Talon Metals spends C$2.3M on exploration at its Tamarack nickel-copper-cobalt project in 3Q

Talon Metals Corp (TSE:TLO) (OTCMKTS:TLOFF) (FRA:TAO) reported that it spent C$2.3 million on exploration at its exciting Tamarack nickel-copper-cobalt project in the third quarter to end-September, as it continues to advance the asset – one of the only undeveloped nickel properties in the US. 

The project lies in Minnesota and the exploration firm’s goal is to potentially supply the rapidly growing electric vehicle (EV) battery market. 

READ: Talon Metals intersects shallow nickel mineralization outside of current Tamarack resource area

In the three months to September 30, Talon told investors that capitalized exploration costs and deferred expenditures for the site amounted to C$2.3 million, compared to C$0.8 million in the third quarter of 2019.

In all, the total exploration cost for the project by the firm up to September 30 this year amounts to C$60.7 million (US$45.5 million).

Talon is in a joint venture on the 124 sq km Tamarack property with mining giant Rio Tinto PLC (LON:RIO). The smaller firm can earn up to a 60% stake.

An updated preliminary economic assessment (PEA) dated March 20 this year suggested an after-tax net present value (NPV) of US$291 million, while the after-tax internal rate of return (IRR) was put at a world-class 36%.

On November 2, Talon revealed it had found more areas of nickel mineralization outside of the current defined resource area, with a new hole sunk around 350 metres (m) away, in the CGO East area hitting shallow nickel mineralization, indicating a new zone.

In September, it posted assays from the ongoing drill campaign that highlighted the project’s potential to become a significant nickel resource.

The firm revealed massive and disseminated sulphides in one hole of 2.8m at 3.8% nickel, 1.6% copper, 0.1% cobalt, 0.6 grams per ton (g/t) platinum group elements (PGEs) and 0.4 g/t gold starting at 139m.

In keeping with a company at this stage of development, Talon Metals reported a net loss for the three months of C$0.5 million or nil per share (basic and diluted), which was primarily the result of administration expenses.

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Story by ProactiveInvestors