Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (April 2022)
35 slides from Talon Metals's investor presentation, April 2022
Slide 1: Tamarack Nickel Project
TAMARACK NICKEL PROJECT HIGH-GRADE NICKEL-COPPER-COBALT THE NEXT LOW-COST PRODUCER OF NICKEL IN THE USA TALON METALS CORP. (TSX:TLO) RIO TINTO (KENNECOTT EXPLORATION COMPANY) TSX:TLO JOINT VENTURE April 2022
Slide 2: Conditions of Presentation
CONDITIONS OF PRESENTATION This presentation has been prepared by Talon Metals Corp. (“Talon” or the “Company”) and is being delivered for informational purposes only. The information contained herein may be subject to updating, completion, revision, verification and further amendment. Except as may
Slide 3: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains certain “forward-looking statements”. All statements, other than statements of historical fact that address activities, events or developments that Talon believes, expects or anticipates will or may occur in the future are forward-looking statem
Slide 4: Technical Reference
TECHNICAL REFERENCE The mineral resource figures disclosed in this presentation are estimates and no assurances can be given that the indicated levels of nickel, copper, cobalt, platinum, palladium and gold will be produced. Such estimates are expressions of judgment based on knowledge, mining exper
Slide 5: Located in the United States on Infrastructure
LOCATED IN THE UNITED STATES ON INFRASTRUCTURE MINNESOTA TSX:TLO 5
Slide 6: Tamarack Nickel Project - Key Highlights
TAMARACK NICKEL PROJECT - KEY HIGHLIGHTS The Tamarack Nickel Project is one of three high-grade Ni-Cu-Co projects on infrastructure discovered in the 21st century with a To date, the Company has been predominantly funded by BATTERY GRADE resource prepared in accordance with NI 43-101 suitable for so
Slide 7: Rio Tinto Is Our Active Joint Venture Partner
RIO TINTO IS OUR ACTIVE JOINT VENTURE PARTNER The Tamarack Nickel Project is comprised of the Tamarack North Project and the Tamarack South Project with 31,000 acres of Private Land and State Leases Talon has formally earned a 51% majority interest in the Tamarack Nickel Project by: Land package of
Slide 8: A Combined Talon and Rio Tinto Team
A COMBINED TALON AND RIO TINTO* TEAM Previously General Counsel and Director of Mergers Previously COO at Tau Capital. Secured and Sean Werger & Acquisitions at Tau Capital, with project Henri van Rooyen managed large exploration projects across 3 President, Head of Investor divestments of mining pr
Slide 9: High-Grade Nickel Sulphide Deposits Are Extremely Rare
HIGH-GRADE NICKEL SULPHIDE DEPOSITS ARE EXTREMELY RARE THEREFORE NICKEL NEW HIGH-GRADE NICKEL AND EXISTING NICKEL SULPHIDE MINE PRODUCTION SULPHIDE DISCOVERIES SULPHIDE MINE GRADES AS A % OF TOTAL NICKEL ARE DIFFICULT TO FIND CONTINUE TO DECLINE PRODUCTION WILL CONTINUE TO DECLINE Only two 21st cent
Slide 10: Tamarack Intrusive Complex Strikes Over Approximately 18 km
TAMARACK INTRUSIVE COMPLEX (TIC) STRIKES OVER APPROXIMATELY 18 KM RESOURCE ESTIMATE IS BASED ON ONLY ~750 METRES Tamarack North Project NI 43-101 Mineral Resource Estimate (Effective Date: EFFICIENT TO MINE DUE TO: January 8, 2021) %Ni Tonnes Ni Cu Co Pt Pd Au NiEq Decline ramp access from surface C
Slide 11: Tamarack Resource: Resource Domains and Drill Hole Intersects
TAMARACK RESOURCE : RESOURCE DOMAINS AND DRILL HOLE INTERSECTS 138 Zone Tamarack Resource area 14TK0204 (December 1, 2014) Upper Semi-Massive 47 meters (154.2 feet) of 0.92% NiEq Sulphide Unit (USMSU) • High-grade nickel-copper mineralization 20TK0277 (April 13, 2021) Lower Semi-Massive Sulphide Uni
Slide 12: Resource Expansion: CGO East and CGO Bend
