Talon Metals (TLO-T) got a much needed boost with an initial resource on three target areas at its Trairao iron project in Brazil’s Para State.
The company’s shares jumped 20% to close Nov. 24 at 50¢, and gained another 6% the following day to end at 53¢ a share.
Talon has seen its share price tumble since hitting a high of $3.14 on Mar. 29, before skidding to a 52-week low of 36¢ on Oct. 4.
The inferred resource for target areas 4, 5 and 6 comes at 103 million tonnes grading 29% iron using a 25% iron cut-off grade.
The estimate prepared by Coffey International is based on 42 holes drilled between June and July.
“This resource is in-line with our expectations as target areas 4, 5 and 6 are peripheral extensions to the main resource on target areas 1, 2 and 3, and on which there is not extensive development of oxidized saprock and saprolite in this area,” Eddie Scholtz, Talon’s president and CEO, said in a press release.
The new resource adds 9% to the existing total inferred resource of 1.1 billion tonnes averaging 36% iron for areas 1, 2 and 3.
Talon has two rigs turning on areas 1 to 3 to update the inferred resource into indicated by early 2012. During that time it plans to complete an inferred resource for areas 4 to 13, which it expects to upgrade into the indicated category by mid-2012.
In the second quarter of 2012 Talon Metals also targets completing metallurgical and initial mining and infrastructure studies for Trairao, before finishing a scoping study on its 100%-owned project located in the Greater Carajas mineral province, which produces 26% of Brazil’s iron ore.
In late 2012, Talon anticipates having a prefeasibility study for Trairao in hand. The company describes the 516-sq.-km project as a surface lateritic deposit underlain by banded iron formations (BIF).
On its other Brazilian iron ore exploration project, Inaja South, Talon continues to hit BIF mineralization. So far it has completed 22 holes from its 28-hole program. The other holes should be drilled by year-end, with assays announced in early 2012.
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