LOW of the lows TLO news release 71.3% FE Talon Metals Corp. has released positive metallurgical results from its 100-per-cent-owned Trairao iron project, located in Para state, Brazil. Following the company's press release dated Sept. 27, 2012, the magnetite-rich mineralization samples (from the fresh rock portion of the Trairao project), which were previously tested using Davis tube at P100 passing 45 microns, were selected for further Davis tube testing at a finer grind of 25 microns. The metallurgical test results from these samples confirm that in the vast majority of cases, the concentrate grades increase significantly with finer grinding, indicating that a premium-grade product can be attained from the Trairao project. "The latest batch of results from the Davis tube metallurgical tests conducted on the fresh rock is in line with our expectations", said Henri van Rooyen, chief executive officer of Talon. "These results confirm that a high-grade concentrate product can be produced from both the BIF [banded iron formation] and magnetite-rich mineralization, where the potential for resource expansion at the Trairao project lies. Due to this positive development, we are in the process of retaining CRU Group to work with Talon and Ausenco to identify an optimal product for each rock type in the stratigraphic column in order to serve both local and export markets, which we expect will maximize future cash flows."
Metallurgical testwork details
Thirty samples of magnetite-rich mineralization were submitted to SGS in Lakefield, Ont., for Davis tube testing at a grind P100 of 25 microns (as compared with 45 microns previously) using low-magnetic-intensity separation of 800 Gauss to produce an iron concentrate. Concentrate grades increased significantly with finer grinding, with grades ranging between 58.9 per cent and 71.3 per cent Fe (notably, only three samples produced concentrate grades below 62 per cent Fe), with the average Fe grade increasing from 60.1 per cent to 67.1 per cent. Mass yield ranged from 6.4 per cent to 26.9 per cent (compared with 10.3 per cent to 28.6 per cent at 45 microns), while the average mass yield was reduced from 20.2 per cent to 17.4 per cent. Metallurgical recoveries ranged from 21 per cent to 63 per cent (compared with 16 per cent to 64 per cent at 45 microns), with the average metallurgical recovery remaining constant at 46 per cent. Aluminum grades ranged from 0.15 per cent to 2.8 per cent (compared with 0.2 per cent to 5.1 per cent at 45 microns), while average aluminum grades were reduced from 1.56 per cent to 0.83 per cent. Silica ranged from 1.62 per cent to 11.9 per cent (compared with 2.5 per cent to 31.1 per cent at 45 microns), while average silica was reduced from 11.7 per cent to 4.9 per cent. Phosphorous varied between 0 per cent and 0.05 per cent.
Next steps for the Trairao project
There are a number of continuing initiatives in respect of the Trairao project, each of which is important to enable the company to secure a suitable strategic partner for developing the Trairao project going forward. As previously reported, the company appointed Ausenco (a global, diversified engineering, project management and mining services company), which is independent of Talon, to evaluate all mineralogical and metallurgical test results received from the Trairao project. Ausenco has already completed its evaluation and is now devising a testwork program with the view of creating flow sheets for each of the saprolite, saprock and fresh rock material. This test program and flow sheet design will form part of a preliminary economic assessment, which is expected to be commissioned after a suitable strategic partner has been secured. Due to the requirement for finer grinding of the fresh rock, Talon has identified a number of energy-efficient, proven, large-scale fine-grinding technologies capable of handling high rock volumes. To this end, Xstrata Technology, which is independent of Talon, has engaged with Talon to assess the applicability of its IsaMill technology on the Trairao project. The IsaMill technology is an energy-efficient, large-scale grinding machine, which, if applicable to the Trairao project, would allow for large-scale, economically efficient fine grinding at the Trairao project in order to maximize liberation while controlling energy consumption.
The company is in the process of retaining CRU Group, a global leader in iron ore market analysis, which is independent of Talon, to work with Talon and Ausenco to define a range of products that will optimize profits from the Trairao project's distinctly different types of mineralized rocks. In regard to developing high-grade iron ore supply for the local Brazilian market from the surficial deposit at the Trairao project, evaluation of samples collected during the company's recent exploration program (commissioned after a signed letter of intent with a potential offtaker) remains in progress. In addition, the company is currently reviewing the suitability of the high-grade iron ore supply from the Trairao project to an existing processing facility, which is owned by the potential offtaker.
New opportunity updadte
In line with the company's updated corporate strategy that was previously announced on Sept. 27, 2012, the company has already commenced due diligence on a number of advanced opportunities that could generate cash flow for the company in the near term. Many of these opportunities also have substantial exploration upside potential. The company will provide a further update as soon as any of these opportunities materializes.
Qualified person
Talon's exploration programs are being managed by Mauricio Prado, MAIG, vice-president, resource modelling, of Talon. Mr. Prado is a qualified person within the meaning of National Instrument 43-101. Mr. Prado is satisfied that the processes used by SGS are standard industry operating procedures and methodologies, and he has reviewed, approved and verified the technical information disclosed in this news release including sampling, analytical and test data underlying the technical information.
For further information on the Trairao project, please refer to the technical report entitled, "Fourth Independent Technical Report on Mineral Resources," dated March 30, 2012, a copy of which is available under Talon's SEDAR profile.
The metallurgical testwork discussed in this news release was conducted by SGS in Lakefield, Ont. SGS is independent of Talon.