Talon has identified seven potash targets at its Sergipe Potash Project, six of which have potash intersections recorded in previous oil well drilling. Twelve drill sites have been identified for preliminary drilling, throughout the seven target areas, following an extensive remodelling of the geology of the Sergipe basin, based on approximately 234 line kilometres of 2D seismic data and the relogging of 286 historical oil wells in the area.

The first phase of drilling will focus on drilling approximately 4,500 metres on two targets.

In Target 1, sylvinite mineralization has been intersected at depths of approximately 1,150 metres and includes five sylvinite seams varying in widths from 2.2 to 10.0 metres, with a cumulative sylvinite width for all seams of 26.6 metres.

In Target 2, the potash mineralization is in the form of carnallitite which has been intersected in a nearby oil well at depths of about 512 metres. The carnallitite occurs in three seams interlayered with narrow rock salt horizons which vary in width from 6.6 metres to 21.4 metres, and have a cumulative width of 37.4 metres. The drilling site on this target will be immediately north of the common boundary between the Taquari-Vassouras mine and the Talon licences.

Talon has commissioned an international drilling contractor with local Brazilian operations to undertake the drilling program. Specialized drilling equipment is currently being imported into Brazil for this drilling program. It is anticipated that drilling will commence once the drilling equipment is established on site, which is expected to be in August 2010.

“The start of our first potash drilling program has been long anticipated but will benefit considerably from the very extensive data base that has been reviewed in the past year, in association with our specialist consultants, Stratageo and Ercosplan,” commented Stuart Comline, President and CEO of Talon. “Now that the data review and the geological modelling of the Sergipe basin are complete, we look forward to drilling the first of the targets that have been identified in the next exploration phase. Our Sergipe Potash Project has the potential to hold considerable potash resources in an area of well developed infrastructure close to the Brazilian markets which import most of their potash.”

On completion of the first phase of drilling, follow up work will depend on the results received in the first phase of drilling, but could include a 2D seismic survey, follow up drilling on Targets 1 and 2 and/or the extension of drilling to the other five targets identified.

Talon is working towards completing an initial National Instrument 43-101 (“NI 43-101”) mineral resource estimate for the Sergipe Potash Project during 2011.

About Talon’s Sergipe Potash Project
The Sergipe Potash Project is located on the northeastern coast of Brazil, near the coastline city of Aracaju, the capital of Sergipe State. This project has a comprehensive technical data base, access to excellent infrastructure and good proximity to Brazilian potash markets. It is close to Brazil’s only producing potash mine, Taquari-Vassouras, which is operated by Vale.

The Sergipe Potash Project comprises 76 exploration licences, in 12 separate land holdings, over a total area of 107,987 hectares (266,840 acres). In addition, Talon has 4,982 hectares (12,311 acres) under application for exploration licences. Together this area totals 112,969 hectares (279,152 acres).

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality mineral resource projects. 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$2.9 million and has 63,877,950 common shares outstanding and 70,517,450 shares fully diluted.

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

Forward-Looking Information

This news release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to: the Company’s drilling program at the Sergipe Potash Project, including the timeline and focus for such program; prospective drilling sites; the benefit of historical data to the drilling program; the potential of the Company’s Sergipe Potash Project to hold potash resources and the suitability of such resources for the Brazilian market; and the timing, scope and implementation of follow up work in respect of the drilling program.

Forward-looking information is 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 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, but are not limited to: changes in potash prices; changes in the anticipated demand for fertilizer including factors related to world population growth, income per capita, the use of biofuels and area of arable land; political developments in Brazil; changes to regulations affecting the Company’s activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company’s proposed drilling program; delays in receiving and evaluating outstanding historical data to define the most attractive targets for potash mineralisation; the uncertainties involved in interpreting drilling results and other geological data; the possibility that future exploration results will not be consistent with the Company’s expectations; exploration costs varying significantly from estimates; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company’s projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry.

Forward looking information 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 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 post Talon Outlines Drilling Plans For Sergipe Potash Project, Brazil appeared first on Talon Metals Corp.

In addition, Talon has an option to increase its stake in Tlou Energy by subscribing for up to an additional 4,945,055 shares. The exercise price of this option is A$1.25 per share and the expiry date is June 30, 2013. Also, there is a provision for one Talon representative to be appointed to Tlou Energy’s board of directors and Talon also has the right to nominate a second director. The Saber drilling equipment being held for sale is not part of the proposed transaction and will remain the property of Talon.

