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Talon Metals Announces Updated PEA on the Tamarack Nickel Project: After-Tax NPV Increases 96% to US$569 Million
PEA Demonstrates Robust Economics and Optionality to Produce Nickel for the Electric Vehicle o...
About this update from Talon Metals Corp.
[{"type":"text","content":"Talon Metals Announces Updated PEA on the Tamarack Nickel Project: After-Tax NPV Increases 96% to US$569 MillionPEA Demonstrates Robust Economics and Optionality to Produce Nickel for the Electric Vehicle or Stainless Steel MarketsRoad Town, Tortola, British Virgin Islands--(Newsfile Corp. - February 4, 2021) - Talon Metals Corp. (TSX: TLO) (\"Talon\" or the \"Company\") is pleased to announce that it has completed an updated Preliminary Economic Assessment (the \"February 2021 PEA\") in respect of the Tamarack Nickel-Copper Cobalt Project (the \"Tamarack Nickel Project\"). Talon currently has the right to acquire up to a 60% ownership interest in the Tamarack Nickel Project upon the satisfaction of certain terms and conditions1. HighlightsThe February 2021 PEA provides economics for three considered scenarios:nickel sulphates used for the electric vehicle (EV) market (\"Nickel Sulphate Scenario\");nickel concentrates used to produce refined nickel powders for the electric vehicle (EV) market (\"Nickel Powder Scenario\"); andnickel concentrates used for the traditional stainless steel market (\"Nickel Concentrate Scenario\");After-tax NPV's of:US$569 million (after-tax IRR of 31.9%) (Nickel Sulphate Scenario); US$567 million (after-tax IRR of 48.3%) (Nickel Powder Scenario); and US$520 million (after-tax IRR of 45.6%) (Nickel Concentrate Scenario), using base case metal price assumptions of $8.00/lb nickel and $3.00/lb copper and a discount rate of 7%;At incentive metal prices of $9.50/lb nickel and $3.50/lb copper, the after-tax NPV's increase to:US$769 million (after-tax IRR of 38.6%) (Nickel Sulphate Scenario); US$744 million (after-tax IRR of 57.7%) (Nickel Powder Scenario); and US$695 million (after-tax IRR of 55.1%) (Nickel Concentrate Scenario).The above-noted economics exclude the Company's recent positive drilling results both within the Tamarack Nickel Project's current resource area (see the Company's press releases dated January 12, 2021 and January 26, 2021) and approximately 350 meters up-dip to the north-east of the Tamarack Nickel Project's current resource area (i.e., drill results form the area known as CGO East, as discussed in the Company's press releases dated September 16, 2020 and November 2, 2020).Low C1 Costs2 and All-in Sustaining Cost (net of by-product revenue) for all three contemplated scenarios, in...