RESOURCE EXPANSION CGO EAST AND CGO BEND Vast exploration area with shallow mineralization outside of the resource area. See the Company’s press releases dated Area is defined as “CGO East” November 2, 2020, December 15, 2020, March 31, 2021, April 22, 2021, May 4, 2021, and May 19, 2021, for furthe
Slide 13: Resource Expansion: CGO West
RESOURCE EXPANSION CGO WEST Vast exploration area with shallow mineralization outside of the resource area Area is defined as “CGO WEST” Current drilling (up to 300 meters outside the resource area) suggests continuous shallow nickel-copper mineralization of +200 meters of strike length with thickne
Slide 14: Resource Expansion: Example of Grade Increase
RESOURCE EXPANSION RESOURCE AREA EXPANSION: EXAMPLE OF GRADE INCREASE Drill Hole 20TK0277 o Intersected 138.18 meters (453.35 feet) of semi- massive and disseminated sulphide mineralization grading 2.26 % NiEq. The drill hole extends both the Upper SMSU (semi-massive sulphide unit) and Lower SMSU to
Slide 15: Resource Expansion: Increased Thickness and Grade
RESOURCE EXPANSION RESOURCE AREA EXPANSION: EXAMPLE OF INCREASED THICKNESS AND GRADE Drill Hole 20TK0278 (West MSU) o Intersected 21.73 meters (71.3 feet) grading 6.72% Ni, 2.95% Cu, 0.13% Co, 0.56 g/t Pd, 0.76 g.t Pt and 0.38 g/t Au (8.35% NiEq or 22.28% CuEq) starting at 459.72 meters See the Comp
Slide 16: Exploring the Remaining 16.5 km of the Tamarack Intrusive Complex
EXPLORING THE REMAINING 16.5 KM OF THE TAMARACK INTRUSIVE COMPLEX SIGNIFICANT UPSIDE POTENTIAL OUTSIDE OF THE RESOURCE AREA The Tamarack Intrusive Complex (TIC) – The Oktyabrysk Ni-Cu-PGE deposit – one of the largest First discovery drill hole: 2008 264 Zone known magmatic sulfide Hole 18TK0264 inte
Slide 17: Green Nickel
GREEN NICKEL FOR A U.S. SUPPLY CHAIN “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an -Elon Musk (July 23, 2020) environmentally sensitive way” (Co-founder and CEO of Tesla) “At the Tamarack Project, located in Minnesota, USA, we believe that n
Slide 18: Talon and Tesla Supply Agreement
Talon and Tesla Supply Agreement On January 10, 2022, following an extensive due “This agreement is the start of an innovative diligence Talon and Tesla Inc. entered into an partnership between Tesla and Talon for the agreement for the supply and purchase of nickel responsible production of battery
Slide 19: 2021 Key Performance Indicators
2021 Key Performance Indicators 2021 Milestone Scorecard 25,000 – 30,000 meter drilling program throughout 2021 Drilled over 33,000 meters during 2021 Operate the project in a safe manner 0 lost time injuries in 2021 with a peak of 73 staff and contractors on site Reduce drilling cost - $200/m Targe
Slide 20: Capital Structure
CAPITAL STRUCTURE Shares issued 757.1M Warrants outstanding 7.2M @ avg. exercise price of C$0.66 Options outstanding 106.2M @ avg. exercise price of C$0.35 Fully diluted 870.5M Share price C$0.85 Exchange symbol TLO.TSX Market capitalization C$644M / US$514M Cash C$42M / US$33M (As at March 31, 2022
Slide 21: Annex 1: Results of Preliminary Economic Assessment (PEA)
ANNEX 1 RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT (PEA) Please see the technical report entitled “NI 43-101 Technical Report Preliminary Economic Assessment (PEA) #3 of the Tamarack North Project – Tamarack, Minnesota” with an effective date of January 8, 2021 for further information. Copies are av
Slide 22: February 2021 PEA
FEBRUARY 2021 PEA NPV INCREASE OF 96% FROM PREVOUS PEA (AND MORE ROOM TO GROW) February 2021 PEA All amounts in March 2020 NICKEL SULPHATE NICKEL POWDER NICKEL CONCENTRATE United States dollars PEA(4) SCENARIO(1) SCENARIO(2) SCENARIO(3) After-Tax NPV(5), (6) US$291 million US$569 million US$567 mill
Slide 23: February 2021 PEA vs. March 2020 PEA