The Saber Gas Project is targeting coal bed methane (“CBM”) and shale gas deposits (collectively referred to as “Gas Deposits”) in Botswana, Africa. This Project has licenses with a total area of approximately three million acres over three blocks in Botswana. Tlou Energy is currently managing, operating and funding the exploration program on the Saber Gas Project. Talon holds a 90% interest in the Kalahari block (this interest can be reduced to 65% in certain circumstances), a 21% interest in the Masama block and a 25% interest in the Kweneng block.

Tlou Energy is an emerging gas exploration company actively prospecting for Gas Deposits throughout southern Africa with a treasury of over A$12 million. The principals have a proven track record of creating shareholder value in CBM companies. One such example is Sunshine Gas Limited, an Australian Stock Exchange listed CBM company which was initiated and prospected by the principals of Tlou Energy up to the discovery and delineation of a significant CBM resource. Sunshine Gas, which was a Top 200 ASX-listed entity, was subsequently sold to Queensland Gas Company for A$1.1 billion (US$722 million) in 2008.

“This transaction gives Talon a substantial holding in a leading CBM exploration company actively seeking and prospecting Gas Deposits in southern Africa,” commented Stuart Comline, President and CEO of Talon. “Tlou Energy has an experienced management team and the skills, technologies and resources to develop and commercialize production on the Gas Deposits in the region. With the fulfilment of Tlou Energy’s plans to pursue a stock exchange listing within the next year, these shares would become tradable securities which should benefit from public market valuations in this buoyant sector.”

Tlou Energy has drilled 9 of a total of 12 holes planned for the exploration program encompassing the Masama, Kalahari and Kweneng blocks at the Saber Gas Project. Although full results are awaited, the results received to date meet the expectations of Tlou Energy’s technical team.

The transaction as outlined in the MoU will supersede the joint venture agreements entered into by Saber Energy Corp. and Tlou Energy in 2009.

The completion of the transaction outlined in the MoU is conditional on, among other things, reciprocal due diligence reviews by both Talon and Tlou Energy, both parties receiving shareholder approval, an independent valuation, and any additional approvals in Botswana or required by the Toronto Stock Exchange or applicable corporate law.

Subject to these terms being fulfilled, the transaction is expected to close in late October 2010. A copy of this agreement will be filed on Talon’s SEDAR profile at www.sedar.com.

About the Saber Gas Project
The Saber Gas Project (“Saber”) is an unconventional gas project targeting coal bed methane (“CBM”) and shale gas deposits in Botswana, Africa. Saber’s exploration licences are located in highly prospective targets in the Karoo age rocks in the Kalahari and Zambezi basins. The aim of this project is to explore, establish and commercialize CBM and shale gas production. Southern Africa is experiencing a shortage of electrical generation capacity and utilities in the region are looking to secure unconventional gas supplies to fuel new power stations.

The Saber licences areas contain an estimated contingent gas resource of 23 trillion cubic feet on a best estimate basis. This is based on a Canadian National Instrument 51-101 compliant resource report by Gustavson and Associates, independent reservoir engineers and geological consultants, completed in September 2009. (Contingent resources are defined as those quantities of gas estimated on a given date to be potentially recoverable from known accumulations, but on which the economic viability has not been assessed. There is no certainty that it will be commercially viable to produce any portion of the resource. Additional information with respect to the resource report can be found in Appendix “D” Saber Energy Corp. Information Brochure to the management information circular of Talon Metals Corp. dated February 2, 2010, which is available on SEDAR at www.sedar.com.)

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality mineral resource projects. 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$3 million and has 63,877,950 common shares outstanding and 70,517,450 shares fully diluted.

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

About Tlou Energy Ltd
Tlou Energy is an unlisted public Australian based coal bed methane exploration company focused on southern Africa. It was founded by the principals of Walcot Capital and Mitchell Energy Group and is currently managing, operating and funding the Saber Gas Project.

Walcot Capital
Walcot Capital (“Walcot”) is a Brisbane based private venture capital business specializing in energy investment. The principals at Walcot have extensive experience in the upstream energy sector and have successfully founded developed and commercialized CBM companies in Australia and New Zealand. Walcot has a team of multi-skilled professionals across geological, engineering, legal and commercial facets of the energy sector.

Most recently the principals of Walcot were involved in the founding, developing and commercialization of Sunshine Gas Limited, a CBM company with licences in eastern Australia. Sunshine Gas was listed on the Australian Stock Exchange in 2002 at a market capitalization of A$5 million. In 2008, Sunshine Gas, which was a Top 200 ASX- listed entity, was acquired by Queensland Gas Company for approximately A$1.1 billion (US$722 million).

