Road Town, Tortola, British Virgin Islands (Nov 25, 2009) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to provide an update on its Sergipe Potash Project located in Sergipe State, Brazil.
Since July 2009, Talon has extended its landholding position and identified a large drilling and geophysical data base for the Sergipe Potash Project. The area held now comprises ten onshore and two offshore prospects, in which the Company holds exploration licences for 57,501 hectares (142,087 acres), an increase of 36,384 hectares (89,906 acres) or 172%, over its original land position as reported in Talon’s news release of July 6, 2009. This includes 14 exploration licences which have been granted in the past week.
In addition, Talon has submitted applications for further exploration licences over an area of 23,066 hectares (56,997 acres). Moreover, Talon is conducting negotiations with other parties to acquire interests in additional properties with potash potential within the Sergipe Basin.
“Talon’s current landholding represents approximately 12% of the onshore portion of Sergipe sedimentary basin enhancing Talon’s position in this basin, currently the only potash producing region in Brazil,” said Mr. Stuart Comline, President and CEO of Talon. “The recently granted licences increase the area we hold, which may be underlain by significant potash deposits. Furthermore, we are most encouraged that we now have a number of prospects with drilled potash intersections as well as access to a more comprehensive drilling and seismic data base than we had originally anticipated would be available to us. This expanded data base will serve to enhance our exploration program.”
Talon’s exploration program includes an initial compilation of all available drilling and geophysical data (Phase I) in order to identify and to model priority targets within the Sergipe Basin, based on basin structure and the limits and zonation of the potash mineralization. The recent identification and acquisition of considerably more drilling and seismic data than originally anticipated will improve significantly the understanding and delineation of the potash targets, prior to the commencement of drilling.
The initial geological model was based on the logs and results of 86 oil wells, previously drilled into the basin and which intersected the Ibura evaporite sequence, the host of the potash deposits. The number of wells now available to Talon within the basin has increased considerably to a total of 262 wells. The data from these wells has been acquired and is being processed, which will further refine Talon’s model.
Furthermore, in the compilation of well drilling data to date, Talon has already identified seven historical oil wells that intersected potash mineralization within the Company’s onshore properties. In most wells where potash mineralization has been intersected, there are multiple layers of potash, which have cumulative widths of 35 metres in the Sergi prospect, 38 metres in the Rio do Sal prospect and 46 metres in the Barra dos Coqueiros prospect. In the higher priority prospects, the depths of the potash mineralization varies between 1,167 metres and 1,610 metres.
Stratageo SoluÇıes TecnolÓgicas Ltda (“Stratageo”), a Brazilian based geophysical consultancy with extensive experience in the Sergipe Basin for the oil industry, has been commissioned to acquire some 618 2D-seismic lines within the Sergipe Basin and reprocess selected lines specifically in the vicinity of Talon’s ten onshore project areas. The data from these lines will provide a more accurate definition of the mineralized potash layers, the Ibura evaporite member, and the basin structure. A preliminary interpretation of this data over the Sergi prospect area indicates that the potash layers are flat-lying and laterally continuous with no major disturbances.
In addition, Talon has acquired data from previous regional gravity and magnetic surveys over the area of the Sergipe Basin. This data is being processed by Talon and will be reinterpreted and integrated in to the geological model, along with the drilling and seismic data.
Furthermore, Talon has submitted environmental reports for the Sergi prospect area which will facilitate the granting of operating licences to enable the Company to drill in this area. It is anticipated that these licences will be granted by February 2010. Applications for similar licences are being completed for the Rio do Sal and Barra dos Coqueiros prospects.
The processing, compilation and reinterpretation of the much enlarged data base has extended the Phase I work and delayed the commencement of the proposed drilling program until February 2010, pending receipt of the environmental licences. However the larger data base provides significant benefits. It will result in a more refined model of the priority targets, and over the long term, it should reduce in the amount of drilling required and accelerate the exploration program.
Talon’s exploration programs are being managed by Talon’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is a qualified person within the meaning of National Instrument 43-101. Mr. Ilidio de Brito, who is responsible for the technical material in this release, has verified the data disclosed in this release.
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.
Talon has a treasury of approximately CDN$4.6 million and holds 2,450,000 common shares in Beadell Resources Limited (ASX:BDR). Talon has 24,054,222 common shares outstanding and 30,239,222 shares fully diluted.
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
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: data from 2D-seismic lines within the Sergipe Basin; environmental reports submitted in respect of the Sergi prospect area and related prospective operating licences; and the Company’s proposed 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; the possibility that future exploration results will not be consistent with the Company’s expectations; political developments in Brazil; changes to regulations affecting the Company’s activities; delays in obtaining or failures to obtain required regulatory approvals; the uncertainties involved in interpreting data from 2D-seismic lines; delays in commencing the Company’s proposed drilling program; or 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.