Tamarack Project
Nickel-Copper-PGE
TAMARACK
January 2016
www.talonmetals.com
TSX: TLO
Conditions of Presentation
• This presentation has been prepared by Talon Metals Corp. (“Talon” or the “Company”) and is being delivered for informational
purposes only. The information contained herein may be subject to updating, completion, revision, verification and further
amendment. Except as may be required by applicable securities laws, Talon disclaims any intent or obligation to update any
information herein, whether as a result of new information, future events or results or otherwise. Neither Talon nor any of its
shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether
direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of
the information or for any errors, omissions or misstatements or for any loss, howsoever arising from the use of this
presentation.
• This presentation should not be considered as the giving of investment advice by Talon or any of its shareholders, directors,
officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own
independent assessment of Talon after making such investigations and taking such advice as may be deemed necessary. In
particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective
judgment, analysis and assumption and each recipient should satisfy itself in relation to such matters. Neither the issue of this
presentation nor any part of its contents is to be taken as any form of commitment on the part of Talon to proceed with any
transaction and Talon reserves the right to terminate any discussions or negotiations with prospective investors. In no
circumstances will Talon be responsible for any costs, losses or expenses incurred in connection with any appraisal or
investigation of Talon.
• This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any
offer to subscribe for or purchase any securities in Talon, nor shall it, or the fact of its distribution, form the basis of,
or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever
with respect to such securities.
TAMARACK
2
Forward Looking Information
• This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact that address activities, events or
developments that Talon believes, expects or anticipates will or may occur in the future are forward looking statements. These forward-looking statements reflect
the current expectations or beliefs of Talon based on information currently available to Talon. Such forward-looking statements include, among other things,
statements relating to future exploration potential, drilling and the timing thereof at the Tamarack Project, and more specifically, the potential extension and
continuation of the MSU to the north of drill holes 14TK0211 and 15TK0219, the potential extension of the MSU to the northeast and to the southeast and
northward of the 138 Zone, the potential for continuous mineralization along strike in the 221 Zone, the prospectively of the 164 Zone, 142 Zone and the “Neck”,
the timing of the 2016 winter exploration program, the amount to be spent over the next two years on exploration at the Tamarack Project, the opex of high
probability projected expansion projects, Kennecott Exploration Company’s (“Kennecott”) willingness to grant Talon the right to purchase the balance of the
Tamarack Project and Talon’s willingness or ability to complete such purchase, the Company’s expectations with respect to its financial resources, securities and
royalties, and targets, opex, capex, goals, objectives and plans and the timing associated therewith.
• Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause the actual results to differ materially from those
discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on Talon. Factors that could cause actual results or events to differ materially from current expectations include, but are
not limited to: changes in commodity prices, including nickel; changes in interest rates; risks inherent in exploration results, timing and success, including
changes in the exploration program by Kennecott and the failure to identify mineral resources or mineral reserves; the uncertainties involved in interpreting
DHEM surveys, drilling results and other geological data; inaccurate geological and metallurgical assumptions (including with respect to the size, grade and
recoverability of mineral reserves and resources); uncertainties relating to the financing needed to further explore and develop the properties or to put a mine into
production; the costs of commencing production varying significantly from estimates; unexpected geological conditions; changes in power prices; unanticipated
operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials,
equipment and third-party contractors, inability to obtain or delays in receiving government or regulatory approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and environmental matters); political risk, social unrest, and changes in general economic conditions or
conditions in the financial markets.
• Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Talon disclaims any
intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Talon
believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
• This presentation contains certain statistical, market and industry data obtained from government or other industry publications and Talon management’s
knowledge of, and experience in, the markets in which Talon operates. Government and industry publications and reports generally indicate that information has
been obtained from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. None of the authors of such
publications and reports has provided any form of consultation, advice or counsel regarding any aspect of, or is in any way whatsoever associated with, the
Tamarack Project. Further, certain of these organizations are participants in, or advisors to participants in, the mining industry, and they may present information
in a manner that is more favourable to the industry than would be presented by an independent source. Actual outcomes may vary materially from those forecast
in such reports or publications, and the prospect of material variation can be expected to increase as the length of the forecast period increases. While Talon
believe this data to be reliable, market and industry data is subject to variations and cannot be verified with complete certainty due to limits on the availability and
reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Talon has not
independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such
sources.