For more information on Walcot Capital please visit www.walcotcapital.com.

Mitchell Energy Group
Mitchell Energy Group was founded in 1969. In 1999 Mitchell Group started a multi-million dollar research and development program aimed at creating enhanced drilling techniques for varied coal reservoir properties. Its initial focus and test bench was the coal bed methane industry in Australia, but this quickly expanded into the international arena. Today Mitchell Group has projects in Africa, India, China, and the US and is continuing to investigate other global CBM opportunities.

For more information on Mitchell Group please visit www.mitchellgroup.net.

Forward-Looking Information

This press release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to it. Such forward-looking information includes, among other things, statements relating to: the MoU and the benefits to Talon thereunder; Tlou Energy’s plans in respect of pursuing a stock exchange listing and the timing of such listing; the valuation of the securities of Tlou Energy; and the timetable for closing of the transaction with Tlou Energy.

Forward-looking information is 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 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, but are not limited to: Tlou Energy’s intentions in respect of the Saber Gas Project, its obligations under the MoU and the listing of its securities on a stock exchange; Tlou Energy’s financial condition and the results of exploration at the Saber Gas Project; delay in, or failure of, Tlou Energy to comply in all material respects with the terms and conditions of the MoU; delay or failure to obtain any approvals required in Botswana or under the rules of the Toronto Stock Exchange and applicable corporate law; changes in electricity prices (market or otherwise); changes in the anticipated demand for electricity in southern Africa; declines in the Australian, U.S., Canadian and/or global economies; political developments in southern Africa; volatility in prices of publicly traded securities; changes in exchange rates; changes to regulations affecting the Company’s activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; failure of Tlou Energy’s investment to advance the development of the Saber Gas Project; inability to commercially exploit the resources which may be contained in the Saber Gas Project, including the production of downstream products such as petrochemicals; inability to secure and produce sufficient water to support gas production; actual gas usage varying from assumptions; the uncertainties involved in interpreting drilling results and other geological data; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Saber Gas Project; delays in the exploration and development of, and/or commercial production from, the Saber Gas Project; success of future exploration and development initiatives; and other risks involved in the natural resource exploration and development industry.

Forward looking information 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 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 post Talon Announces Mou With Tlou Energy On The Saber Gas Project, Botswana appeared first on Talon Metals Corp.

Capitalized exploration for the three and six month periods ended June 30, 2010, amounted to $697,833 and $999,734 respectively. This relates mainly to work done on the Sergipe Potash Project and work done on Talon’s smaller projects, as well as the São Jorge Gold Project. This compares to $507,579 and $632,404 for the three and six month periods respectively of last year.

Subsequent to the end of the second quarter, Talon concluded an agreement regarding the Juruena Gold Project with Lago Dourado Minerals Ltd (“Lago”), a private company. Under the terms of this agreement, Talon sold 100% of its indirect interest in Juruena to Lago. In return, Talon received consideration including a cash payment of approximately $1 million that was received in July 2010. This increased Talon’s treasury to approximately $4 million.

This agreement with Lago supersedes the option agreement on Juruena of February 2010 with Gungnir Resources Inc. For more details on this agreement, please see Talon’s Consolidated Interim Financial Statements for the three and six months ended June 30, 2010, along with Management’s Discussion and Analysis, which have been filed on SEDAR and are available at www.sedar.com.

About Talon

Talon is a TSX-listed company focused on the acquisition, 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.

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

The post Talon Metals Reports Second Quarter 2010 Results appeared first on Talon Metals Corp.

The agreement with Codelco resulted in Talon acquiring a 70.05% interest in the Trairão iron project (“Trairão Project”). Talon separately acquired Barrick do Brasil MineraÇão Ltda., (“Barrick Brasil”), which holds the remaining 29.95% interest in the Trairão Project, from Barrick Barbados. With this acquisition, Barrick Brasil became a wholly owned subsidiary of Talon and will berenamed Talon Iron MineraÇão Ltda. Barrick Brasil also has a 100% interest in an exploration licence with iron ore potential in the InajÁ greenstone belt (“InajÁ South Project”) and a 33.69% interest in the Terra Escura Nickel Project, also in ParÁ State.

Under the agreement with Codelco, Talon paid Codelco a nominal purchase price and will pay a royalty of US$0.7005 per tonne of iron mined and sold, in the event of mining in the future on the licences.

