Talon Metals intersects high-grade nickel, copper outside of Tamarack resource area

Talon Metals (TSX: TLO; US-OTC: TLOFF) has reported high-grade nickel and copper assay results from its Tamarack nickel project in Minnesota. The drill results come from CGO East, an area of 500 metres by 900 metres outside of the nickel project’s defined resource area.

Highlights from eight infill  holes included 6.56 metres grading 2.95% nickel and 1.01% copper starting at a depth of 133.60 metres in hole 22TK0390; and 2.93 metres grading 5.65% nickel and 2.04% copper starting at 264.3 metres in drillhole 21TK0358.

“This new drilling has demonstrated over 600 meters of continuous high-grade nickel-copper sulphide mineralization, with potential to extend an additional 200 meters to the north,” Brian Goldner, the company’s chief exploration officer, said in a press release.

“The company has now completed its infill drilling program, and has already deployed a drill rig well outside of the Tamarack nickel project’s defined resource area with the goal of trying to make a new discovery,” he said.

Talon Metals currently owns 51% of the Tamarack project and has the option to earn up to a 60% stake.

The project has an indicated resource of 3.9 million tonnes grading 1.91% nickel and 1.02% copper; and an inferred resource of 7.16 million tonnes grading 1.11% nickel and 0.68% copper.

Talon Metals team in front of the core shed at the Tamarack nickel-copper-cobalt project in Minnesota. Credit: Talon Metals

“The project currently hosts 341 million lbs of nickel and 197 million lbs  of copper,” Matthew O’Keefe, a mining analyst at Cantor Fitzgerald, wrote in a research note. “Ongoing exploration is extending mineralization in several areas along a 3 km trend near the current resource representing only a fraction of the 18 km ultramafic intrusion. Results to date support our thesis that the resource has good potential to double in 2022.”

O’Keefe also noted that the nickel project “is well-positioned to feed a growing domestic lithium-ion battery and electric vehicle market. A PEA completed in 2021 showed a robust project producing an average of 28.9 million lbs. of nickel and 17.3 million lbs. of copper annually with all-in sustaining costs of $3.01 per lb.”

Under an agreement with Tesla announced in January, the car maker will purchase 165 million lb. of nickel in concentrate over six years. The offer is conditional on Talon earning a 60% stake in the project.

Highlights from assays reported from the CGO East area in October last year included 17.95 metres grading 0.7% nickel and 0.44% copper, starting from 199.5 metres in hole 21TK0305, and 2.58 metres grading 4.26% nickel, 1.89% copper starting at 248.18 metres in hole 21Tk0309.

At press time in Toronto, shares of Talon Metals were trading at 40 cents within a 52-week trading range of 40 cents and 89 cents. The company has 757.08 million common shares for a market cap of $302.8 million.