TALON METALS ANNOUNCES DRILLING RESULTS AT THE TRATalon Metals Corp. is providing the results from the reverse circulation drilling carried out over target areas 4, 5 and 6 at its 100-per-cent-owned Trairao iron project, located in Para state, Brazil. These target areas represent the eastern extension of the 18 kilometre long TrairA pounds sterlingo ridge which currently has a cumulative inferred mineral resource estimate in Target Areas 1, 2 and 3 of approximately 1.1 billion tonnes at an average grade of approximately 36% Fe, with a cut-off of 25% Fe (National Instrument 43-101 compliant).
The three Target Areas 4, 5 and 6 are underlain by three parallel Banded Iron Formation ("BIF") units, which have a cumulative strike length of 5,500 metres and each are mapped as being between 50 and 200 metres wide (see Figure 1). The three parallel BIF units are developed in an area some 2,800 metres along strike and 850 metres wide. The BIFs are overlain by saprock and, locally, by saprolite and surficial deposits. The 42 RC holes (total of 1,850 metres) were all drilled vertically to various depths down to 75 metres on a 200 x 200 metre spaced grid.
Results for the 35 holes that intersected the mineralization are presented in Table 1 in the Appendix of this news release. The remaining seven holes served to close off the mineralized zones and are shown in Table 2 of the Appendix. Highlights of the mineralized intersections are:
- Hole TRC-0170 - 70* metres grading 32% Fe, including 31 metres grading 38% Fe;
- Hole TRC-0169 - 75* metres grading 30% Fe, including 19 metres grading 38% Fe;
- Hole TRC-0190 - 52* metres grading 33% Fe, including 21 metres grading 37% Fe;
- Hole TRC-0184 - 54 metres grading 33% Fe, including 13 metres grading 40% Fe.
- Hole TRC-0171 - 40* metres grading 35% Fe
*Mineralization in hole is open at depth
"These results are part of our ongoing program which aims to test all of the extensive iron mineralization and expand the mineral resource base within the TrairA pounds sterlingo licence areas," said Mr. Eddie Scholtz, President and CEO of Talon. "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. Our focus is increasingly on the mining, metallurgical and logistical aspects as well as improving confidence in our mineral resource estimates, as part of our preliminary economic assessment of this project."
Target Areas 4, 5 and 6 are a relatively limited eastern extension to the TrairA pounds sterlingo ridge and on which the BIF units are folded and have dips of between 40 degrees and vertical. The area is topographically lower than the TrairA pounds sterlingo ridge and accordingly has a less well preserved lateritic profile, which accounts for the limited development of the higher grade saprolite unit.
Geological and analytical data for Target Areas 4, 5 and 6 will be forwarded to Coffey Mining Ltd. ("Coffey") who has been engaged by Talon, as independent technical consultants, to prepare a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate on these target areas.
Talon is also pleased to announce that Mr. Manoel Carlos Cerqueira has been appointed as Chief Financial Officer of Talon, effective October 1, 2011. Mr. Cerqueira brings over 27 years of accounting and finance experience to Talon, including 20 years in the mining industry.
Mr. Cerqueira's previous positions include CFO and Country Manager for TSX Venture Exchange listed Amazon Mining Ltd. in 2007-2008, and as Finance Director, VP Finance and Country Manager for Kinross Brazil during 2003-2007. In 2008he founded MCC Legal Ltda. and has been the Managing Partner since then. Mr. Cerqueira is registered with the Accounting Regional Council in Brazil (the regulatory organization that governs professional accountants in Brazil) and is also a lawyer registered with the Brazilian Bar Association. He began his career with Arthur Andersen in Brazil.
"Manoel Cerqueira is an excellent addition to Talon's senior management team and it is my pleasure to welcome him," said Eddie Scholtz, President and CEO of Talon.
Talon wishes to thank Mr. Nelson F.M. Pfaltzgraff, the outgoing CFO, for his service to the company over the past sixyears, and wishes him well in all his future endeavours.
Drilling Update and Outlook
Since January 2011, Talon has drilled 361 reverse circulation ("RC") drill holes (19,691 metres) and 59 diamond drill holes (7,349 metres) on the TrairA pounds sterlingo Iron Project. Currently, the Company has 1 RC rig and 5 diamond rigs on site. Diamond drilling continues in Target Areas 1, 2 and 3 with an aim to update the mineral resource estimates from the inferred category to the indicated category. Representative samples have been collected from Target Areas 1, 2 and 3 and have been submitted for metallurgical testing and preliminary conceptual mining and logistical studies have been commissioned. In addition, preliminary field work at the InajA! South Iron Project is nearing completion, in preparation for drilling which will commence in early October. Preliminary investigations are also being undertaken on a number of iron ore projects including some that recently have been submitted to the Company by third parties.
Quality Assurance, Quality Control and Qualified Person
All drilling samples have been prepared and analyzed by SGS-Geosol LaboratA Superscript threerios Ltda ("SGS") which is ISO14001:2004 and ISO 9001:2008 accredited and is independent of Talon. Sample preparation was conducted at SGS Parauapebas preparation facility whereas analyses were performed at the SGS laboratory based in Belo Horizonte, Brazil. The samples were analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature.
QA/QC procedures include the submission by Talon of systematic duplicates, blanks and standard samples within every sample batch submitted to SGS. In addition, SGS inserts its own standards, blanks and duplicate samples. The results from these control samples indicate acceptable consistency of analysis.
Talon's exploration programs are being managed by Talon's Mining Engineer, Mr. Ricardo A lvares de Campos Cordeiro (MAIG) and Talon's VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM). Mr. Cordeiro is a "qualified person" within the meaning of NI 43-101 and has reviewed, approved and verified the technical information disclosed in this news release (other than the mineral resource estimate disclosed herein) including sampling, analytical and test data underlying the technical information.
The qualified person who prepared the mineral resource estimate mentioned in this news release is Mr. Bernardo Horta de Cerqueira Viana who is a geologist, independent of Talon and an employee of Coffey. Please refer to Talon's news release of August 4, 2011 entitled "Talon Metals' Inferred Mineral Resource Estimate Exceeds 1 Billion Tonnes at the TrairA pounds sterlingo Iron Project, Brazil" for additional information on this mineral resource estimate. Coffey compiled a NI 43-101 compliant technical report on Target Areas 1, 2 and 3 of the TrairA pounds sterlingo Iron Project entitled "Third Independent Technical Report on Mineral Resources" dated August 12, 2011, a copy of which is available under Talon's SEDAR profile at www.sedar.com.
About TrairA pounds sterlingo Project
The TrairA pounds sterlingo Iron Project is situated within the Serra da Seringa Archean age greenstone belt, within the CarajA!s Mineral Province in Brazil, which also hosts numerous other iron ore deposits. The TrairA pounds sterlingo Project comprises eight exploration licences and four applications for exploration licences, for a total area of 76,523 hectares (189,092 acres).