Talon Metals' Inferred Mineral Resource Estimate Exceeds 1 Billion Tonnes at the Trairão Iron Project, Brazil
ROAD TOWN, Tortola, British Virgin Islands, Aug. 4, 2011 /CNW/ --
60% Increase in Inferred Mineral Resources at Trairão Project
TSX:TLO
ROAD TOWN, Tortola, British Virgin Islands, Aug. 4, 2011 /CNW/ - Talon
Metals Corp. ('Talon' or the 'Company') (TSX: TLO) is pleased to
announce that the cumulative inferred mineral resource estimate now
exceeds 1 billion tonnes, following the receipt of the initial mineral
resource estimate for Target Area 3 at its 100% owned Trairão Iron
Project ('Trairão Project'), located in Pará State, Brazil.
The National Instrument 43-101 ('NI 43-101') compliant inferred mineral
resource estimate ('Resource') for Target Area 3 is estimated at
approximately 414 million tonnes at an average grade of approximately
33% Fe (25% Fe cut-off). The addition of the Resource on Target Area 3
represents an increase of approximately 60% on the cumulative Resource
previously reported on Target Areas 1 and 2. The cumulative Resource
for these three target areas is approximately 1.102 billion tonnes at
an average grade of approximately 36% Fe, with a cut-off of 25% Fe (see
Table 1 and Figure 1). The effective date of this updated Resource is
August 3, 2011.
Table 1: Inferred mineral resource estimate for the Trairão Iron Project
__________________________________________________________________
| | | 25% Fe cut-off | 35% Fe cut-off |
|_____________|________|_____________________|_____________________|
| |Strike |Million Tonnes|Grade |Million Tonnes|Grade |
| |(metres)| | % Fe | | % Fe |
|_____________|________|______________|______|______________|______|
|Target Area 1| 2,400 | 238 | 39 | 168 | 42 |
|_____________|________|______________|______|______________|______|
|Target Area 2| 8,000 | 450 | 36 | 219 | 43 |
|_____________|________|______________|______|______________|______|
|Target Area 3| 7,800 | 414 | 33 | 133 | 42 |
|_____________|________|______________|______|______________|______|
| Total | 18,200 | 1,102 | 36 | 520 | 42 |
|_____________|________|______________|______|______________|______|
'Reaching our initial strategic threshold of one billion tonnes is a key
milestone in advancing our flagship Trairão Iron Project,' said Eddie
Scholtz, President and CEO of Talon. 'This project has continued to
exceed our expectations and we are aggressively moving forward towards
completing a preliminary economic assessment this year, and a
prefeasibility study next year.'
The NI 43-101 compliant inferred mineral resource estimate for Target
Area 3 was carried out by Talon's independent technical consultants,
Coffey Consultoria e Serviços Ltda., a branch of Coffey International
in Brazil ('Coffey'), based on the results of 73 reverse circulation
('RC') drill holes (4,710 metres of drilling), drilled between January
and April 2011. As reported in Talon's news release of July 25, 2011,
these RC holes were drilled to depths down to 112 metres over a strike
length of 7,800 metres of Target Area 3. This area represents the
eastern and north eastern strike extensions of Target Area 2 and Target
Area 1 respectively, and together the three target areas represent the
priority target of the Trairão ridge.
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. Drilling results, combined with surface mapping and
regional airborne magnetic survey data, indicate that the Banded Iron
Formation ('BIF') in Target Area 3 comprises two individual parallel
units: a Southern unit and a Northern unit, which individually are
between 200 and 500 metres wide and together, inclusive of the
surficial deposit between the two parallel BIF units, form a
mineralized target which is up to 1,000 metres wide at its widest
point. Similar to Target Areas 1 and 2, the iron mineralization
intersected on Target Area 3 is contained with the weathered zone in
saprolite and saprock, as well as in surficial deposits (eluvium and
colluvium deposits) that cap the main Trairão ridge. The iron potential
on the fresh rock was not tested in this drilling program.
