Talon posts new results from Trairao

Talon Metals‘ (TLO-T) stock got a temporary boost today from new drill results from its wholly-owned Trairao iron project in Brazil’s northern Para state.

The company’s shares moved up 15¢ to 86¢, before settling at 72¢, a penny up from its Sept. 19 close. The results came from the project’s target areas 4, 5 and 6, which is the eastern extension of the 18-km-long Trairao ridge that hosts target areas 1, 2 and 3.

As part of its ongoing drill program, Talon had drilled 42 reverse-circulation (RC) holes on target areas 4, 5 and 6, and released assays for 35 holes that hit mineralization. It says the remaining seven holes were used to close off the mineralized holes.

Highlights from the drilling include: 70 metres grading 32% iron, including a 31-metre intercept of 38% iron; 75 metres at 30% iron, including 19 metres at 38% iron; and 54 metres grading 33% iron, including 13 metres at 40% iron.

Since the start of this year, Talon has punched 361 RC and 59 diamond drill holes on the 516-sq.-km Trairao project, which has more than a dozen targets. Currently, the company is diamond drilling areas 1, 2 and 3 with a goal of moving the inferred resource into the indicated category by early 2012. Combined, these three areas host an inferred resource of about 1.1 billion tonnes grading 36% iron.

Simultaneously, the company is wrapping up its first phase of RC drilling on target areas 7 to 13.

“As preliminary stage drilling is nearing completion on all targets, we await the outstanding results of this drilling, which we anticipate will increase the resource base,” said Talon’s president and CEO Eddie Scholtz in a press release. Scholtz took the company’s helm in June of this year.   

Talon will also be adding Manoel Carlos Cerquiera as its new chief financial officer, effective Oct. 1.

By year end, the company expects to compute an inferred resource estimate for target areas 4 to 13, and complete a preliminary economic assessment on Trairao.

Talon has $33 million in its bank and 91.8 million shares outstanding. It has a 52-week trading range of 55¢ (Sept. 20, 2010) to $3.14 (March 29, 2011).