Under the agreement with Barrick Barbados, Talon paid Barrick Barbados a nominal purchase price and is obliged to pay certain production related royalties, at varying levels in respect of specific metals, in the event of mining on any of the rights to projects held by Barrick Brasil.

In the case of the Trairão Project, the royalty payable to Barrick Barbados is US$0.2995 per tonne of iron mined and sold. However, Talon has the right to buy back this royalty for US$599,000 during the 12 month period following the start of commercial production. In terms of the InajÁ South Project, Barrick will receive a net smelter royalty of 0.5% for any base metals that may be produced and sold and 1.0% for any precious metals that may be produced and sold. There are also provisions for Talon to buy back the base metal royalty and for Barrick Barbadosto buy back up to a 50% interest in any future gold mining operation, which exceeds a reserve of three million ounces.

“The acquisition of these iron ore projects is in line with our strategy to acquire interests in new mineral projects where there is the potential to add value through further exploration,” said Mr. Stuart Comline, President and CEO of Talon. “In the case of iron ore, there is robust demand and solid fundamentals for the future of the commodity. The Trairão Project in particular, being at surface and partially prospected, has the potential to be developed through an intense prospecting program.”

The ParÁ State is one of the more recently developed iron ore producing districts in Brazil and in which the principal iron ore mines are at CarajÁs, some 200 kilometres to the north of the Trairão Project. Currently exploration for iron ore by other companies continues both to the south and north of the Trairão Project area, and in the immediate vicinity of the InajÁ South Project area.

The Trairão Project has exploration licences for approximately 72,429 hectares over 12 properties and applications have been made for an additional two properties covering a further 17,869 hectares, which areas have near surface iron ore potential. Nine discreet and extensive occurrences of banded iron formation (“BIF”), which are hosted in the Archean age Serra da Seringa greenstone belt, are developed within the licence areas acquired by Talon. The BIFs have a cumulative strike length of 51 kilometres and are covered by iron rich colluvium and epigenetically enriched iron deposits near surface, which collectively extend to depths of between 20 and 61 meters. Codelco, in its joint venture with Barrick Brasil, undertook only limited exploration on the nine target areas, but drilled three diamond drill holes, which had individual assays of between 45% and 60% Fe, over 28 metres, 61 metres and 31 metres, respectively, within the near surface colluvial and enriched deposits.

Based on the exploration completed to date and Talon’s extensive due diligence work, the Company intends to commence a drilling program immediately on the known higher priority target at the Trairão Project, with the intention of establishing a National Instrument 43-101 compliant resource estimate on the near surface enriched iron deposits on the initial priority target area, during the first quarter of 2011. Thereafter, drilling will extend to the other target areas.

At the InajÁ South Project, which is located 120 kilometres south of the Trairão Project, Talon has acquired one mineral licence, with an area of 6,577 hectares. Within the licence area, an Archean age BIF of the InajÁ greenstone belt is developed along a prominent ridge over a strike length of 11 kilometres. The principal target here is the BIF, which is similar to the targets currently being prospected by other companies on the adjacent licences.

The Terra Escura Nickel Project is located 40 kilometres southwest of the town of Rio Maria and immediately adjacent to Trairão Iron Project. It comprises two nickel laterite targets known as Santa FÉ and Santa Cruz, with exploration permits covering 19,863 hectares. Nickel mineralization is related to the lateritic profile developed over sepentinized dunites and peridotites that are part of the Serra Azul mafic-ultramafic complex.

Figure 1 – Map of Talon’s Iron Ore Projects

Conference Call
Talon Metals will host a conference call with Stuart Comline, President and CEO, to discuss this news release on Wednesday September 29,2010 at 1:00 p.m. Eastern Standard Time.

To participate in the conference call, investors and media from the US and Canada should dial 1-888-231-8191 ten minutes prior to the scheduled start time. International callers should dial +1 (647)427-7450.

Talon Metals will offer an archived webcast of the conference call, accessible from the Company’s web site at www.talonmetals.com.

Special Shareholder Meeting
Talon Metals will be holding a special shareholders meeting on Wednesday, October 27, 2010 to approve the proposed transaction with Tlou Energy Limited (“Tlou Energy”) regarding the Saber Gas Project. The Company intends to transfer to Tlou Energy its remaining rights and interest in the Saber Gas Project licenses in return for an approximate 30% interest in Tlou Energy.

An information circular dated September 27, 2010 will be mailed to shareholders on or before Wednesday October 6, 2010.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality mineral resource projects. 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$4 million and has 63,877,950 common shares outstanding and 70,517,450 shares fully diluted.

