Coal and shale lithologies intersected
Road Town, Tortola, British Virgin Islands (May 27, 2010) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the preliminary results of core drilling at the Masama licence block at the Saber Gas Project (“Saber”). This drilling is part of the exploration program which Tlou Energy Pty Ltd (“Tlou”), Talon’s joint venture partner is completing under the farm-in agreement at Saber in Botswana, Africa.
Preliminary results from the drilling of four core holes at the Masama licence block have been reported by Tlou and are in line with the expectations of Tlou’s technical team. The widths of the carbonaceous intervals (including coal and shale) intersected in these holes were between 42 and 67 metres (“m”) and the holes were drilled to depths of between 405 and 679 metres. A total of 85 samples of coal and shale are undergoing gas desorption tests. In addition, the drill stem tests which were conducted on the coal and shale intersections are being analyzed. The test work is being undertaken at Tlou’s laboratory in Francistown, Botswana.
“The preliminary results of the first holes drilled in this phase of exploration at the Saber Gas Project are encouraging in that they have intersected the coal seams and associated shales, which are the target lithologies for the gas deposits,” said Mr. Stuart Comline, President and CEO of Talon. “Although we will await the results of the testwork currently in progress, we are also encouraged by the widths of the target coal and shale lithologies intersected at the appropriate depths for the development of the gas deposits.”
Highlights from four holes at the Masama block include:
|Hole No.||Drill depth (m)|
(End of Hole)
|Coal and Shale|
Tlou discontinued the drilling of a fifth hole due to drilling complications and decided not to redrill it due to scheduling constraints.
Tlou has relocated the drill rigs from the Masama block to the Kalahari block, and pre-collar drilling is in progress. This work is progressing well and the follow up core drilling on the first of these holes is underway.
The third and final part of this exploration program will be the drilling of core holes at the Kweneng block by Tlou. Drilling and data analysis for the entire exploration program is expected to be concluded by late 2010.
Figure 1 – Location of Talon’s Saber Gas Project in Botswana
About the Saber Gas Project
Saber is an unconventional gas project targeting coal bed methane (“CBM”) and shale gas deposits in Botswana, Africa. 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.)
Under the joint venture agreement with Talon, Tlou will drill a minimum of 12 core holes (the “First Exploration Program”) as well as complete other commitments to earn an ownership interest of between 10% and 75% in each of the three blocks (Masama, Kalahari and Kweneng). Consequently Talon holds a 90% interest in the Kalahari block, a 21% interest in the Masama block and a 25% interest in the Kweneng block. Tlou is managing and fully funding the First Exploration Program at an estimated cost of US$8 million.
Following the First Exploration Program, Tlou may elect to conduct a second exploration program or a production pilot well drilling program. The JV agreement states that Tlou must carry Talon for 225 days from the date it commences a production pilot well drilling program.
Saber’s exploration licences total approximately three million acres (1.2 million hectares) and are located in highly prospective targets in the Karoo age rocks in the Kalahari and Zambezi basins in Botswana.
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.
Talon has a treasury of approximately CDN$3.5 million and has 63,877,950 common shares outstanding and 65,542,950 shares fully diluted.
For additional information on Talon please visit the Company’s website at www.talonmetals.com or contact:
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
About Tlou Energy Pty Ltd
Tlou is a 50-50 joint venture between the Mitchell Group and Walcot Capital. Tlou is applying Mitchell Energy’s Integrated Exploration SolutionTM (a proprietary exploration methodology) and its own unique drilling technology to the Saber Gas Project. This technology is expected to be best suited to maximize gas production and decrease the anticipated capital costs per standard cubic feet of gas.
Mitchell 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.
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, Mitchell Group and Walcot were involved in the founding, developing and commercialization of Sunshine Gas Limited, a previously Australian Stock Exchange listed CBM company. In 2008, Sunshine Gas 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.
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 timing of the completion of drilling and data analysis for the Company’s exploration program in the Saber Gas Project. Assumptions have been made in making these forward-looking statements including, but not limited to, Tlou’s completion of the exploration program and the fulfillment of its other commitments pursuant to the farm-in agreement.
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: risks related to the exploration stage of the Saber Gas Project, the possibility that future exploration results will not be consistent with the Company’s expectations, the possibility that the Company’s joint venture partners fail to complete their commitments, uncertainties relating to the availability and costs of financing needed in the future, changes in gas and electricity prices, 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 natural resource exploration business.
Forward looking information speaks only as of the date on which it is made. 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.