Talon Metals Outlines 2011-12 Exploration Program For Trairão And InajÁ South Iron Projects, Brazil
May 3, 2011
Road Town, Tortola, British Virgin Islands (May 11, 2011) - 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:
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
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.
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 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.
For additional information on Talon please visit the Company's website at www.talonmetals.com or contact:
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, the depth of the mineralization and the Company's exploration plans and objectives) 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 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 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 buy . 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 levels 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 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.