Road Town, Tortola, British Virgin Islands (January 12, 2012) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the results from the reverse circulation (“RC”) drilling carried out over Target Area 8 at its 100% owned Trairão Iron Project, located in ParÁ State, Brazil. This is one of the target areas located north and east of the main Trairão ridge. The main Trairão ridge comprises Target Areas 1 to 3 and Talon has previously reported a cumulative inferred mineral resource estimate of approximately 1.1 billion tonnes at an average grade of approximately 36% Fe, with a cut-off of 25% Fe on these target areas (National Instrument 43-101 compliant).
Target Area 8 is located four kilometres north of Target Area 2 and represents a north west striking ridge, approximately 2,000 metres long and 650 metres wide, underlain by Banded Iron Formation (“BIF”) which is partially overlain by oxidized supergene, enriched mineralization and surficial deposits. This mineralization assemblage is similar to the mineralization that has been drilled on Target Areas 1, 2 and 3, although on Target Area 8, the BIFs are better exposed at surface on the north west slopes.
The RC drilling program conducted over Target Area 8 comprised 22 holes with a total of 1,193 metres drilled on a 200 metre by 200 metre drill grid. Most of the RC holes were drilled vertically, except three holes which were drilled at – 60 degrees. The shallowest drill hole reached 21 metres while the deepest went to a depth of 102 metres. Drill intersections indicated iron grades ranging from 21.5% Fe up to 43.5% Fe.
The thickness of the supergene mineralized zone is up to some 95 metres. Mapping indicates that the primary BIF dips steeply (70-85 degrees) to northeast and has apparent thickness ranging from approximately 60 to 160 metres.
Drill intersections for all the 22 RC drill holes on Target Area 8 are presented in Table 1 in the Appendix of this news release. Highlights of the mineralized intersections are:
- Hole TRC-364 – 75* metres grading 39.0% Fe, including 49 metres grading 46.0% Fe
- Hole TRC-365 – 71* metres grading 37.3% Fe, including 39 metres grading 46.1% Fe
- Hole TRC-377 – 61* metres grading 33.3% Fe, including 15 metres grading 47.8% Fe
- Hole TRC-361 – 58* metres grading 34.6% Fe, including 13 metres grading 54.5% Fe
- Hole TRC-368 – 60 metres grading 30.4% Fe, including 11 metres grading 38.7% Fe
*Mineralization in hole is open at depth
“We are pleased with the results from Target Area 8,” said Mr. Eddie Scholtz, President and CEO of Talon. “We expect to announce the diamond drilling results on Target Areas 1, 2 and 3 during this quarter, and we anticipate that these latest RC and diamond drill results will increase the overall resource base. Talon is fully funded to complete the planned work on the Trairão Iron Project in 2012, as well as for its other projects.”
Geological and analytical data for Target Area 8 will be forwarded to Coffey Mining Ltd. (“Coffey”) who has been engaged by Talon, as independent technical consultants, to prepare a National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate on this target area.
Drilling Update and Outlook
Currently, Talon is continuing to conduct infill and deeper drilling on Target Areas 1, 2 and 3 with an aim to update the mineral resource estimates on these priority target areas, and to continue to drill and investigate the fresh BIF mineralization where results, to date, are encouraging. A total of 89 diamond drill holes have been completed (12,580 metres). The initial diamond drilling results are expected to be announced this quarter.
The preliminary RC drilling program on Target Areas 1 to 13 was completed in October 2011. Based on the assay results now received for RC drill holes on Target Areas 7 and 9 to 13 the Company believes that the potential for extensive iron mineralization on these target areas is low. As such, the Company’s focus will remain on the priority Target Areas 1, 2 and 3 where the bulk of the mineral resource is developed.
The announcement of initial metallurgical results has been postponed due to delays in receiving test results. This announcement is expected during this quarter. The delay is due to additional time being needed to verify the metallurgical results on the saprock zones and to include results from a larger number of samples of the fresh rock or BIF.
Quality Assurance, Quality Control and Qualified Person
All drilling samples have been prepared and analyzed by SGS-Geosol LaboratÓrios Ltda (“SGS”) which is ISO14001:2004 and ISO 9001:2008 accredited and is independent of Talon. Sample preparation was conducted at SGS Parauapebas preparation facility whereas analyses were performed at the SGS laboratory based in Belo Horizonte, Brazil. The samples were analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature.
QA/QC procedures include the submission by Talon of systematic duplicates, blanks and standard samples within every sample batch submitted to SGS. In addition, SGS inserts its own standards, blanks and duplicate samples. The results from these control samples indicate acceptable consistency of analysis.
Talon’s exploration programs are being managed by Talon’s Mining Engineer, Mr. Ricardo Álvares de Campos Cordeiro (MAIG) and Talon’s VP Exploration, Mr. Paulo Ilidio de Brito. Mr. Cordeiro is a “qualified person” within the meaning of NI 43-101 and has reviewed, approved and verified the technical information disclosed in this news release (other than the mineral resource estimate disclosed herein) including sampling, analytical and test data underlying the technical information.
The qualified person who prepared the mineral resource estimate mentioned in this news release is Mr. Bernardo Horta de Cerqueira Viana who is a geologist, independent of Talon and an employee of Coffey. Please refer to Talon’s news release of August 4, 2011 entitled “Talon Metals’ Inferred Mineral Resource Estimate Exceeds 1 Billion Tonnes at the Trairão Iron Project, Brazil” for additional information on this mineral resource estimate. Coffey compiled a NI 43-101 compliant technical report on Target Areas 1, 2 and 3 of the Trairão Iron Project entitled “Third Independent Technical Report on Mineral Resources” dated August 12, 2011 (the “Technical Report”), a copy of which is available under Talon’s SEDAR profile at www.sedar.com. Please refer to the Technical Report for further information on the Trairão Iron Project.