FEBRUARY 2021 PEA vs. MARCH 2020 PEA WORLD CLASS IRR DRIVEN BY HIGH-GRADE DEPOSIT AND LOW CAPITAL INTENSITY WORLD CLASS IRR DRIVEN BY: $600 567 569 50% 48.3% 553 520 High Grades 45.6% 45% $500 40% Good Recoveries 36.0% 35% $400 Shallow Mineral Deposit 31.9% 30% 316 316 Mining Method: Primarily bulk
Slide 24: February 2021 PEA Mine Plan
FEBRUARY 2021 PEA MINE PLAN SHALLOW UNDERGROUND MINE AMENABLE TO BULK MINING METHODS EFFICIENT MINE DUE TO: Decline ramp access from surface Long-hole stoping/drift and fill 9 year mine life (excluding construction) First ore within 2 years from start of construction 10.8 Mt mined at 1.34% Ni (1.85%
Slide 25: Mine Technology
MINE TECHNOLOGY IMPLEMENT BEST AVAILABLE TECHNOLOGIES Expand mineable resource Accelerate time to production Significantly reduce CAPEX and OPEX Minimize environmental impacts Vertical Conveying Full Battery/Electric Fleet Blast-less Mining (1) ▪ Very low CAPEX ▪ Expected to be the standard when ▪ P
Slide 26: February 2021 PEA – Additional Metrics
FEBRUARY 2021 PEA – ADDITIONAL METRICS LOW CAPITAL INTENSITY, HIGH METAL RECOVERIES AND ROBUST ECONOMICS February 2021 PEA All amounts in United States dollars NICKEL SULPHATE NICKEL POWDER NICKEL CONCENTRATE March 2020 PEA SCENARIO SCENARIO SCENARIO Mine Plan Tonnage 4.9 million 10.8 million 10.8 m
Slide 27: February 2021 PEA: CAPEX and OPEX
FEBRUARY 2021 PEA: CAPEX AND OPEX INITIAL CAPEX IS READILY FINANCEABLE CAPEX OPEX (US$/t of mill feed) Nickel Powder Scenario or Cost Category Ni Ni Ni US$ millions Nickel Sulphate Scenario Sulphate Powder Concentrate Nickel Concentrate Scenario Scenario Scenario Scenario Initial Sustaining Total In
Slide 28: Tamarack Is Economic Even at Low Metal Prices
TAMARACK IS ECONOMIC EVEN AT LOW METAL PRICES At low metal prices of $6.75 Ni/$2.75 Cu, after-tax IRR ranges from 25.1% to 39.3% NICKEL SULPHATE SCENARIO NICKEL POWDER SCENARIO NICKEL CONCENTRATE SCENARIO All amounts in Discount United States dollars Rate Metal Price Case Metal Price Case Metal Pric
Slide 29: Annex 2: Stainless Steel Demand for Nickel Concentrates
ANNEX 2: STAINLESS STEEL DEMAND FOR NICKEL CONCENTRATES TSX:TLO 29
Slide 30: Stainless Steel Needs Clean Sulphide Concentrates
STAINLESS STEEL NEEDS CLEAN SULPHIDE CONCENTRATES MAYBE EVEN MORE THAN EV • EV or no EV, the demand for nickel concentrates is expected to rapidly exceed supply • More so for clean nickel concentrates with low deleterious elements • “Payabilites” of Ni from the stainless steel supply chain are there
Slide 31: Annex 3: Benchmarking and Public Company Comparables
ANNEX 3: BENCHMARKING AND PUBLIC COMPANY COMPARABLES TSX:TLO 31
Slide 32: After-Tax IRR and CAPEX Comparison
Undeveloped Class 1 Nickel Projects After-tax IRR and CAPEX Comparison $2.0 60% 60% 60% $2.0 $2.0 Powder Scenario $1.7 50% 50% 50% $1.7 $1.7 RATE OF RETURN (“IRR”) AFTER-TAX INTERNAL Concentrate $1.3 40% 40% Scenario 40% $1.3 $1.3 CAPEX (US$ BN) $1.0 30% 30% 30% $1.0 $1.0 Sulphate Scenario $0.7 20%
Slide 33: Base Metal Asset Benchmarking
Base Metal Asset Benchmarking After-tax IRR, Capital Intensity and CAPEX Comparison Enterprise Copperwood Pumpkin Hollow (First Quantum)(6) $10,000 Makwa Mayville (Nevada Copper) Odysseus Arctic (Trilogy Metals / South32) Kipushi (Ivanhoe Mines / Gécamines) Tamarack OP (Grid Metals) (Highland Copper
Slide 34: Limited Number of Class 1 Nickel Projects
Limited Number of Class 1 Nickel Projects Select Advanced-Stage Development Projects Comparison U.S. Critical Metals Supply Chain 1 ⚫ In order to meet future demand expectations, significant capital 4 will be required to explore, discover, and develop “green” metals ⚫ Supply shortage of Class 1 nick
Slide 35: Contact Information
CONTACT INFORMATION Talon Metals Corp. Todd Malan, Chief External Affairs Officer malan@talonmetals.com B: (202) 714-8187 www.talonmetals.com https://www.linkedin.com/company/talon-metals-corp Visit our interactive website! TSX:TLO 35