NI 43-101 Indicated Gold Resource of 343,000 Ounces; Additional Inferred Resources of 458,000 Ounces
Road Town, Tortola, British Virgin Islands (Sept 4, 2008) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the results of an updated mineral resource estimate for the 100% owned São Jorge Gold Project in ParÁ State, Brazil. The global mineral resource estimate in the indicated category, for the Wilton Zone at the São Jorge Project is estimated at 343,000 troy ounces of gold, using a 0.5 g/t Au cut-off and calculated to a depth of 260 metres. This is an increase of 79 % from the previously reported 191,000 troy ounces of gold, completed in September 2006, by SRK Consulting (Canada) Inc., to a depth of 100 metres. Furthermore, an additional 458,000 troy ounces of gold is reported in the inferred category.
Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the results of an updated mineral resource estimate for the 100% owned São Jorge Gold Project in ParÁ State, Brazil. The global mineral resource estimate in the indicated category, for the Wilton Zone at the São Jorge Project is estimated at 343,000 troy ounces of gold, using a 0.5 g/t Au cut-off and calculated to a depth of 260 metres. This is an increase of 79 % from the previously reported 191,000 troy ounces of gold, completed in September 2006, by SRK Consulting (Canada) Inc., to a depth of 100 metres. Furthermore, an additional 458,000 troy ounces of gold is reported in the inferred category.
This updated mineral resource estimate for the Wilton Zone at the São Jorge Project has been prepared by Coffey Mining (“Coffey”), an international consulting firm and independent of Talon. The mineral resource estimate undertaken by Coffey was prepared by Mr. Bernardo Viana, who is an employee of Coffey. In Coffey’s opinion the updated mineral resource estimate is compliant with the Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The mineral resource estimate for the Wilton Zone at the São Jorge Project, as prepared by Coffey, is summarized in Table 1.
Table 1 – Wilton Zone at São Jorge Global Mineral Resource Estimate using variable cut-off grades (effective date: September 4, 2008).
|São Jorge Project – Wilton Zone
|Grade Tonnage Report
|Multiple Indicator Kriging Estimate
|10E x 10mN x 2.5mRL Selective Mining Unit*
|Indicated Mineral Resource
|Lower Cutoff Grade (g/t Au)
|Million Tonnes **
|Contained Gold (Kozs)**
|Inferred Mineral Resource
|Lower Cutoff Grade (g/t Au)
|Contained Gold (Kozs)**
* Specification on the size of the blocks used in the block modeling.
** Appropriate rounding has been applied. “Kozs” indicates thousand troy ounces.
“We are pleased with the updated mineral resource estimate for the Wilton Zone and its extensions at São Jorge,” said Mr. Stuart Comline, President and CEO of Talon. “The increase in the gold price since our last resource estimate in 2006 and the results of the additional work completed since then warranted a re-assessment of the resources. It is gratifying to be able to report the significant increase in both indicated and inferred resources at the São Jorge Project, albeit to an increase in the depth limit. Of significance, both Coffey and the Talon management have identified areas in the São Jorge licence which warrants further exploration.”
The resource estimation was based on the available exploration drillhole database which was compiled by Coffey. The database has been reviewed and validated by Coffey prior to commencing the resource estimation study.
Three drilling campaigns were carried out at São Jorge, with a total of 22,761.26 metres in 110 drill holes and the current database includes 12,937 gold assay results.
Based on grade information and geological observations, oxidation and mineralised domain boundaries have been interpreted and wireframes modelled to constrain resource estimation for the São Jorge deposit.
Interpretation and digitising of all constraining boundaries has been undertaken on cross sections orientated at 180∫ (drill line orientation). The resultant digitised boundaries have been used to construct wireframe surfaces or solids defining the three-dimensional geometry of each interpreted feature. The interpretation and wireframe models have been developed using the Gemcom Surpac mine planning software package.
The resulting interpretation identified a series of mineralised zones (denominated as low and high Grade domains) striking 290∞ degrees and dipping almost vertically. Gold mineralization is related to a hydrothermal alteration zone in the monzogranite along a structurally controlled fracture-vein system approximately 700 metres long and 60 metres wide.
Figure 1: High Grade (yellow) and Oxide (brown) wireframes in 3D view.