Talon plans to file a third NI 43-101 compliant technical report on the
results of the Trairão Project next week. This report will include the
mineral resource estimate reported for Target Area 3, as well as the
mineral resource estimate announced on June 29, 2011 for Target Area 2.
Geological Mapping and Scout Drilling
The preliminary geological mapping program covering all of the 13 iron
target areas on the Trairão licence area has been completed, and scout
drilling has been undertaken on many of the target areas in the north
part of the licence area. Drilling results indicate that similar
targets to those on Target Areas 1, 2 and 3, are located over a
cumulative strike length of 4.0 kilometres on Target Areas 8 and 9. On
these targets, surficial deposits, saprolite and saprock are preserved
on plateaus that overlie the BIFs. On Target Areas 4, 5 and 6, as well
as on Target Areas 7, 10 and 13, (which have a cumulative strike length
of 9.0 kilometres), the surficial deposits and saprolite are not as
well preserved and the mineralization is hosted in saprock and BIFs.
Target Areas 11 and 12, in the extreme north of the licence area, have
low potential for extensive iron mineralization.
Drilling Update and Outlook
Currently Talon has two RC rigs and five diamond drill rigs on site at
the Trairão Project and to date 19,241 metres of RC drilling and 4,443
metres of diamond drilling have been completed.
In addition, RC drilling has been completed and assay results are
pending on Target Areas 4, 5 and 6 where the three parallel BIF units
have a 2,500 metre strike length over a wide area of some 2,000 metres.
The RC rigs are currently drilling on Target Areas 7, 8, 9, 10 and 13
(which have a cumulative strike length of 10.5 kilometres). Thereafter,
Talon plans to have the RC drilling rigs continue with deeper infill
drilling in selected areas of Target Areas 1, 2 and 3.
The diamond drill rigs are currently drilling on Target Area 1 and
Target Area 2. The diamond drilling program is intended to upgrade the
mineral resource estimates from the inferred category to the indicated
category on these priority areas. An initial 'indicated' mineral
resource estimate for Target Areas 1 and 2 is anticipated during the
fourth quarter of this year. Thereafter, Talon plans to drill selected
areas to depth to determine the mineral resource potential of the
underlying BIFs, commencing on Target Areas 1, 2 and 3.
Work on logistics, infrastructure, marketing and environmental aspects
of a preliminary economic assessment is underway and is expected to be
completed in the fourth quarter of this year. Sampling was undertaken
for preliminary metallurgical test work following completion of the
mineral characterization study. Preliminary beneficiation tests to
produce a marketable concentrate grade are now underway at a selection
of laboratories and institutions in Brazil. In addition, a conceptual
mining study is ongoing.
To view Figure 1: Trairão Iron Project - Exploration Summary, August 2011 please visit: http://files.newswire.ca/882/Figure_1_Talon_Aug_4.doc
Quality Assurance, Quality Control and Qualified Person
Talon's exploration programs are being managed by Talon's Mining
Engineer, Mr. Ricardo Álvares de Campos Cordeiro (MAIG) and Talon's VP
Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM). Mr. Cordeiro
is qualified person within the meaning of National Instrument 43-101.
The 'Qualified Person' 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 reviewed,
approved and verified the data disclosed in this news release
(including sampling, analytical and test data underlying the technical
information, and the mineral resource estimates disclosed herein). In
Coffey's opinion the mineral resource estimates disclosed herein are
compliant with NI 43-101.
Coffey prepared 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. Talon plans to file an updated technical report for Trairão next week.
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$30 million 91.8 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 Iron Project
with respect to estimates in respect of mineral resource quantities,
mineral resource qualities, the preparation of a further updated
technical report for the Trairão Iron Project and the timing associated
therewith, the potential for upgrading the mineral resource estimate
for Target Areas 1 and 2 and the timing associated therewith, and
targets, goals, objectives and plans (including the Company's
drilling-exploration plans and plans regarding scoping and
prefeasibility studies) and the timing associated therewith.
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/August2011/04/c9415.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