About Trairão Iron Project
The Trairão Iron Project is situated within the Serra da Seringa Archean age greenstone belt, within the CarajÁs Mineral Province in Brazil, which also hosts numerous other iron ore deposits. The Trairão Iron Project comprises eight exploration licences and four applications for exploration licences, for a total area of 76,523 hectares (189,092 acres).
About Talon
Talon is a TSX-listed company focused on the exploration and development of its portfolio of iron projects in 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$21 million and has 92.0 million common shares outstanding and 107.7 million 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: Tel: (416) 361-9636 x 243
Forward-Looking Information
This news 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 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. Such forward-looking statements include, among other things, statements relating to the Trairão Iron Project with respect to estimates in respect of mineral resource quantities, mineral resource qualities, the potential for increasing the Company’s mineral resource base, the potential for upgrading the mineral resource estimates for Target Areas 1, 2 and 3, the preparation of a mineral resource estimate on Target Area 8, the potential for extensive iron mineralization on Target Areas 7 and 9 to 13, and targets, goals, objectives and plans (including the Company’s drilling-exploration plans and plans regarding metallurgical testing, conceptual mining and logistical studies). Forward-looking statements are 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 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, but are not limited to: failure to establish estimated mineral resources, the grade, quality and recovery of mineral resources varying from estimates, 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 drilling and exploration results and other geological data and other factors (including exploration, development and operating risks). 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.
The mineral resource figures disclosed in this news release are estimates and no assurances can be given that the indicated levels of iron will be produced. Such estimates are expressions 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 estimates disclosed in this news release are 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 estimates are inaccurate or are 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.
APPENDIX
Table 1: RC Drilling Intersections for Target Area 8, Trairão Iron Project
| Hole ID | E.O.H.* (m) | From (m) | To (m) | Interval** (m) | Grade*** (% Fe) |
| TRC-361 | 58.00 | 0.00 | 58.00 | 58.00# | 34.56 |
| (including) | 0.00 | 28.00 | 28.00 | 45.05 | |
| (including) | 0.00 | 13.00 | 13.00 | 54.54 | |
| TRC-362 | 78.00 | 0.00 | 60.00 | 60.00 | 29.43 |
| (including) | 0.00 | 16.00 | 16.00 | 36.20 | |
| TRC-363 | 102.00 | 0.00 | 97.00 | 97.00 | 26.63 |
| (including) | 0.00 | 20.00 | 20.00 | 42.30 | |
| TRC-364 | 75.00 | 0.00 | 75.00 | 75.00# | 39.00 |
| (including) | 0.00 | 49.00 | 49.00 | 46.01 | |
| TRC-365 | 71.00 | 0.00 | 71.00 | 71.00# | 37.28 |
| (including) | 0.00 | 39.00 | 39.00 | 46.14 | |
| TRC-366> | 75.00 | 0.00 | 73.00 | 73.00 | 26.45 |
| (including) | 0.00 | 20.00 | 20.00 | 35.73 | |
| TRC-367 | 26.00 | 0.00 | 16.00 | 16.00 | 43.14 |
| TRC-368> | 65.00 | 0.00 | 60.00 | 60.00 | 30.41 |
| (including) | 0.00 | 11.00 | 11.00 | 38.69 | |
| TRC-369 | 76.00 | 0.00 | 29.00 | 29.00 | 32.84 |
| (including) | 0.00 | 11.00 | 11.00 | 44.56 | |
| TRC-370> | 63.00 | 0.00 | 63.00 | 63.00# | 29.70 |
| (including) | 0.00 | 21.00 | 21.00 | 38.12 | |
| TRC-371 | 40.00 | 0.00 | 15.00 | 15.00 | 34.23 |
| (including) | 0.00 | 4.00 | 4.00 | 44.50 | |
| TRC-372 | 32.00 | 0.00 | 19.00 | 19.00 | 43.25 |
| (including) | 0.00 | 5.00 | 5.00 | 52.10 | |
| TRC-373 | 88.00 | 0.00 | 21.00 | 21.00 | 31.22 |
| and | 39.00 | 58.00 | 19.00 | 22.68 | |
| TRC-374 | 21.00 | 0.00 | 21.00 | 21.00# | 43.50 |
| (including) | 0.00 | 10.00 | 10.00 | 49.34 | |
| TRC-375 | 61.00 | 0.00 | 8.00 | 8.00 | 37.96 |
| (including) | 0.00 | 3.00 | 3.00 | 44.05 | |
| TRC-376 | 21.00 | 0.00 | 21.00 | 21.00# | 31.37 |
| (including) | 0.00 | 5.00 | 5.00 | 42.32 | |
| TRC-377 | 61.00 | 0.00 | 61.00 | 61.00# | 33.26 |
| (including) | 0.00 | 15.00 | 15.00 | 47.77 | |
| TRC-378 | 26.00 | 0.00 | 12.00 | 12.00 | 25.74 |
| TRC-379 | 50.00 | 0.00 | 21.00 | 21.00 | 33.71 |
| (including) | 0.00 | 7.00 | 7.00 | 44.39 | |
| TRC-380 | 55.00 | 0.00 | 10.00 | 10.00 | 28.42 |
| and | 17.00 | 34.00 | 17.00 | 23.74 | |
| TRC-381 | 21.00 | 0.00 | 3.00 | 3.00 | 28.90 |
| TRC-382 | 28.00 | 0.00 | 28.00 | 28.00# | 21.49 |
| (including) | 0.00 | 6.00 | 6.00 | 31.55 | |
| Notes:(*) E.O.H. means “End of the Hole”(**) intervals do not represent the true thickness(***) Fe grades are uncut(#) Mineralization open at depth(>) angled drill hole |