BASE METALS

Rio partner Talon touts impact of single hole at Tamarack

Potential to add 'significant tonnage and grade'

 Examining drill core at Talon Metals’ Tamarack JV in Minnesota

Examining drill core at Talon Metals’ Tamarack JV in Minnesota

The 25m step-out hole into an undrilled northern portion of the resource area intersected 138.18m at 1.66% nickel and 1.02% copper, or 2.26% nickel-equivalent, or 6.03% copper-equivalent, from 317.5m.

The assays resulted in 27.53m more mineralisation than the 110.65m intercept Talon had announced in February, and was expected to add significant tonnage and grade. 

Vice president exploration Brian Goldner said the result was higher than expected grades and length and in addition, Talon had not been expecting to hit mineralisation in the lower portion of the semi-massive sulphide unit.

"All told, this single drill hole is expected to have a significant impact on the Tamarack nickel project, as it is expected to increase the grade and length of the semi-massive sulphide unit, which could ultimately translate into improved economics for the Tamarack nickel project," He said.

He said Talon planned to follow up with further drilling to the east to test how much larger the unit could get "as this has become another priority for us".

Talon is aiming to grow the project's resource and reduce the timeline to production.

Talon can earn up to 60% of Tamarack under a 2017 agreement, after turning down the option to purchase Rio subsidiary Kennecott Exploration's 81.55% for US$114 million.

The company raised C$34.5 million in March at 60c per unit.

It had released an updated preliminary economic assessment in February which nearly doubled the after-tax NPV to US$569 million in one of three production scenarios.

Initial capex ranged from $316-$553 million depending on whether Tamarack met the needs of the EV battery supply chain or traditional nickel smelters.

Talon shares (TSX: TLO) spiked to a circa 10-year high of C90c in February on news of the thick intercept.

They closed unchanged yesterday at 67c, capitalising it at $456 million (US$364 million).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.