TAMARACK
3
Technical Reference
• The mineral resource figures disclosed in this presentation are estimates and no assurances can be given that the indicated levels of
nickel, copper, cobalt, platinum, palladium and gold will be produced. Such estimates are expressions of judgment based on knowledge,
mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when
new information becomes available. While the Company believes that the resource estimates disclosed in this news release are well
established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may
ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the
Company.
• Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are
estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic
parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied
to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to
mineral reserves through continued exploration.
• The “Qualified Person”, as such term is defined in NI 43-101, who prepared the mineral resource estimate in this presentation is Mr. Brian
Thomas (P.Geo.), who is a geologist independent of Talon and an employee of Golder Associates (“Golder”). Mr. Thomas has reviewed
and approved the technical information in this presentation relating to the mineral resource estimate, including sampling, analytical and
test data underlying such information. For further information, please refer to the technical report entitled “First Independent Technical
Report on the Tamarack North Project, Tamarack, Minnesota” dated October 6, 2014 (“Tamarack Technical Report”) prepared by
independent “Qualified Persons” Brian Thomas (P. Geo) of Golder, Paul Palmer (P. Eng) of Golder and Manochehr Oliazadeh Khorakchy
(P. Eng) of Hatch Ltd. Copies are available on www.talonmetals.com or on SEDAR at www.sedar.com.
• Mike Shaw, Vice President, Exploration of Talon and James McDonald, Vice President, Resource Geology of Talon are both “Qualified
Persons” within the meaning of NI 43-101. Messrs. McDonald and Shaw are satisfied that the processes used by Kennecott at the
Tamarack Project are standard industry operating procedures and methodologies, and they have reviewed, approved and verified the
technical information disclosed in this presentation (other than the mineral resource estimate), including sampling, analytical and test data
underlying such technical information.
• Where “NiEq” is used in this presentation it was calculated based on the following formula using Talon’s long term metal price
assumptions: NiEq% = Ni%+ Cu% x 2.91/9.20 + Co% x 14/9.20 + Pt [g/t]/31.103 x 1,400/9.2/22.04 + Pd [g/t]/31.103 x 600/9.2/22.04 +
Au [g/t]/31.103 x 1,300/9.2/22.04
TAMARACK
4
Experienced Management Team
with a Track Record Of Project Delivery
Warren Newfield
(Executive Chairman)
•
•
•
•
Founded Platexco (platinum exploration) in 1997, sold to Impala in 2000 for C$191MM
Founded AfriOre Ltd. (platinum exploration) in 2001, sold to Lonmin in 2007 for C$496MM
Founded CIC Energy Corp. (coal exploration) in 2005, sold to Jindal Group in 2012 for C$116MM
Named as one of the most influential people in South Africa's mining industry in 2008
Henri van Rooyen
(CEO)
•
•
•
•
•
Manages exploration project evaluation, integration and development, 15 years in mining industry
Founded largest silica mine in South Africa, sold to South African mining group
Created one of South Africa's largest offshore diamond exploration projects, sold to a private Swiss group
Developed nickel, coal, CBM, gold, potash & iron ore exploration projects from inception to exit in Botswana, Ivory Coast, South Africa & Brazil
Chartered Accountant
Sean Werger
(President)
• Manages commercial negotiations, M & A activity, legal and investor relations matters
• Ten years in mining industry
• Managed M &A activity of nickel, coal, CBM, gold, potash & iron ore exploration projects from inception to exit in Botswana, Ivory Coast,
South Africa & Brazil
• Previously a litigator with Lax, O’Sullivan Scott
• LL.B/MBA
Platexco
Talon Metals
Vince Conte
(CFO)
• Ten years of mining industry experience
• Previously a Senior Manager with Deloitte & Touche, LLP, practicing in the financial advisory group with a focus on mining
• Holds CA, CFA and CBV designations
Mike Shaw
(VP Exploration)
• Exploration Geologist with more than 25 years mining industry experience
