcast of the conference call, accessible
from the Company's web site at www.talonmetals.com.
Qualified Persons, Quality Assurance, Quality Control and Methodology
Talon's exploration programs are being managed by Talon's VP
Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM) and Talon's
Mining Engineer, Mr. Ricardo Álvares de Campos Cordeiro (MAIG), both of
whom are 'Qualified Persons' within the meaning of NI 43-101.
The 'Qualified Person', as such term is defined in NI 43-101, who
prepared the mineral resource estimates and other technical information
presented in this news release is Mr. Bernardo Horta de Cerqueira
Viana, who is a geologist, independent of Talon and an employee of
Coffey. Mr. Viana is a member of the Australian Institute of
Geoscientists ('AIG'). Mr. Viana is responsible for the technical
information in this news release and has verified the data disclosed in
this news release (including sampling, analytical and test data
underlying the technical information, and the inferred mineral resource
estimates disclosed herein). In Coffey's opinion the updated mineral
resource estimate disclosed herein is compliant with NI 43-101.
Coffey compiled a NI 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, a copy of
which is available under Talon's SEDAR profile at www.sedar.com.
All drilling samples have been prepared and analyzed by SGS-Geosol
Laboratórios Ltda ('SGS') which is ISO14001:2004 and ISO 9001:2008
accredited and is independent of Talon. Sample preparation was
conducted at SGS Parauapebas preparation facility whereas analyses were
performed at the SGS laboratory based in Belo Horizonte, Brazil. The
samples were analyzed by fusion with lithium tetraborate-XRF for SiO(2), Al(2)O(3), CaO, Fe(2)O(3), K(2)O, MgO, TiO(2), P, Mn and Cr(2)O(3) and retained moisture (LOI) by multi-temperature.
QA/QC procedures include the submission by Talon of systematic
duplicates, blanks and standard samples within every sample batch
submitted to SGS. In addition, SGS inserts its own standards, blanks
and duplicate samples. The results from these control samples indicate
acceptable consistency of analysis.
About the Trairão Project
The 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 iron ore deposits. The Trairão Project
comprises eight exploration licences and four applications for
exploration licences, for a total area of 76,523 hectares (189,092
acres). The primary protore iron mineralization in the project area is
magnetite-rich BIFs. The BIFs are associated with positive magnetic
anomalies and locally are overlain by extensive supergene enriched
hematite deposits in surficial and saprolite zones. Thirteen discreet
target areas with iron deposits have been delineated within the licence
area.
About Talon
Talon is a TSX-listed company focused on the exploration and development
of its 100% owned 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 CDN$33 million and holds 500,000
common shares in Lago Dourado Minerals Ltd. (TSXV:LDM). Talon also
holds 19 million shares in Tlou Energy Limited and 25.6 million shares
in Rio Verde Minerals, both unlisted companies.
Talon has 91.7 million common shares outstanding and 107.6 million
shares on a fully diluted basis.
Forward-Looking Information
This news release contains certain 'forward-looking statements'. 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 are forward looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to the Company. Such forward-looking statements include,
among other things, statements relating to the Trairão Project with
respect to estimates in respect of mineral resource quantities, mineral
resource qualities, the potential scope of the mineralized area, the
preparation of a further updated NI 43-101 compliant mineral resource
estimate and the timing associated therewith, the potential for
upgrading the mineral resource estimate for Target Areas 1 and 2, the
Company's receipt of certain assay and drilling results and the timing
associated therewith, targets, goals, objectives and plans (including
the Company's drilling-exploration plans and plans regarding scoping
and mining studies). Forward-looking statements are subject to
significant risks and uncertainties and other factors that could cause
the actual results to differ materially from those discussed in the
forward-looking statements, 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, but are not limited to: failure to
establish estimated mineral resources, the grade, quality and recovery
of mineral resources varying from estimates, 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 and/or deeper
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 drilling and exploration results and other
geological data and other factors (including exploration, development
and operating risks). Any forward-looking statement speaks only as of
the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, 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
statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty therein.
The mineral resource figures disclosed in this news release are
estimates and no assurances can be given that the indicated levels of
iron will be produced. Such estimates are expressions 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 estimates disclosed in this
news release are 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
estimates are inaccurate or are 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/June2011/29/c2059.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