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Talon Metals Announces Improved Economics Under Its Updated PEA and a 106% Increase in Overall Tonnage Included in the Mine Plan, Along with an Increased Mine Life
Road Town, Tortola, British Virgin Islands--(Newsfile Corp. - March 5, 2020) - Talon Metals Co...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Metals Announces Improved Economics Under Its Updated PEA and a 106% Increase in Overall Tonnage Included in the Mine Plan, Along with an Increased Mine LifeRoad Town, Tortola, British Virgin Islands--(Newsfile Corp. - March 5, 2020) - Talon Metals Corp. (TSX: TLO) (\"Talon\" or the \"Company\") is pleased to announce that it has completed an updated Preliminary Economic Assessment (the \"Updated PEA\") over a subset of the mineral resource estimate within the Tamarack Zone (located at the Tamarack North Project, Minnesota, USA). Talon currently has the right to acquire up to a 60% ownership interest in the Tamarack Project on the satisfaction of certain terms and conditions. All amounts are presented on a 100% ownership basis and all dollar amounts are in United States dollars.Highlights The overall tonnage included in the mine plan has increased by 106% from the Initial PEA1 to 4.91 million tonnes under the Updated PEA;After-tax NPV has increased by 39% from the Initial PEA to US$291M under the Updated PEA (using a discount rate of 7%);Excellent after-tax IRR of 36% at base case metal prices;Low C1 cost of US$2.67 per lb of nickel in concentrate2;Overall nickel and copper grades remain high at 2.10% and 1.06%, respectively, with a Nickel Equivalent (NiEq)3 grade of 2.82%;Total nickel and copper recoveries remain high at 83.4% and 94.4%, respectively;Initial and total CAPEX remains low at US$219M and US$259M, respectively;Mine life has increased from 6.4 years under Initial PEA to 7.5 years under the Updated PEA, combined with a mill treatment capacity increase from 1,390 tpd to 2,000 tpd; andQuick after-tax payback of 2.5 years. \"The Updated PEA demonstrates that by conducting additional metallurgical test work, and thereby adding tonnage into the mine plan (with no additional drilling), the economics associated with the Tamarack North Project keep improving significantly, despite the fact that they were excellent to begin with,\" said Henri van Rooyen, CEO of Talon. \"Nonetheless, additional opportunities still remain to further increase the tonnage included in the mine plan and consequently, the mine life and production rate.\" Figure 1: Long Section (looking west) of the Updated PEA Conceptual Mine Plan Development and Stopes in Relation to the Wireframes for Resource DomainsTo view an enhanced version of Figure 1, p...