Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (June 2020)
29 slides from Talon Metals's investor presentation, June 2020
Slide 1: Tamarack Project: High-Grade Nickel-Copper-Cobalt
TAMARACK 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) JOINT VENTURE TSX:TLO June 2020
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 USA on Infrastructure: Rail, Road, Grid Power, Port of Duluth
LOCATED IN THE USA ON INFRASTRUCTURE: RAIL, ROAD, GRID POWER, PORT OF DULUTH TSX:TLO 5
Slide 6: Tamarack Project: Reasons to Invest
TAMARACK PROJECT: REASONS TO INVEST High-grade nickel (sulphide), copper and cobalt project Predominantly funded by sophisticated resource funds that can produce for either the stainless steel market or with specific focus on mining or electric vehicles BATTERY GRADE for batteries for electric vehic
Slide 7: Rio Tinto Is Our Active Joint Venture Partner
RIO TINTO IS OUR ACTIVE JOINT VENTURE PARTNER Tamarack Project comprised of the Tamarack Plan view of the Tamarack North Project and the Tamarack South Project with Intrusive Complex (TIC) 31,000 acres of Private Land and State Leases showing the intrusions, the Semi-Massive Sulphide Unit To earn a
Slide 8: A Combined Talon and Rio Tinto Team
A COMBINED TALON AND RIO TINTO TEAM Previously General Counsel and Director of Previously COO at Tau Capital. Secured and Mergers & Acquisitions at Tau Capital, with Henri van Rooyen managed large exploration projects across 3 Sean Werger project divestments of mining projects totalling in President
Slide 9: High-Grade Sulphide Deposits Are the Preferred, Low-Cost Source of Nickel
HIGH-GRADE SULPHIDE DEPOSITS ARE THE PREFERRED, LOW-COST SOURCE OF NICKEL BUT ARE DIFFICULT TO FIND 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 PRODUCTIO
Slide 10: Established Resource on Less Than 1 km of the 18 km Tamarack Intrusive Complex
ESTABLISHED RESOURCE IS ON LESS THAN 1 KM OF THE 18 KM TAMARACK INTRUSIVE COMPLEX (TIC) Tamarack North Project NI 43-101 Mineral Resource Estimate (February 15, 2018) - Tamarack and 138 Zones The Tamarack Intrusive Complex (TIC) – First discovery drill hole: 2008 Calc Resource Tonnes Ni Cu Co Pt Pd
Slide 11: Expansion of High-Grade Massive Sulphide Unit
EXPANSION OF HIGH-GRADE MASSIVE SULPHIDE UNIT: TYPICALLY GRADING HIGHER THAN 4% NICKEL AND 1.6% COPPER TWO WAYS TO EXPAND: 1 Expand present resource 2 Follow-up on distant high-grade intercepts TSX:TLO 11
Slide 12: Winter 2020 Exploration Program: Drilling Results
WINTER 2020 EXPLORATION PROGRAM: DRILLING RESULTS Drilled 8 holes of which 6 intersected massive and/or mixed massive sulphides Intersected a total of 38 meters (125 feet) of mixed and massive sulphides in 6 holes and additional 363 meters (1,190 feet) of disseminated sulphides in 3 holes NiEq % = N
Slide 13: Winter 2020 Exploration Program: Geophysics Results
WINTER 2020 EXPLORATION PROGRAM: GEOPHYSICS RESULTS NEW TARGETS TO THE SOUTH OF THE RESOURCE AREA NEW TARGET TO THE EAST OF THE RESOURCE AREA Borehole electromagnetic plates (in green) indicating that the high-grade massive sulphide unit may extend to the east of the present resource: The area to th
Slide 14: Winter 2020 Exploration Program: Metallurgical (Pre-Concentration) Results
WINTER 2020 EXPLORATION PROGRAM: METALLURGICAL (PRE-CONCENTRATION) RESULTS Coarse Grained Disseminated Sulphides Resources Area Potential for large-scale blast hole, open stoping mining methods Potential to reject gangue underground, thereby increasing grade before transportation up the shaft Result
Slide 15: Results of Preliminary Economic Assessment (PEA)
RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT (PEA) Please see the technical report entitled “NI 43-101 Technical Report Updated Preliminary Economic Assessment (PEA) of the Tamarack North Project – Tamarack, Minnesota” with an effective date of March 12, 2020 for further information. Copies are availa
Slide 16: Excellent Metallurgical Recoveries and Low Deleterious Elements in Concentrates
EXCELLENT METALLURGICAL RECOVERIES AND LOW DELETERIOUS ELEMENTS IN CONCENTRATES Ni 83.4% Cu 94.4% RECOVERY TOTAL RECOVERY 13.3% Grade 27.6% Grade • High quality nickel concentrates are in high demand. We expect EXCELLENT this trend to continue • We are therefore investigating two possibilities: QUAL
