“This new drill hole is in an area that to date, has been largely underexplored. The hole will likely have the meaningful impact of extending our western high-grade Massive Sulphide Unit (MSU),” said Brian Goldner, Talon Metals head of exploration.
At press time in Toronto, Talon stock was up nearly 9% on the TSE
The company reported earlier this month that drillhole 20TK0273 intersected 8.39 metres grading 8.15% nickel, 3.01% copper, 0.19% cobalt, 0.54 gram palladium per tonne, 0.62 gram platinum per tonne, and 0.17 gram gold per tonne (9.83% nickel equivalent or 26.1% copper equivalent) starting from 414.73 metres.
The company has two drill rigs turning at the project and a third rig is on its way.
The project contains indicated resources of 3.6 million tonnes grading 1.83% nickel, 0.99% copper, 0.05% cobalt, 0.42 gram platinum per tonne, 0.26 gram palladium per tonne, and 0.2 gram gold per tonne (2.45% nickel equivalent). Inferred resources add 4.4 million tonnes grading 1.58% nickel, 0.92% copper, 0.04% cobalt, 0.29 gram platinum, 0.18 gram palladium, and 0.16 gram gold (2.11% nickel equivalent).
This year Talon plans to start a prefeasibility study on the project. An updated preliminary economic assessment in March 2020 envisioned an underground mine producing 4.9 million tonnes of processed ore over eight years at all-in sustaining costs of $3.57 per lb. of nickel concentrate.
The early stage study estimated initial capex of $83.33 million and an after-tax payback of 2.5 years. The PEA, which used a nickel concentrate price of $2.67 per lb., forecast an after-tax net present value of $291 million, at a 7% discount rate, and an internal rate of return of 36%.
At press time in Toronto, Talon stock was up nearly 9% on the TSE. The company has a C$363 million market capitalization.