• One of Talon’s “Qualified Person’s” in accordance with National Instrument 43-101
• Previously a Geological Consultant with Geo-Consult International and an Exploration Geologist for JCI Limited
James McDonald
(VP Resource Geology)
• Resource Geologist with more than 20 years mining industry experience
• One of Talon’s “Qualified Person’s” in accordance with National Instrument 43-101
• Previously a Senior Resource Geologist with Golder Associates, and held positions with Barrick Gold and Inco/Vale
Dr. Etienne Dinel
(VP Geology)
•
•
•
•
Dr. Tony J. Naldrett
(Director)
• One of the leading experts in the world on magmatic (nickel, copper and platinum-group element) sulphide mineralization
• Previously consulted for Chevron Corporation, Falconbridge Ltd., Western Mining Corporation, BHP Billiton, Rio Tinto Group and Voisey's Bay
• Professor Emeritus at the University of Toronto
5 TAMARACK
Geologist with more than 10 years mining experience
Geoscientist specializing in Structural Geology, Petrology and Geochemistry of ore deposits
Previously spent 7 years in academia as a Term Lecturer in Structural Geology at the University of Toronto
PH.D in Economic Geology
5
EXECUTIVE SUMMARY
TAMARACK
6
Executive Summary
“We are one of the few junior exploration companies that is fully funded with
the ability to progress exploration on an expedited basis”
Henri van Rooyen, CEO, December 29, 2015 Press Release
•
Talon currently owns an 18.45% interest in the Tamarack Ni-Cu-PGE Project (includes
the Tamarack North Project and the Tamarack South Project), located in Minnesota,
USA
•
Talon has no further funding obligations to earn its interest in the Tamarack Project
•
The remaining 81.55% interest is owned by Talon’s partner, Kennecott Exploration
Company, a subsidiary of the Rio Tinto Group
•
Kennecott is currently the operator of the Tamarack Project, with meaningful technical
and strategic input from Talon through a joint Technical Committee
•
Approximately US$15 million is expected to be spent on exploration activities over
the next two years (excluding project overheads)
TAMARACK
7
Executive Summary - Continued
•
In April 2015, Talon Metals announced an updated mineral resource estimate on the
Tamarack North Project, with:
•
3.75 million tonnes in the indicated category at 2.35% Ni Eq; and
•
An additional 3.4 million tonnes in the inferred category at 2.11% Ni Eq
•
The inferred resource includes a high grade Massive Sulphide Unit (MSU) of 422,000
tonnes @ 7.26% NiEq
•
The mineralized zone (known as the Tamarack Zone) comprises less than 10% of the
total strike
•
There remains significant growth potential at Tamarack:
a) Through resource expansion within the known mineralized zone (the
Tamarack Zone); and
b) Talon and Kennecott have already identified new mineralized zones
kilometers away from the known mineralized zone (see discoveries made in
the 480 Zone, 221 Zone and 164 Zone)
TAMARACK
8
COMMERCIAL TRANSACTION
WITH KENNECOTT
TAMARACK
9
Talon Owns an 18.45% Interest in the Tamarack Project
• Talon spent a total of US$25.5 million to earn an 18.45% interest in the Tamarack
Project, with all of the funds advanced being used to fund exploration expenditures, a
one-time US$1 million upfront payment to Kennecott and certain land acquisitions
• Talon has no further funding requirements to earn its interest in the Tamarack Project
• Kennecott Exploration Company, a subsidiary of the Rio Tinto Group, is currently the
operator of the Tamarack Project, with meaningful technical and strategic input from
Talon through the joint Technical Committee
• Once Kennecott has spent the US$15 million advanced by Talon, Talon/Kennecott
will either participate in a 81.55/18.45 JV or Talon will buy-out KEX at a predetermined purchase price (see next slide for further details)
• As of December 31, 2015, Kennecott had spent a total of approximately US$10.5
million of the US$25.5 million advanced by Talon
TAMARACK
10
Future Optionality
Once Kennecott has spent the US$25.5 million advanced by Talon,
Talon/Kennecott will either participate in a 81.55/18.45 JV or Talon will buy-out
KEX at a pre-determined purchase price
KEX (81.55%)
[180 Days]
NO
YES • KEX 81.55%: TALON 18.45%
• KEX Operator
• Fund or Dilute
• JV Min Exploration $6.15M p.a.