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

Forward-Looking Statements

This press release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to: the Company’s exploration plans at the Trairão Project; the Company’s business plans and priorities; potential mineralization and resources at the Trairão Project and the InajÁ South Project; potential development of the Trairão Project; market trends with respect to demand for and the price of iron ore; and the plans and expectations of the Company concerning the transfer to Tlou Energy of Talon’s rights and interest in the Saber Gas Project licenses.

Forward-looking information is 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 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, but are not limited to: changes in the price of iron ore; changes in the anticipated demand for iron ore; political developments in Brazil; changes to regulations affecting the Company’s activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company’s proposed drilling program; equipment failure; unexpected geological or hydrological conditions; the uncertainties involved in interpreting drilling results and other geological data; the possibility that future exploration results will not be consistent with the Company’s expectations; exploration costs varying significantly from estimates; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of Talon; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company’s projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry. For risk factors relating to the proposed transfer of the Company’s remaining interest in the Saber Gas Project to Tlou Energy, see the section entitled “Forward-Looking Information” in the Company’s press release dated August 12, 2010 available on the Company’s SEDAR profile at www.sedar.com.

Forward looking information 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 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 post Talon Announces Acquisition Of Two Iron Ore Projects In Brazil appeared first on Talon Metals Corp.

Brazilian Gold has made the first payment to Talon of $1 million in cash and $500,000 in Brazilian Gold shares*. This is the first of three cash and share payments under the option agreement announced in Talon’s news release of June 15, 2010. Under the terms of this agreement, Brazilian Gold has a right to acquire a 100% interest in São Jorge through the payment to Talon of a total of $2,250,000 in cash and $2,250,000 in Brazilian Gold shares by May 2012.

“This $1 million addition to Talon’s treasury further strengthens Talon’s financial position as we start ourdrilling program at our iron ore and potash projects,” said Mr. Stuart Comline, President and CEO of Talon.

*Calculated as the number of Brazilian Gold shares equal to the dollar amount divided by the twenty day volume-weighted average trading price of Brazilian Gold shares.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore, potash and othermineral resource projects. 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$5 million and has 63,877,950 common shares outstanding and 70,517,450 shares fully diluted.

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

The post Talon Receives First Payment From The Sale Of The São Jorge Gold Project, Brazil appeared first on Talon Metals Corp.

Rio Verde’s strategic plan is to be a leading Brazilian focused fertilizer company. It is currently an unlisted company. Complementing Talon’s potash properties as part of Rio Verde’s build-out of its fertilizer business, Rio Verde is expected to acquire certain phosphate properties in Brazil from Sercor Ltd. (“Sercor”), which is also a party to this LOI. Under the terms of this LOI, Sercor would hold about 22% of Rio Verde*.

“This transaction is aligned with our strategy to secure a partner to develop the Sergipe Potash Project,” said Stuart Comline, President and CEO of Talon. “We believe the synergy in combining these phosphate and potash assets in one company creates a compelling competitive advantage and enhances shareholder value for all parties. Also importantly, it allows Talon to focus its management team and financial resources on the development of its iron ore projects.”

Upon completion of the transactions contemplated by the LOI (the “Proposed Transactions”), Talon will have the right to nominate a majority of the directors of Rio Verde until Rio Verde completes a “going public” transaction, if at all. It is anticipated that Mr. Warren Newfield, Chairman of Talon and Mr. Luis M. F. De Azevedo, COO of Talon will be appointed as directors of Rio Verde. It is also expected that Mr. David Beatty, CEO of Rio Novo Gold Inc. (TSX:RN), will be appointed Chairman of Rio Verde.

The Proposed Transactions are expected to close in December 2010. The closing is conditional upon, among other things, the board of directors of Talon having received a fairness opinion from a financial advisor, satisfactory due diligence by all of the parties, the execution by the parties of binding definitive agreements and Rio Verde raising aggregate gross proceeds of at least US$3 million.

Upon completion of the Proposed Transactions, Talon will acquire pre-emptive rights to a proportionate participation in any future offering of equity securities of Rio Verde, exercisable for so long as Talon holds 10% or more of the issued and outstanding common shares of Rio Verde, subject to termination in the event that Rio Verde completes a “going public” transaction.

Following closing of the Proposed Transactions, Rio Verde intends to continue the exploration program for the Sergipe Potash Project and to prepare a technical report for this project in compliance with Canadian National Instrument 43-101.

