Road Town, Tortola, British Virgin Islands (Feb 21, 2008) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that it has signed a binding Letter of Interest (“LOI”) with Sagitario Serviços Minerais S/C Ltda (“Sagitario”) to acquire a 100% interest in the Barra do França Gold Project (“Barra do França” or the “Project”), located in PiauÍ State on the northeastern region of Brazil. Talon aims to prospect the area to assess the potential of the known gold mineralisation as a bulk mineable near surface target.
In terms of the agreement, Talon will pay;
- US$15,000 to secure the option on the Project and conduct a due diligence review. This initial payment has been made;
- US$85,000 on May 11, 2008; and
- US$150,000 on February 11, 2009 to acquire a 100% interest in the Project.
- Sagitario will retain a royalty of 1% net smelter return (“NSR”) that can be acquired by Talon at any time in the future, through the payment of US$500,000;
- The project will be managed and operated by Brazmin Ltda which is a Brazilian based subsidiary of Talon; and
- Talon reserves the right, at its sole discretion, to withdraw from this agreement at any time.
About the Barra do França Gold Project
The Barra do França Gold Project is located in the southeastern part of the State of PiauÍ, only four kilometres southwest of São João do PiauÍ nickel laterite deposit, which is held by Vale (RIO:NYSE) formerly known as CVRD or Companhia Vale do Rio Doce. The Project is in an area with reasonable infrastructure and consists of an Exploration License (“EL”) of approximately 893 hectares. Subsequent to the LOI Talon has independently applied for and been granted mineral rights to an additional 7,864 hectares in four Exploration Licenses that cover the eastern and western strike extensions to the mineralized zone in the Project, thereby increasing the Project area to 8,757 hectares.
The Project covers part of the Mesoproterozoic Brejo Seco volcano-sedimentary sequence that is divided into two main domains. Domain I is represented by pelitic and chemical metasedimentary rocks and Domain II comprises basic and acid meta-volcanic rocks. The sequence is intruded by differentiated mafic-ultramafic intrusives. The São do PiauÍ nickel laterite deposit occurs on a plateau area on one of these intrusives.
The gold mineralization in the Project is developed in an intensely fractured quartzo-felspathic rock, interpreted as an acid volcanic unit, within Domain II. The mineralization is in wide zones of quartz-carbonate and potassic felspar veins, in which the gold mineralisation is associated with pyrite.
Preliminary exploration has delineated an area, through channel sampling and rock grab sampling, of anomalous gold grades in which the host rock dips at 60 degrees to the northeast and strikes northwest over a distance of 1,420 metres. The anomaly is between 80 and 200 metres wide.
Before signing the LOI, a consulting geologist (on behalf of Talon) undertook a systematic channel sampling survey of the main mineralized zone, and returned results of 39 samples, which included the following intersections:
- 6.59 g/t Au over 10 metres, in YBFC-020
- 3.21 g/t Au over 10 metres, in YBFC-007
- 2.04 g/t Au over 11 metres, in YBFC-029
- 1.25 g/t Au over 5 metres, in YBFC-030
- 0.96 g/t Au over 10 metres, in YBFC-008
- 0.90 g/t Au over 10 metres, in YBFC-016
- 0.81 g/t Au over 10 metres in YBFC-014
In addition to the channel sampling program, 62 grab samples were randomly collected along the mineralized zone, which returned assay results which included the following grades; 19.90, 8.88, 3.16, 2.22, 1.77 and 1.19 g/t Au.
Subsequently Talon has undertaken further exploration to identify the priority targets in the mineralized zone, which has included detailed mapping and an extensive channel sampling program. The results of this due diligence work are expected in March.
Quality Assurance, Quality Control and Qualified Person
Assays from channel and grab samples reported in this news release were analyzed in two separate batches. One batch was analyzed by SGS-Geosol Laboratorio Ltda’s (“SGS”) laboratory in Belo Horizonte-Brazil, with gold being determined by fire assay/atomic absorption with a detection limit of 5ppb Au using 50 gram aliquots. SGS is ISO14001 and ISO 9001:2000 accredited and is independent of Talon. The second batch was analyzed by ALS Chemex’s laboratory in Vancouver, an ISO 9001:2000 and ISO 17025 accredited laboratory which is independent of Talon. These samples were analyzed for gold by fire assay/atomic absorption with a detection limit of 0.001ppb Au and, additionally for a suite of 35 other elements such as silver, copper, lead, zinc, etc. by ICP spectrometry/multi-acid digestion.
Talon’s exploration programs are being managed by Talon’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is qualified person within the meaning of National Instrument 43-101. Mr. Ilidio de Brito, who is responsible for the technical material in this news release, has verified the data disclosed in this news release.
Talon is a TSX-listed company focused on the acquisition, exploration and advancement 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$14 million and holds 4,935,500 common shares of Brazauro Resources Corporation, (TSX-V:BZO) and 2,450,000 common shares in Beadell Resources Limited (ASX:BDR).
For additional information on Talon please visit the Talon’s website at www.talonmetals.com or contact:
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
This press 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 (including, without limitation, statements regarding exploration results, potential mineralization and plans) 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. Forward-looking statements are 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 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, among other things, changes in gold prices, changes in equity markets, political developments in Brazil, changes to regulations affecting the Company’s activities, foreign currency fluctuations, delays in obtaining or failures to obtain required regulatory approvals, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data, and the other risks involved in the gold exploration and development industry. 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 buy . 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.