• Mutual ROFR
TALON
[45 Days]
YES
• 18 Month Option ($14m)
• Talon May Explore
• Talon Keeps Properties in
Good Standing
• Mutual ROFR
NO
• KEX 81.55%: TALON 18.45%
• KEX Operator
• Fund or Dilute
• Mutual ROFR
• Drag plus Tag
YES
• Talon pays $100M for 81.55%
TAMARACK
11
THE TAMARACK PROJECT
TAMARACK
12
Tamarack Project: Excellent Infrastructure with Grid
Power and a Railway Line on Site
The Tamarack Project is located adjacent to the town of Tamarack in
north-central Minnesota approximately 85 km west of Duluth and 200 km
north of Minneapolis, in Aitkin and Carlton Counties
Tamarack Igneous
Complex (TIC)
(Magnetic 1VD Image)
Power Line
Tail
Tamarack Zone
Railway
Neck
2 km
Bowl
Rail Lines
TAMARACK
13
The Tamarack Igneous Complex is
Extremely Large – 18km of Strike Length
The Tamarack Igneous Complex (TIC) is comparable in footprint size to
some of the world’s largest and most prolific nickel-copper-platinum
intrusive complexes
TAMARACK
14
TAMARACK NORTH PROJECT
TAMARACK
15
Tamarack North Project
- Hosts the Tamarack Zone that
contains an independent
mineral resource estimate
(see slides 18 and 19)
Platexco
- Most drilling has been
Talon Metals
focused on the Tamarack Zone
- In addition, a number of drill
targets have been defined
along strike
16 TAMARACK
16
The Tamarack Zone:
Defined Mineral Resource in SMSU, MSU and 138 Zone
Platexco
17 TAMARACK
Talon Metals
17
Mineral Resource Estimate (Effective April 3, 2015)1
•
Successful 2014 drilling of the step-out holes from the MSU resulted in a 167%
increase in the inferred resource tonnage in the MSU
•
Inferred resource tonnage in the MSU increased to 422,000 tonnes @ 7.26% NiEq
SMSU
Indicated
3,751
1.81
1.00
0.05
0.41
0.25
0.19
2.35
Lbs
NiEq*
(000,000)
194.3
SMSU
Inferred
949
1.12
0.62
0.03
0.25
0.16
0.14
1.47
30.8
MSU
Inferred
422
6.00
2.48
0.13
0.78
0.53
0.26
7.26
67.5
138
Inferred
2,012
0.95
0.78
0.03
0.23
0.14
0.17
1.33
59.0
Total
Indicated
3,751
1.81
1.00
0.05 0.41 0.25 0.19 2.35
194.3
Total
Inferred
3,383
1.63
0.94 0.04 0.31 0.19 0.17 2.11
157.4
Tonnes
Domain Classification
(000)
Ni
(%)
Cu
(%)
Co
(%)
Pt
(g/t)
Pd
(g/t)
Au
(g/t)
NiEq
*(%)
resources reported above a 0.9% Nickel Equivalent (“NiEq”) cut-off. Mining recovery and dilution factors have not been applied to the estimates; Tonnage
estimates are rounded down to the nearest 1,000 tonnes; Estimates do not include metallurgical recovery; % = percent; g/t = grams per tonne
1All
*NiEq was calculated based on the following formula using Talon’s long term metal price assumptions:
NiEq% = Ni%+ Cu% x 2.91/9.20 + Co% x 14/9.20 + Pt [g/t]/31.103 x 1,400/9.2/22.04 + Pd [g/t]/31.103 x 600/9.2/22.04 + Au [g/t]/31.103 x 1,300/9.2/22.04
For further information, please refer to the Technical Reference slide of this presentation and Talon’s news release dated April 8, 2015 entitled “Talon Metals
Announces 167% Increase in Tonnage for the Inferred Massive Sulphide Resource, and an Increase in Grade from 6.42% to 7.26% NiEq in the Massive Sulphide
Unit at Tamarack” which is available at www.talonmetals.com or www.sedar.com.
