Talon’s new Trairao results

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

On Sept. 20, the company’s shares moved 15¢ to 86¢ before settling at 72¢, a penny up from its previous close. The results came from the project’s target areas 4, 5 and 6, which are on 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 were used to close off the mineralized holes. 

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

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

The company is also 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,” Eddie Scholtz, Talon’s president and CEO, said in a press release. Scholtz took the company’s helm in June.   

Talon added Manoel Carlos Cerquiera as its new chief financial officer in early October. 

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

Talon has $33 million in the bank, 91.8 million shares outstanding and a 52-week trading range between 55¢ on Sept. 20, 2010, and $3.14 on March 29, 2011.