Road Town, Tortola, British Virgin Islands (Apr 20, 2010) – Talon Metals Corp., (“Talon” or the “Company”) (TSX: TLO) is pleased to announce that Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH (“Ercosplan”) has completed a Status Report commissioned by Talon on its Sergipe Potash Project in Brazil.
In the Status Report, Ercosplan concluded that there is the potential to delineate through further drilling, potash mineralization on a scale comparable to other current large potash projects elsewhere in the world, while noting that Talon’s Sergipe Potash Project is at an early stage of exploration. In particular, Ercosplan concluded that Talon’s Sergipe Potash Project has the potential to be comparable in size to the mineralization at the nearby Taquari-Vassouras mine operated by VALE*.
In addition, Ercosplan noted in the Status Report that Talon’s potash properties have a number of favourable attributes which, subject to successful further drilling, will impact positively on further project exploration and any development. These attributes include excellent infrastructure, a comprehensive data base and proximity to potash markets.
“Ercosplan’s report identified extensive exploration targets and confirmed the views of Talon’s management that there is justification for further drilling to confirm the mineralization identified to date at the Sergipe Potash Project,” commented Stuart Comline, President and CEO of Talon. “We hope to extend the areas of mineralization elsewhere on our properties, and ultimately define mineral resources within the targets identified.”
Ercosplan has worked with Talon’s management on processing and interpreting the data from 286 previously drilled oil exploration drill holes and 234 line kilometres of 2-D seismic surveys in the Sergipe Alagoas basin, in which Talon’s 12 potash properties are situated. The detailed and comprehensive data review included results from 11 drill holes in which potash mineralization was intersected as either sylvinite or carnallitite, in multiple seams, which are within, or close to, Talon’s properties. Thereafter, Ercosplan independently assessed the geology, basin structure and potash mineralization to identify areas of highest potential and to assist Talon’s management in prioritizing targets for its future exploration program.
Furthermore, Ercosplan inspected about 310 metres of historical drill core from the evaporite sequence hosting the potash mineralization and identified both sylvinite and carnallitite mineralization. The intersections of sylvinite mineralization were either observed in the relogging of the core or interpreted from geophysical logs and identified in six of the drill holes, of which four are located within Talon’s properties. The width of the individual sylvinite layers ranges from two metres up to 10.4 metres. Carnallitite mineralization was identified in the core or geophysically interpreted in seven historical drill holes, of which two are located within Talon’s properties and the balance are located in close proximity to the boundaries of Talon’s properties. The carnallitite mineralization was logged both as a discreet carnallitite layer with widths varying from 15 to 45 metres and/or carnallitite interlayered with rock salt, with cumulative carnallitite widths from 18 to 66 metres.
Based on the available data from existing drill holes and geological modeling, Ercosplan estimated the order of magnitude of exploration target sizes that may be anticipated within Talon’s properties, subject to further successful drilling. These estimates included up to approximately 450 million tonnes of sylvinite mineralization and up to approximately 1.1 billion tonnes of carnallitite mineralization*. A number of individual targets have been identified as priority prospects based on the distribution of the potential potash mineralization and these prospects will be the priority for the forthcoming drilling program at Talon’s Sergipe Potash Project.
The exploration program proposed by Ercosplan for Talon’s Sergipe Potash Project is divided into three stages as follows.
Stage 1: Confirmatory drilling of known mineralization
Stage 2: Step out drilling to extend the mineralization
Stage 3: Evaluation drilling to determine mineral resources
Talon is currently adjudicating quotations from four major drilling companies for the Stage 1 exploration drilling program on the priority prospects. This drilling program is expected to commence as soon as possible.
*The potential quantity of potash is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The basis on which the potential quantities of target mineralization disclosed has been determined based on sylvinite and carnalitite logged in drill holes or identified in down hole geophysical logs and applying an area of influence of 1,500 metres around the individual mineralized drill holes within the Talon properties. No grades have been provided as Talon has not been able to undertake independent reassaying of the core and therefore the estimated quantities do not represent a reliable mineral resource in accordance with international practice. Further drilling and assaying is required to confirm the historical data.
Figure 1 – Location of Talon’s potash targets in Sergipe-Alagoas Basin
About Talon’s Sergipe Potash Project
The Sergipe Potash Project is located on the northeastern coast of Brazil, near the coastline town of Aracaju, the capital of Sergipe State. This project now comprises 66 exploration licences, divided into 12 targets, over a total area of 91,948 hectares (227,207 acres). In addition, Talon has 22,392 hectares (55,332 acres) under application for exploration licences. Together this area totals 114,340 hectares (282,539 acres), an increase from the Company’s last reported figure of 112,036 hectares.
Qualified Person
Mr. Paulo Ilidio de Brito (Member: AusIMM), who is Talon’s VP Exploration and a “qualified person” within the meaning of National Instrument 43-101, has reviewed and approved the technical information included in this news release.
This news release has also been reviewed and approved by Ercosplan.
About Talon
Talon is a TSX-listed company focused on the acquisition, exploration and development of high quality mineral 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$4 million and has 63,877,950 common shares outstanding and 67,062,950 shares fully diluted.
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
Email: ebelling@taucapital.com
About Ercosplan
Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH (“Ercosplan”) is an independent international consulting and engineering company with more than 50 years of experience in the potash and mineral salt industry.
For additional information on Ercosplan visit www.ercosplan.com
Forward-Looking Information
This news release contains certain “forward-looking information”. All information, other than information pertaining to historical fact, which addresses activities, events or developments that Talon believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information reflects the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking information includes, among other things, statements relating to Ercosplan’s conclusions and estimates regarding the potential of the Company’s Sergipe Potash Project based on Ercosplan’s interpretation of the historical exploration information, potential mineralization, potential mineral resources and the Company’s exploration plans and objectives with respect to its Sergipe Potash Project.
Forward-looking information is 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 information, 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: risks related to the exploration stage of the Company’s Sergipe Potash Project, the possibility that future exploration results will not be consistent with the Company’s expectations, uncertainties relating to the availability and costs of financing needed in the future, changes in potash prices, failure to delineate mineral resources at the Sergipe Potash Project, political developments in Brazil, changes to regulations affecting the Company’s activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting exploration results and other geological data and the other risks involved in the natural resource exploration business.
Forward looking information 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 forward-looking information, whether as a result of buy . Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.