TAMARACK
18
Mineral Resources and Grades at Various cut-off
Grades (Effective April 3, 2015)1
NiEq*
Cut-Off
(%)
0.8
0.9
1.0
1.5
2.0
2.5
Classification
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Tonnes
(000)
Ni (%)
Cu
(%)
Co
(%)
Pt
(g/t)
Pd
(g/t)
Au
(g/t)
NiEq*
(%)
3,922
4,235
3,751
3,383
3,556
2,646
2,699
1,289
1,990
752
1,459
556
1.75
1.42
1.81
1.63
1.87
1.89
2.19
2.98
2.51
4.21
2.81
5.12
0.97
0.84
1.00
0.94
1.03
1.07
1.16
1.49
1.28
1.89
1.38
2.16
0.05
0.04
0.05
0.04
0.05
0.05
0.06
0.07
0.06
0.09
0.07
0.11
0.40
0.28
0.41
0.31
0.41
0.34
0.42
0.48
0.42
0.60
0.41
0.69
0.25
0.17
0.25
0.19
0.26
0.22
0.27
0.31
0.27
0.40
0.27
0.47
0.19
0.15
0.19
0.17
0.20
0.18
0.20
0.22
0.20
0.24
0.19
0.25
2.28
1.86
2.35
2.11
2.42
2.43
2.80
3.73
3.17
5.17
3.51
6.22
1Cut-off
grades are listed in the left hand column; Mining recovery and dilution factors have not been applied to the estimates; Tonnage estimates are rounded
down to the nearest 1,000 tonnes; Estimates do not include metallurgical recovery; % = percent; g/t – grams per tonne
*NiEq was calculated based on the following formula using Talon’s long term metal price assumptions:
NiEq% = Ni%+ Cu% x 2.91/9.20 + Co% x 14/9.20 + Pt [g/t]/31.103 x 1,400/9.2/22.04 + Pd [g/t]/31.103 x 600/9.2/22.04 + Au [g/t]/31.103 x 1,300/9.2/22.04
For further information, please refer to the Technical Reference slide of this presentation and Talon’s news release dated April 8, 2015 entitled “Talon Metals
Announces 167% Increase in Tonnage for the Inferred Massive Sulphide Resource, and an Increase in Grade from 6.42% to 7.26% NiEq in the Massive Sulphide
Unit at Tamarack” which is available at www.talonmetals.com or www.sedar.com.
TAMARACK
19
Tamarack Zone: Updated Mineral Resource
included Expansion of the MSU
2014 Exploration Results of the MSU in the Tamarack Zone, demonstrate
continuity of the MSU1:
•
14TK0211 intersected two intercepts of massive sulphide mineralization:
• the upper unit from 425.03 to 429 meters of 3.97 meters at 5.74% Ni,
2.07% Cu, 1.08 g/t PGEs and 0.10 g/t Au (6.80% NiEq); and
•
•
the lower unit from 441 to 456.94 meters of 15.94 meters at 7.14% Ni,
2.43% Cu, 1.49 g/t PGEs and 0.39 g/t Au (8.49% NiEq).
14TK0213 similarly intersected two intercepts of massive sulphide
mineralization:
• an upper unit from 435.66 to 443.35 meters of 7.69 meters at 5.09% Ni,
2.22% Cu 1.37 g/t PGEs and 0.31 g/t Au (6.26% NiEq); and
•
a lower unit from 455.06 to 464.71 meters of 9.65 meters at 7.04% Ni,
2.43% Cu, 1.99 g/t PGEs and 1.03 g/t Au (8.60% NiEq).
a list of all holes and associated drill and assay data see Talon’s Press
Release dated January 15, 2015
1 For
TAMARACK
20
Tamarack Zone – Further Potential for Expansion
of MSU
•
MSU targets have been identified based on well defined
downhole electromagnetic (DHEM) conductors, geology
and geochemistry and represent additional near term
potential resources in the Tamarack Zone area.