Resource estimation for the São Jorge mineralisation was completed using MIK (Multiple Indicator Kriging) within Zones 1 and 2. Ordinary Kriging, Inverse Distance Squared and Nearest Neighborhood estimates were also completed within these domains to allow comparison with the post processed etype mean.
The grade estimation was carried out using the Vulcan implementation of the GSLIB kriging algorithms. Calculation of selective mining unit estimates was undertaken using the Coffey developed scripts.
The summarized Resource Statement in Table 1 has been determined as at September 3, 2008 and has been prepared and reported in accordance with NI 43-101 and the classifications adopted by CIM Council. The resource estimate has been classified as an Indicated and Inferred Resource based on the confidence of the input data, geological interpretation, and grade estimation.
Qualified Persons, Quality Assurance/Quality Control and Methodology
Talon’s exploration programs are managed by Talon’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is a “Qualified Person” within the meaning of NI 43-101.
The “Qualified Person”, as such term is defined in NI 43-101, who prepared the mineral resource estimate and other technical information presented in this news release is Mr. Bernardo Viana (Member: AusIMM). Mr. Viana is independent of Talon and an employee of Coffey. Mr. Viana has reviewed and approved the technical information in this news release. Coffey is currently preparing a NI 43-101 technical report, which will be filed on SEDAR within 45 days following the date of this news release.
Gold assays are determined by fire assay/atomic absorption with a detection limit of 5ppb Au using 50 gram aliquots by SGS-Geosol laboratory located in Belo Horizonte, Minas Gerais State, Brazil. SGS-Geosol is ISO14001 and ISO 9001:2000 accredited and is independent of Talon. QA/QC procedures include the submission of systematic duplicates, blanks and standard samples within the sample batches submitted to SGS-Geosol. In addition, SGS-Geosol inserts its own standards and duplicates into each sample batch. The results from these control samples indicate acceptable consistency of analysis. Selected representative pulverized sample duplicates are submitted for referee analyses to ALS Chemex’s laboratory in Vancouver, an ISO 9001:2000 and ISO 17025 accredited laboratory which is independent of Talon.
Specific gravity determinations on the unweathered material were made by SGS-Geosol using sample pulps and a pycnometer apparatus. Pycnometer specific gravity determinations assumed that rock cavities are not a significant factor on the unweathered drill core. Specific gravity measurements for saprolite rock were measured by Talon’s staff by the determination of the mass of dry core and its respective volume.
Coffey carried out a site visit at the São Jorge Project over the period of July 11 to 13, 2008.
About the São Jorge Gold Project
Talon holds 100% of the rights to the São Jorge Project through Licences No. 850.024/2002, No.850.058/2002 and No. 850.275/2003, granted by the Departamento Nacional de ProduÇão Mineral (“DNPM”), to the Company’s wholly owned subsidiary Brazilian Resources Mineracão Ltda (“BRM”). The Company has prospected the area since 2004. There project is subject to legislation common to other mining and exploration projects in Brazil in respect of title, sociopolitical, environmental, taxation as well as possible future marketing aspects.
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.
Additional information with respect to São Jorge is contained in a technical report of SRK Consulting (Canada) Inc. dated October 12, 2006 and entitled “BrazMin Corp.: Resource Estimate and Technical Report for the São Jorge Project, Brazil,” a copy of which has been filed on SEDAR and may be accessed at www.sedar.com.
Talon has a treasury of approximately CDN$12 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 the estimation of mineral resources, future mineral resources and the Company’s exploration plans and objectives) 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, failure to establish estimated mineral resources, changes in gold prices, changes in equity markets, changes to the regulations affecting the Company’s activities, the preliminary nature of metallurgical results, delays in obtaining or failure to obtain required regulatory approvals, uncertainties relating to the availability and costs of financing needed in the future, inflation, political developments, the uncertainties involved in interpreting drilling results and other geological 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.
The mineral resource figures disclosed in this press release are estimates and no assurances can be given that the indicated levels of gold 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 resource estimate included in this press release is well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.
Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability worthy of public disclosure, except in certain limited circumstances set out in National Instrument 43-101. Inferred mineral resources are excluded from estimates forming the basis of a feasibility study.