Pending the successful conclusion of this transaction and Talon’s previously announced transaction with Tlou Energy Limited, Talon’s primary focus will be its 100% owned iron ore projects in Brazil. Talon is undertaking an aggressive exploration program at its Trairão Iron Ore Project. As a substantial shareholder of Tlou Energy and Rio Verde following the completion of these transactions, Talon’s shareholders would stand to benefit from any significant exploration success on these gas and fertilizer projects.

* as of the closing date of the Proposed Transactions, excluding a planned Rio Verde financing of at least US$3 million prior to closing.

Potash Drilling Program Update
Talon’s drilling program at the Sergipe Potash Project is now anticipated to begin immediately following the delivery of all the drilling equipment to site by November. The delivery of all of this imported equipment unfortunately has been delayed since Talon’s last update to shareholders in July.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore and othermineral resource projects. 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$5 million and currently has 63,877,950 common shares issued and outstanding and 69,706,950shares fully diluted.

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

About Rio Verde

Rio Verde Minerals Corp. is a private company focused on the exploration and development of fertilizer projects in Brazil.

Following the closing of the proposed transactions with Talon Metals Corp. and Sercor Ltd., Rio Verde expects to have one potash project and four phosphate projects in Brazil. Potash and phosphate fertilizers have favourable supply and demand dynamics and Rio Verde expects to have a significant cost advantage by being based in Brazil. Rio Verde intends to fast track exploration to establish a Canadian National Instrument 43-101 resource estimate.

Rio Verde intends to complete a “going public” transaction through the listing of its shares on a recognized exchange in Canada, although there can be no assurance that this transaction will be completed or that Rio Verde’s shares will ever be listed on a stock exchange.

For additional information on Rio Verde Minerals Corp., please visit www.rvminerals.com or contact:

Stephen Keith
President & CEO
Rio Verde Minerals Corp.
Tel: (416) 368-1592
Email: info@rvminerals.com

Forward Looking Statements
This news release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Such forward-looking information includes, among other things, statements relating to: the proposed terms for, and anticipated timing and completion of, the Proposed Transactions; the expected benefits of the Proposed Transactions to Talon and its shareholders; the Company’s proposed business plans, investments and priorities following the completion of the Proposed Transactions; Rio Verde’s future strategic and exploration plans, including the completion of, and timing for, a National Instrument 43-101 compliant technical report on the Sergipe Potash Project; the completion of the Company’s transaction with Tlou Energy Limited; future drilling activities by the Company at the Sergipe Potash Project; and the possible completion of a “going public” transaction by Rio Verde in the future.

Forward-looking information is 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 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, but are not limited to: the inability of the Company, Rio Verde and/or Sercor to satisfy, or obtain a waiver of, the conditions precedent to the completion of the Proposed Transactions for which they are each responsible; a delay or failure by Talon, Rio Verde and/or Sercor to comply in all material respects with the terms and conditions of the LOI; a delay in the receipt of, or a failure to obtain, any required regulatory approvals for the Proposed Transactions; adverse market conditions; changes to regulations affecting the Company’s activities, including tax and trade laws and policies; changes in the price of, or demand for, iron ore and/or potash and/or phosphate; adverse political developments in Brazil, Botswana or any of the other countries in which the Company’s operations are located; the success of future exploration and development initiatives; uncertainties relating to the availability and costs to the Company of financing for exploration and development; Rio Verde’s failure to complete a “going public” transaction; and other risks involved in the mineral exploration and development industry.

The forward-looking information in this news release reflects the current expectations, assumptions or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made certain assumptions about the Company’s business, the economy and the mineral exploration industry in general, the regulatory framework in Brazil, Botswana and/or the other countries in which the Company’s operations are located, including that the Company, Sercor and/or Rio Verde will be able to satisfy or obtain a waiver of any conditions imposed by applicable regulatory authorities necessary in order to complete the Proposed Transactions, the execution of a definitive agreements relating to the Proposed Transactions, the satisfaction or waiver, as applicable, of the conditions precedent to the completion of the Proposed Transactions, Rio Verde proceeding with its intention to complete a “going public” transaction in the near future, and has also assumed that no significant events occur outside of the Company’s normal course of business. 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.

Forward looking information 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 forward-looking information, whether as a result of buy .

The post Talon Signs Letter Of Intent With Rio Verde Minerals On The Sergipe Potash Project appeared first on Talon Metals Corp.

On September 29, 2010, Talon announced that it had acquired a 100% interest in the 72,429 hectare Trairão Project, in which nine target areas had been identified on known banded iron formation (“BIF”) deposits, which have a cumulative strike length of 51 kilometres. The principal targets are the enriched colluvium and saprolite zones at surface.