•
Drill holes14TK0211 and 14TK0213 demonstrated the
potential continuity of the MSU along a trend to the northeast of the SMSU and drill hole 15TK0219 was included in
the winter programme to follow-up conductors along this
trend. Results from 15TK0219 included 3 intersections of
massive Ni-Cu-PGE mineralization, including 0.61 meters
@ 10.05% Ni, 5.78% Cu, 27.46 g/t PGEs, 1.93 g/t Au
(17.91% NiEq)
•
A number of DHEM conductors have confirmed the
extension of this trend to the north-east (see MPS-219-1,
MPS 163-1, MPS-213-2)
•
DHEM anomalies also point to potential extensions of
MSU striking southeast towards the MSU at the base of
the 138 Zone (see MPS 194-1)
•
A DHEM plate at the base of the 138 Zone suggests
massive Ni-Cu-PGE mineralization continues northward
(see MPP 171-1)
TAMARACK
Plan Map – MSU and its Relationship to the DHEM Plate Anomalies
Long Section (looking west) – MSU and its Relationship to the DHEM Plate Anomalies
21
2015 Exploration1
In 2015, a total of 17 holes were drilled,
comprising 9900 meters
• Tamarack North Project (14 holes)
• Tamarack South Project (3 holes)
The main focus of 2015 was to test new targets
along strike in large step-outs
a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1 For
TAMARACK
22
480 Zone
•
Potentially shallow target 3 to 4.5 km north of the
Tamarack Zone. Previous drilling has intersected
wide zones of disseminated mineralisation at depths
40-75m.
•
Drill holes 15TK0215 and 15TK02251 were drilled
approximately 3 km north of the Tamarack Zone
Talonprominent
Metals magnetic anomalies.
targeting
Platexco
•
•
Drill hole 15TK0225 intersected nickel-copperPGE sulphide mineralization at the base of the
FGO/mixed zone (MZ) type intrusion, including
0.49 meters at 335m depth assaying 1.15%
Ni, 0.55% Cu, 0.15 g/t PGEs and 0.04 g/t Au,
(1.42% NiEq).
The promising results to date indicate potential
exists over a large area that requires more work to
focus drilling.
a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1For
TAMARACK
23
221 Zone
Platexco
24 TAMARACK
Three holes were drilled,15TK0221,
15TK0228 and 15TK0229, and
Talon Metals
represent
a newly discovered
massive sulphide zone that is a
priority target
24
221 Zone Results – New Mineral Zone Discovery1
• Drill hole 15TK0221 intercepted massive nickel-copper-PGE sulphide mineralization
approximately 1.6 km north of the Tamarack Zone, with an associated DHEM off-hole anomaly
located approximately 80 to 100 meters to the northwest of the hole.
• Drill hole 15TK0228 did not intersect the targeted conductor but the follow-up DHEM survey
provided additional EM data for 3D modelling of the DHEM conductors that allowed more
precise targeting for follow-up drill hole 15TK0229.
• Drill hole 15TK0229 intercepted 9.88 m of disseminated and massive nickel-copper-PGE
sulphide mineralization from 693.79m depth assaying 2.35% Ni, 1.40% Cu, 0.77g/t PGE’s
and 0.17g/t Au (3.04% NiEq). This intersection included high grade zones of:
•
•
2.84 m from 700.83 m depth of 7.68% Ni, 4.59% Cu, 2.41 g/t PGE’s and 0.53 g/t Au (9.87% NiEq)
1.63 m from 702.04 m depth of 9.33% Ni, 5.14% Cu, 3.65 g/t PGE’s and 0.71 g/t Au (12.01% NiEq)
• The 3D-DHEM in conjunction with the geology, magnetic and gravity data indicate that the
mineralization is potentially continuous along strike and will be followed-up with a planned drill
program.
For a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1
TAMARACK
25
164 Zone
Platexco
•
Previous drilling has intersected mixed zones of
disseminated and massive sulphide mineralisation at the
base of the FGO and mixed zone (MZ) intrusions.
•
The target is the MSU where it is potentially hosted along an
axis (keel) at the base of the FGO.
