Talon eyes district scale potential at U.S. nickel project

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Talon Metals Corp. [TLO-TSX] has outlined an ambitious exploration program for its Tamarack nickel-copper-cobalt project in Minnesota.

“For 2022, we plan to be focused on progressing the Tamarack nickel project towards completion of a pre-feasibility study, while continuing to find new nickel-rich areas along the Tamarack intrusive complex, with the goal of showing that Tamarack has ‘district’ scale potential,” said Brian Goldner, vice-president, exploration for Talon.

Talon said the preliminary economic assessment (PEA) demonstrates that the Tamarack project can produce nickel sulphates for the electric vehicle market, nickel concentrates to be used for refined nickel powders also for the electric vehicle market, or nickel concentrates for the traditional stainless-steel market.

Talon currently has the right to acquire a 60% interest in the property, which consists of the Tamarack North Project and Tamarack South Project, covering 31,000 acres of private land and state leases.

Talon kicked off its first drill program as operator of the Tamarack nickel project in 2020 after taking over operatorship from Kennecott Exploration Co. (part of the Rio Tinto Plc [RIO-NYSE] group) in 2019.

To earn a 51% interest in the project Talon is required to spend US$10 million on exploration and development and pay US$11 million in cash and US$1.5 million worth of shares to Rio Tinto.

To increase its interest to 60%, the company must complete a feasibility study and pay Rio Tinto another US$10 million.  As soon as Talon owns 60%, Rio Tinto must then fund its 40% stake or dilute. The mining major has no back-in rights.

In 2022, in addition to an aggressive infill drill program to progress the Tamarack nickel project towards its prefeasibility study, the company will also turn its focus to a larger area of the Tamarack intrusive complex in the hope of finding additional economically viable nickel and copper massive sulphide mineralization to demonstrate that Tamarack is a nickel-copper district.

It will focus on three high priority areas including the 264 zone where drill hole 18TK024 intersected 0.25 metres of massive sulphide grading 9.95% nickel, and 5.74% copper at 539.04 metres depth approximately 3.0 kilometres northwest of the Tamarack zone.

Meanwhile, the company said it has established an at-the-market equity program that allows it to issue and sell up to $25 million worth of common shares from treasury to the public from time to time at the company’s discretion.

Distribution of the common shares via the ATM program will be made pursuant to the terms of an equity distribution agreement dated December 16, 2021, entered into among TD Securities Inc., BMO Capital Markets, Paradigm Capital Inc. and Sprott Capital Partners LP, as agents for the company.

On December 16, 2021, Talon shares closed at 55 cents. The shares currently trade in a 52-week range of 90 cents and 34 cents.


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