Slide 17: Tamarack Is Expected to Be a Low Cost Producer
TAMARACK IS EXPECTED TO BE A LOW COST PRODUCER THE PEA RESULTS SHOW STRONG ECONOMICS EVEN AT LOW METAL PRICES Unit Low Base case Incentive pricing Ni US$/lb $6.75 $8.00 $9.50 Cu US$/lb $2.75 $3.00 $3.25 Co US$/lb $15.00 $25.00 $35.00 Pt US$/oz $1,000 $1,000 $1,000 Pd US$/oz $1,000 $1,000 $1,000 Au U
Slide 18: PEA: Summary of Results
PEA: SUMMARY OF RESULTS WORLD CLASS IRR DRIVEN BY HIGH-GRADE MSU AND LOW CAPITAL INTENSITY NPV INCREASED 39% RELATIVE TO INITIAL PEA AND FURTHER ROOM TO GROW After tax NPV-7%1 US$291M CAPITAL COSTS (USD millions) After tax IRR1 36.0% Only 4.91 Mt of ~8 Mt Initial mine $83.33 Tonnes processed 4.91 Mt
Slide 19: PEA: Sensitivity Analysis
PEA: SENSITIVITY ANALYSIS LOW CAPITAL INTENSITY AND ROBUST ECONOMICS The Updated PEA illustrates a high after-tax and pre-tax IRR, low C1 costs, low capital Sensitivity of Base Case after-tax NPV to changes in metal intensity and a quick payback. Capital intensity is $21,000 per annual tonne of paya
Slide 20: Product Optionality: Stainless Steel Market or Electric Vehicle Market
PRODUCT OPTIONALITY: TRADE-OFF STUDY OF WHETHER TO PRODUCE FOR THE STAINLESS STEEL MARKET OR THE ELECTRIC VEHICLE MARKET MINE CONCENTRATE OPTION 1: Produce Concentrates for Smelters (subject 67% of the LME nickel price is what the smelter traditionally pays the mine of PEA) 2.10% Ni* 13.3% Ni* PRODU
Slide 21: Recent Achievements and Upcoming Catalysts
RECENT ACHIEVEMENTS AND UPCOMING CATALYSTS RECENT ACHIEVEMENTS UPCOMING CATALYSTS Successful winter drill program—38 meters Additional geophysics to cost-effectively identify and drill (125 feet) of mixed and massive sulphides targets to unlock the potential of the 18 km project drilled in 6 holes S
Slide 22: Capital Structure
CAPITAL STRUCTURE Shares issued 534.5M Warrants outstanding 33.3M Options outstanding 61.4M Fully diluted 629.2M Share price (May 31/20) $0.115 Exchange symbol TLO.TSX Market capitalization C$61M Cash (May 31/20) C$5.9M Major shareholders Resource Capital Funds 48.7% Rio Tinto 5.7% Management and di
Slide 23: Nickel Industry Appendix
Nickel Industry Appendix TSX:TLO 23
Slide 24: A U.S. Based High-Grade Nickel Project Expected to Be a Strategic Source of Nickel Sulphates
A U.S. BASED HIGH-GRADE NICKEL-COPPER-COBALT PROJECT ON INFRASTRUCTURE IS EXPECTED BE A STRATEGIC SOURCE OF NICKEL SULPHATES FOR DOMESTIC CONSUMPTION* Predicted Demand for Nickel in Nickel Sulphates Benchmark World Tour 2019, May 2019, North America (Pg 20). Simon Moores, Managing Director, Wallstre
Slide 25: Nickel Increases EV Range and Reduces Battery Cost
NICKEL INCREASES EV RANGE AND REDUCES BATTERY COST • Nickel currently comprises approximately 45% of the metal value of the NMC 811 Lithium-ion battery cathode at present day metal prices. • “Range anxiety” is an impediment to electric vehicle adoption. Nickel is the key ingredient to increasing ran
Slide 26: Undeveloped Class 1 Nickel Projects: After-Tax IRR and CAPEX Comparison
Undeveloped Class 1 Nickel Projects (Publicly-traded) After-tax IRR and CAPEX comparison 40% $1.6 • Low CAPEX is readily financeable 35% • CAPEX overrun risk is low $1.4 • High IRR ensures strong return on invested capital 30% $1.2 RATE OF RETURN (“IRR”) CAPEX IN USD (BILLIONS) AFTER-TAX INTERNAL 25
Slide 27: Base Metal Asset Benchmarking
Base Metal Asset Benchmarking After-tax IRR, Capital Intensity and CAPEX comparison Primary Commodity Mining Method $10,000 Kipushi (Ivanhoe Mines/Gécamines) Nickel OP = Open-Pit Tamarack UG Copper UG = Underground Arctic (Trilogy Metals) OP UG Project Cosmos Zinc Makwa Mayville UG (Western Areas) O
Slide 28: Precedent Transactions
Precedent Transactions Majority of transactions are underground (“UG”) and high-grade US$ per lb of NiEq Acquisition Adjusted Mining Lbs of Grade Inflation- Acquiror Target Project Location value Year Nominal to $8 Ni Comments method NiEq NiEq adjusted (USD M) price Vale-Inco Diamond Voisey's Canada
Slide 29: Contact Information
CONTACT INFORMATION Talon Metals Corp. Sean Werger, President swerger@talonmetals.com B: (416) 361-9636 ext.102 www.talonmetals.com https://www.linkedin.com/company/talon-metals-corp TSX:TLO 29