•
Targeting of this keel can be guided through geochemistry
Talon Metals
where a ‘Basal FGO’ layer can indicate proximity to the keel.
•
Three holes were drilled in the winter exploration program:
12LV0143 (deepened), 15TK0227 and 15TK0222 located
between 0.4 km and 0.8 km south of the Tamarack Zone1.
•
•
Drill holes 15TK0222 and 15TK0227 intercepted Mixed
Zone (MZ) with associated sulphides.
The new modelling of the FGO and the keel from the data
provided by the drilling, combined with wide intercepts of
sulphides, suggests the 164 Zone is highly prospective.
a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1 For
26 TAMARACK
26
142 Zone
•
Drill hole 15TK0226 was drilled as part of the
Winter Exploration Program and is located 2km
south of the Tamarack Zone1.
•
Platexco
It targeted a DHEM off-hole anomaly
surveyed previously from drill hole
12LV0142.
Talon Metals
•
The FGO-sediment contact was intersected
at a higher than anticipated level after only
intersecting 55 meters of FGO that included
a mineralised zone of 0.7 meters.
•
A DHEM survey from drill hole 15TK0226
identified an off-hole anomaly suggesting
highly conductive material to the east of the
hole. This is consistent with new modelling of
the FGO keel and will require further drilling
to test.
a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1 For
27 TAMARACK
27
TAMARACK SOUTH PROJECT
TAMARACK
28
Tamarack South Project
Platexco
Tamarack South Project consists
of two areas:
• The “Neck”
• The “Bowl” - large layered
lopolith to the south.
In 2015, three (3) holes were
drilled in the “Neck” and “Bowl”
29 TAMARACK
29
Tamarack South: Results in the “Neck”1
• Drill hole 15TK0218 was drilled 3.8 km south of the Tamarack Zone within the “Neck” portion
of the Tamarack South Project.
• The “Neck” has been interpreted based on similar geochemistry, as a possible entry point to
the larger “Bowl” or lopolithic intrusion to the south, with potential implications as a site for
settling and accumulation of massive sulphide in a setting similar to many other deposits.
• The results from drill hole 15TK0218 have confirmed the potential for significant
mineralization within the “Neck”.
•
•
The FGO intersected from drill hole 15TK0218 shows the same geochemical trends
and magmatic layering observed in the Tamarack Zone, and importantly the presence
of disseminated sulphides and development of the basal FGO that is typically
associated with the keel.
A DHEM survey from drill hole 15TK0218 shows a proximal off-hole anomaly
coincident with the base of the FGO, highlighting the potential for the development of
massive sulphides similar to the Tamarack Zone.
• Further follow-up drilling is planned.
a list of all holes and associated drill and assay data see Talon’s Press
Releases dated July 29, 2015 and September 1, 2015
1 For
TAMARACK
30
NEXT STEPS
TAMARACK
31
Next Steps
• Talon and Kennecott are currently planning the 2016 winter exploration program at
Tamarack, which will commence in Q1, 2016
• Approximately US$15 million is expected to be spent on exploration activities
over the next two years
Stay Tuned for drill results……
TAMARACK
32
TALON
CAPITAL STRUCTURE
(as of January 21, 2016)
TAMARACK
33
Talon Capital Structure
TSX:TLO
Issued Shares: 128,809,937
Total Diluted Shares: 152,502,339 1
Securities and Royalties:
• 14.2 million shares in Tlou Energy Limited (ASX:TOU)
• Receive up to 30 million Rand (SA) from its royalty on the Boikarabelo Coal Mine in South
Africa owned by Resource Generation Ltd (ASX:RES)
RCF Loan:
• On December 29, 2015, Talon received US$14-million from Resource Capital Fund V.I.
LP (“RCF”) in the form of an unsecured convertible loan
• RCF has a right to convert all or part of the loan at a price of C$0.156 per Talon share
• The RCF loan matures on November 25, 2018 and bears interest at 12% p.a.
1 The
above does not include any further shares that may be issued to RCF in
the event of an election to convert all or part of the loan and/or interest
TAMARACK
34