Talon Metals (TSX: TLO) has released the latest drill results from its Tamarack nickel-copper-cobalt project in Minnesota, 89 km west of Duluth and 210 km north of Minneapolis.
Drillhole 20TK0273 intersected 8.39 metres grading 8.15% nickel, 3.01% copper, 0.19% cobalt, 0.54 gram palladium per tonne, 0.62 gram platinum per tonne, and 0.17 gram gold per tonne (9.83% nickel equivalent or 26.1% copper equivalent) starting from 414.73 metres.
The company noted that the thick intercept of high-grade massive sulphide mineralization was discovered in a zone that historically produced much thinner intercepts.
The drill hole was drilled into the eastern limb of a massive sulphide unit at the project. The eastern limb became a target for the company after strong Borehole Electro-Magnetic (BHEM) geophysical surveys identified off-hole anomalies along a 140-metrer zone of nickel-copper mineralization in November 2020.
“The year is off to an excellent start at the Tamarack nickel project,” Sean Werger, Talon’s president, stated in a press release. “The Tamarack operational team continues to deliver high grades with wide intercepts. “
The company has two drill rigs turning at the project and a third rig is on its way.
The project contains indicated resources of 3.6 million tonnes grading 1.83% nickel, 0.99% copper, 0.05% cobalt, 0.42 gram platinum per tonne, 0.26 gram palladium per tonne, and 0.2 gram gold per tonne (2.45% nickel equivalent). Inferred resources add 4.4 million tonnes grading 1.58% nickel, 0.92% copper, 0.04% cobalt, 0.29 gram platinum, 0.18 gram palladium, and 0.16 gram gold (2.11% nickel equivalent).
This year Talon plans to start a prefeasibility study on the project. An updated preliminary economic assessment in March 2020 envisioned an underground mine producing 4.9 million tonnes of processed ore over eight years at all-in sustaining costs of US$3.57 per lb. of nickel concentrate.
The early stage study estimated initial capex of US$83.33 million and an after-tax payback of 2.5 years. The PEA, which used a nickel concentrate price of US$2.67 per lb., forecast an after-tax net present value of US$291 million, at a 7% discount rate, and an internal rate of return of 36%.
At press time in Toronto, Talon was trading at 56¢ per share within a 52-week trading range of 7.5¢ and 58¢. The company has around 606 million common shares outstanding for a $339.2-million market capitalization.