Road Town, Tortola, British Virgin Islands (Oct 6, 2011) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the following positive results from the sampling of three trenches at its 100% owned Inajá South Iron Project in Pará State, Brazil. The Inajá South Project includes well developed Archean age banded iron formations (“BIFs”) which extend for nine kilometres within Talon’s licence area. These BIFs are the source of one of the more prominent aeromagnetic anomalies within the Inajá greenstone belt, which is a relatively new target area for iron ore exploration. The rights to the surrounding greenstone belt areas, with further BIFs, are held by a joint venture between Vale S.A. and Aura Minerals Inc.
Talon’s three trenches were excavated to depths of approximately two metres through the steeply dipping BIFs and adjacent cherts, mafic and ultramafic rocks. Trench 1 is 2,200 metres from Trench 2, and Trench 2 is 2,800 metres from Trench 3. Highlights of the trench intersections are:
|Trench 1||81.5 metres at an average of 40.3% Fe|
|Trench 2||252.1 metres at an average of 39.2% Fe|
|Trench 3||103.9 metres at an average of 35.0% Fe|
“These results are very encouraging and indicate the BIFs to be more extensive and of a higher grade than we had anticipated,” said Mr. Eddie Scholtz, President and CEO of Talon. “The Inajá South Project is exceeding our expectations and brings additional value to Talon’s portfolio of iron ore projects.”
The iron mineralization in the trenches is mostly associated with BIFs and to a lesser extent with surficial deposits. The BIFs are oxidised at surface and consist of hematite (after magnetite) interbanded with minor cherts and within mafic to ultramafic country rocks, comprising chlorite sericite schists, talc schists and serpentinites. The complete results of the trench sampling are presented in Table 1 and Figure 1 of the Appendix.
Recently, the initial mapping, trenching and sampling program has been completed at the Inajá South Project. A preliminary drilling program (16 holes and 1,250 metres) is expected to begin in the next week and be completed by the end of December 2011. In addition, preliminary metallurgical testwork on the mineralized trench samples is underway.
Quality Assurance, Quality Control and Qualified Person
All trench channel samples were prepared and analyzed by Intertek Brasil Inspeções Ltda (“Intertek”), a company that is ISO14001:2004 and OHSAS 18001:1999 accredited and is independent of Talon. Sample preparation was conducted at Intertek’s preparation facility at Parauapebas, Brazil, whereas analyses were performed at the Intertek laboratory based in Rio de Janeiro, Brazil. The trench samples were analyzed by fusion with lithium tetraborate-XRF for Fe2O3, SiO2, P2O5, Al2O3, MnO, CaO, MgO, TiO2, Na2O, K2O, Cr2O3 and retained moisture (LOI) by multi-temperature by calcination at 1000°C. Intertek inserted standards, blanks and duplicate samples as part of its QA/QC procedures.
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 (Member: AusIMM). Mr. Cordeiro is a “qualified person” within the meaning of National Instrument 43-101 and he has reviewed, approved and verified the technical information disclosed in this news release, including sampling, analytical and test data underlying the technical information.
About the Inajá South Iron Project
The Inajá South Iron Project is located in Pará State, Brazil, 120 kilometres south of Talon’s Trairão Iron Project. This project covers an area of 6,577 hectares on the Inajá greenstone belt. Within Talon’s licence area in the Inajá greenstone belt, an Archean age BIF is developed along a prominent ridge over a strike length of nine kilometres. The principal target is the BIF, which is similar to the targets currently being explored by other companies on adjacent licence areas.
Talon is a TSX-listed company focused on the exploration and development of its portfolio of iron projects in Brazil. At the Trairão Iron Project, drilling for mineral resources, as well as metallurgical testwork and various mining, marketing and infrastructure studies are ongoing. 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$27 million 91.8 million common shares outstanding and 107.9 million shares on a fully diluted basis.
For additional information on Talon please visit the Company’s website at www.talonmetals.wpengine.com or contact:
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
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 Company’s plans and expectations regarding the Inajá South Iron Project (including the Company’s preliminary drilling program and the timing thereof, as well as the initial preliminary economic assessment currently anticipated). 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: the possibility that future exploration results will not be consistent with the Company’s expectations, the uncertainties involved in interpreting drilling and exploration results and other geological data and other factors (including exploration, development and operating risks), failure to establish mineral resources or reserves, the grade, quality and recovery of mineral resources varying from estimates, risks related to the exploration stage of the Company’s properties, 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 and delays in obtaining or failures to obtain required regulatory approvals. 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.
|Table 1: INAJÁ SOUTH IRON PROJECT – TRENCH SAMPLING RESULTS|
|Rock Type||Metres*||% Fe (average)|
|TRENCH 1, Length of Trench 193 metres|
|TRENCH 2, Length of Trench 473 metres|
|TRENCH 3, Length of Trench 349 metres|
|Zone 1 (extension)||BIF||61.15||29.28|
|*intervals do not represent the true widths|
Figure 1: Trench Sampling Results, Inajá South Iron Project, Brazil