Talon Metals Corp. [TLO-TSX] released an update Tuesday April 13 on its Tamarack nickel-copper-cobalt project in Minnesota. Highlights include an intersection of semi-massive and disseminated sulphide mineralization in drill hole 20TK0277, which intersected 138.18 metres of grade 1.66% nickel, 1.02% copper (2.26% nickel equivalent NiEq or 6.03% copper equivalent CuEq) starting at 317.5 metres.
Within that interval was 82.5 metres, grading 2.10% nickel, 1.16% copper (2.7% NiEq or 7.2% CuEq) starting at 317.5 metres, including 39 metres, grading 3.12% nickel, 1.60% copper (3.94% NiEq or 10.51% CuEq) starting at 346 metres.
This drill hole was a 25-metre step-out into an undrilled area in the northern portion of the Tamarack Nickel Projectâ€™s current resource area.
News of the drilling update comes after the Talon recently completed an updated preliminary economic assessment (PEA) for the project. Talon can acquire a 60% interest in the property comprising the Tamarack North Project and Tamarack South Project.
Talon kicked off its first drill program as operator of the Tamarack project in 2020 after taking over operatorship from Kennecott Exploration (part of the Rio Tinto Plc [RIO-NYSE] group) in 2019.
â€œThe story of drill hole 20TK0277 is really about higher than expected grades and length,â€ said Brian Goldner, vice-president, exploration at Talon. â€œBased upon historical drilling, we were expecting grades of between 1.2% and 1.8% nickel but instead intersected grades above 3% nickel in the higher-grade core portion of the drill hole,â€ he said.
â€œAdditionally, we were not expecting to hit mineralization in the lower portion of the semi-massive sulphide unit, starting at about 400 metres (referred to as the Lower SMSU).â€
Goldner said this drill hole is expected to have a significant impact on Tamarack. It is expected to increase the grade and length of the semi-massive sulphide unit, which could improve economics for the project.
â€œGoing forward, we plan to follow-up this drill hole with further drilling to the east to see just how much larger the semi-massive sulphide unit can get,â€™â€™ he said. â€œA drill rig has already been mobilized in this area, as this has become another priority for us.â€™â€™
To earn a 51% interest, Talon must spend US$10 million and pay US$11 million in cash and issue 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.Â As soon as Talon owns 60%, Rio Tinto must then fund its 40% stake or dilute. The mining major has no back-in rights.