Update Provided on Sergipe Potash Project, Brazil
July 6, 2009
Road Town, Tortola, British Virgin Islands (July 6, 2009) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the granting of two new exploration licences for potash and to provide an update on the Sergipe Potash Project located in Sergipe State, Brazil.
In a news release dated May 25, 2009, the Company announced the acquisition of the Sergipe Potash Project and immediately commenced a detailed review of the available technical data. Subsequently, Talon submitted an application for two additional exploration licences within the potash bearing Sergipe basin, which together comprise a new prospect area, the Ilha das Flores prospect.
The Sergipe Potash Project now comprises seven onshore and two offshore prospects. Talon holds exploration licences for a total area of 21,117 hectares (52,181 acres) and has applications for exploration licences pending for a further 19,150 hectares (47,320 acres). Currently, the Sergi, Rio do Sal and Capela prospects are the most attractive onshore prospects and are the focus of Talon’s exploration program.
“The granting of two new exploration licences for potash enhances our drive to build a significant portfolio of potash projects in Brazil and the technical information we have acquired and reviewed recently from past petroleum exploration is very encouraging,” said Mr. Stuart Comline, President and CEO of Talon. “This is particularly so for the Sergi prospect as the data has confirmed the presence of several potash layers. We will complete the review of the existing data in order to guide our field based exploration program.”
There is a significant amount of technical data on the Sergipe-Alagoas sedimentary basin, generated by the oil and gas industry since 1960. To date, the Company has acquired the logs of 86 historical oil wells within the basin, some of which are strategically located within Talon’s prospect areas.
In addition, the Company is acquiring other existing exploration data, including 2-D and 3-D seismic data, additional drill logs, downhole geophysical profiles and the data from a regional gravity survey. All of this data originated from exploration programs focused on oil and gas and therefore requires reinterpretation in order to apply it to potash exploration. The Company expects to receive all the data by the middle of July 2009 and to complete the evaluation of this historical data by the end of August 2009, which will correspond to the end of Phase I of the exploration program.
Phase II is planned to commence in September 2009 and would include 2-D and 3-D seismic surveys over the most prospective targets, followed by a drilling program, which is currently scheduled to start in November 2009. Talon is in the process of submitting applications for the licences that are required to conduct the Phase II field based program.
Sergi is one of the most attractive prospects and has excellent infrastructure as it is located 37 kilometres southwest of the Taquari-Vassouras potash mine (the only potash mine in Brazil and which is operated by Vale) and 18 kilometres from the town of Aracaju (the capital of Sergipe State).
There are three historical oil wells within this prospect area, which were drilled by Petrobras (a Brazilian oil & gas company) between 1969 and 1991. Oil well 1 FT 0001A SE reportedly intercepted seven discrete potash-bearing layers, composed of sylvinite or sylvinite and carnallite, with widths ranging from 2.0 metres up to 11.5 metres. The combined width of the seven layers represents 35.5 metres of potash mineralization, which were intersected at a depth of between 1,167.5 metres and 1,319 metres.
Wells 1 COL 0001 SE and 1 TC 0001 SE intercepted the evaporite sequence, which hosts the potash mineralization, but the logs only report the intersection of anhydrite and halite. Nevertheless, Talon’s reinterpretation of the downhole geophysical profiles suggests the presence of potash mineralization in both oil wells.
Rio do Sal Prospect
The Rio do Sal prospect is located immediately to north of the town of Aracaju, some 20 kilometres east of the Sergi prospect.
According to the data recorded in this area, there are five wells within the property, of which Talon has accessed log data for three of them to date. Potash mineralization is reported in two oil wells. Well 1 CAU 0002 SE intersected nine potash layers with widths ranging from 1.5 to 13.0 metres, and with a cumulative width of 40.0 metres, between an intersection depth of 1,320 metres to 1,438 metres. Well 1 SC 001 SE intercepted an 18 metre-thick layer of massive carnallite, from a depth of 1,648 metres. The third well investigated by the Company reportedly intersected the evaporate sequence (Ibura Member) but did not report any potash mineralization. A reinterpretation of this data will be undertaken.
The Capela prospect has no existing oil wells within the prospect area, although two wells, located 2.5 and 3.8 kilometres away from the southern and south eastern border of the property respectively, reportedly intersected carnallite mineralization. Of significance, the prospect is within a geophysically defined basin, some 19 kilometers-long and 1.0 to 3.5 kilometres-wide, which is postulated to be the northern extension of Vale’s Miranda potash deposit.
Preliminary modelling by Talon of the evaporate sequence (Ibura Member) suggest that the Capela prospect has potential to hold potash mineralization at depths of less than 1,000 metres.
The acquisition and reinterpretation of oil exploration data in the Sergipe-Alagoas basin will continue until the end of August 2009, with an aim of defining the most attractive targets for potash mineralisation and to delineate the basin structure, based on the reported geology in the well logs and on geophysical interpretations. Particular emphasis will be placed on identifying the more continuous and well developed potash deposits, occurring at the shallowest depths. Much of the reinterpretation is being conducted in association with experienced consultants, Stratageo SARL, and the results of this work will be reported as it becomes available.
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 exploration and development of the Trairåo Iron Project in Par State, 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$18 million and has 92.0 million common shares outstanding and 110.9 million shares on a fully diluted basis.
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