The preliminary drilling program will focus on grid drilling of the near surface deposits on two of the priority targets identified in earlier exploration and drilling, including Target Area 1, where some 2,000 metres of strike will be drilled and the adjacent Target Area 2, where some 3,000 metres of strike will be drilled in the first phase of drilling.

Talon has completed surface mapping of the areas to be drilled as well as a ground magnetic survey and test auger drilling and rock sampling in the area. This preliminary drilling phase is scheduled to take some four months to complete the drilling and to receive, interpret and report all of the drill results.

The preliminary drilling program aims to investigate the lateral continuity of the iron mineralization associated with a colluvium deposit and underlying supergene enriched saprolite zone that is developed on an extensive plateau area (Figure 1). The program will include the drilling of sixty vertical RC drill holes to depths of between 40 and 60 metres, with an average depth of 50 metres, to test two high priority zones where historical drilling reported significant iron grades. The spacing between the drill holes will range from 200 to 400 metres. Talon will also re-assay the historical diamond drill holes which were drilled by the previous operator, Codelco do Brasil MineraÇão Ltda., in 2009 within Target Areas 1 and 2.

The preliminary RC drilling program will be undertaken by Servitec-Sondagem GeolÓgica, an established Brazilian drilling contractor. It is anticipated that samples will be analysed by SGS-Geosol laboratory, which is ISO14001 and ISO 9001:2000 accredited and is independent of Talon. Selected RC samples will be retained for preliminary metallurgical testwork. In addition, Talon has engaged Coffey Mining Ltd. to undertake a report on the Trairão Project and the drilling program. This report will comply with Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Figure 1: Aerial view of the Trairão Plateau (19 kilometres long)

“The aim of this drilling program is to test some five kilometres of strike, or 10% of the approximately 50 kilometres of the strike of the iron deposits within the licence areas, to determine the characteristics of the deposits and in particular the lateral continuity and iron grades, as well as the extent of the reported enrichment of these near surface deposits,” said Mr. Stuart Comline, President and CEO of Talon. “Depending on the results, we would use the drilling data to contribute towards an estimate of inferred resources in these initial test areas and, if warranted, undertake preliminary metallurgical testwork. If the results prove positive, further drilling will extend to the other similar deposits within the licence areas and we will also drill the underlying BIF deposits.”

About the Trairão Project
The Trairao Project includes 12 exploration licences over approximately 72,429 hectares and in addition applications have been submitted for an additional two properties covering a further 17,869 hectares. All these areas have near surface iron potential. Nine discreet and extensive occurrences of BIF, which are hosted in the Archean age Serra da Seringa greenstone belt, are developed within the licence areas acquired by Talon. The BIFs have a cumulative strike length of 51 kilometres and are covered by iron rich colluvium and epigenetically enriched iron deposits near surface, which collectively extend to depths of between 20 and 61 meters.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore and other mineral resource projects. 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$7 million and holds 985,830 common shares in Brazilian Gold Corporation (TSXV:BGC). Talon has 68,559,398 common shares outstanding and 76,729,122 shares on a fully diluted basis taking into account the private placement announced separately today.

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

Forward-Looking Statements

This press release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to: the Company’s drilling program at the Trairão Project, including the timeline and focus for such program; prospective drilling sites; use of the drilling data to estimate inferred resources; and the timing, scope and implementation of follow-up work in respect of the drilling program.

Forward-looking information is 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 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, but are not limited to: changes in the price of iron ore; changes in the anticipated demand for iron ore; political developments in Brazil; changes to regulations affecting the Company’s activities, including tax and trade laws and policies; delays in obtaining or failures to obtain required regulatory permits and approvals from government authorities; delays in commencing the Company’s proposed drilling program; equipment failure; unexpected geological or hydrological conditions; the uncertainties involved in interpreting drilling results and other geological data; the possibility that future exploration results will not be consistent with the Company’s expectations; exploration costs varying significantly from estimates; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of Talon; uncertainties relating to the availability and costs of financing needed to complete exploration activities and demonstrate the feasibility of the Company’s projects; the success of future exploration and development initiatives; and other risks involved in the mineral exploration and development industry.

Forward-looking information 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 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 post Talon Starts Drilling On The Trairão Iron Project In Brazil appeared first on Talon Metals Corp.

Road Town, Tortola, British Virgin Islands (Oct 21, 2010) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that it has completed the first part of a non-brokered private placement with a strategic investor for a total of 4,681,448 units (each, a “Unit”) at a price of CDN$0.45 per Unit for gross proceeds of CDN$2,106,652.

Each Unit is comprised of one common share of Talon (each, a “Common Share”) and one-half of one Common Share purchase warrant. Each whole such purchase warrant, entitling the holder thereof to purchase one Common Share at an exercise price of CDN$0.60 per Common Share. The warrant expiry date is October 21, 2012.

The price of the Units reflects the five-day volume weighted average trading price of the Common Shares on the TSX calculated as at September 16, 2010, the date on which the notice of private placement was filed with the TSX. Under the policies of the TSX, Talon had up to 45 days to close the private placement.

A second and final closing with additional strategic investors to complete this private placement is anticipated next week. The balance of this private placement is for a further 5,964,877 Units for gross proceeds of CDN$2,684,195.

The proceeds from this private placement will be used for the exploration program at Talon’s Trairão Iron Ore Project.

“With this addition to our treasury we intend to complete our aggressive Phase 1 exploration program at the Trairão Iron Ore Project and fund operations through the medium term,” said Mr. Stuart Comline, President and CEO of Talon.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore and other mineral resource projects. 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$7 million and holds 985,830 common shares in Brazilian Gold Corporation (TSXV:BGC). Talon has 68,559,398common shares outstanding and 76,729,122 shares on a fully diluted basis taking into account this private placement.

For additional information on Talon please visit the Company’s website at www.talonmetals.com or contact:

Erica Belling, CFA
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com

Forward-Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s anticipated use of proceeds, the second closing of the private placement and the Company’s intention to complete the Phase 1 exploration program at the Trairão Iron Ore Project. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, general business and economic uncertainties, exploration costs varying significantly from estimates, volatility in the prices of publicly traded securities, future mineral prices and adverse market conditions, as well as those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

The post Talon Announces Closing Of Private Placement appeared first on Talon Metals Corp.

The fulfilment of the remaining conditions required for the closing of this transaction is expected in about a month. Accordingly, the anticipated closing date for this transaction has been revised from the end of October to the end of November 2010.

Additional details of this transaction are available in Talon’s news release of August 12, 2010.

Yesterday, Tlou Energy’s shareholders unanimously approved the proposed transaction at a special meeting of its shareholders.

“The unanimous support of both Talon and Tlou’s shareholders allows us to move forward towards closing this transaction which will give Talon a substantial holding in a leading CBM exploration company in southern Africa,” said Stuart Comline, President and CEO of Talon. “While Tlou Energy is currently an unlisted company it plans to pursue a stock exchange listing within the next year.”

* 19,285,714 shares or 30% on a fully diluted basis as of the closing date of the transaction.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of iron ore and other mineral resource projects. 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$10 million and holds 985,830 common shares in Brazilian Gold Corporation (TSXV:BGC). Talon has 74,524,275 common shares outstanding and 86,706,437 shares on a fully diluted basis.

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

Forward-Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the completion and timing of completion of the transaction, the consequences of the transaction, the participating interest of Talon in Tlou resulting from the transaction and Tlou’s intention to pursue a stock exchange listing. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure of Talon and Tlou to complete the transaction, failure of Tlou to obtain a stock exchange listing, general business and economic uncertainties, volatility of and sensitivity to market prices for gas and prices (market or otherwise) for electricity; delays in obtaining or failures to obtain necessary permits and approvals from government and regulatory authorities (including in Botswana) and under applicable corporate laws, uncertainties involved in interpreting drilling results and other geological data, changes in the anticipated demand for electricity in Sub-Saharan Africa, issuance of shares of Tlou, adverse market conditions, as well as those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

The post Talon Shareholders Approve Transaction With Tlou Energy appeared first on Talon Metals Corp.

This compares to net loss of $1,241,929 or $0.05 per share (basic and diluted) for the three months ended September 30, 2009 and net loss of $1,331,193 or $0.05 per share (basic and diluted), for the first nine months of last year.

Capitalized exploration for the three and nine month periods ended September 30, 2010, amounted to $509,008 and $1,508,742 respectively. This primarily relates to the Sergipe Potash Project, and to work done on Talon’s smaller projects, as well as São Jorge. This compares to $284,773 and $917,177, respectively, for the three and nine month periods last year.

Consolidated Interim Financial Statements for the three and nine months ended September 30, 2010, along with Management’s Discussion and Analysis, have been filed on SEDAR and are available at www.sedar.com.

About Talon

Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality resource projects. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.

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: Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com

The post Talon Metals Reports Third Quarter 2010 Results appeared first on Talon Metals Corp.