Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (April 2021)
37 slides from Talon Metals's investor presentation, April 2021
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) JOINT VENTURE TSX:TLO April 2021
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 two 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 soph
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 To earn a 51% interest in the Tamarack Land package of approximately 31,000 acres Nickel Project, Tal
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 Henri van Rooyen managed large exploration projects across 3 Sean Werger & Acquisitions at Tau Capital, with project 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: January to May 2020 Exploration Program
JANUARY TO MAY 2020 EXPLORATION PROGRAM TALON’S FIRST PROGRAM AS OPERATOR A HUGE SUCCESS Increased resource confidence through a successful definition drill program and intersected mixed massive sulphides outside of the Company's resource area Talon Approved as Operator in October 2019 First Rio Tin
Slide 12: Talon's Strategy
TALON’S STRATEGY 1 Expand the present resource: Targeting 2.3 km strike length Present resource strike length: 0.8 km Expansion strike length: 1.5 km: Target both massive and disseminated sulphides 2 Complete a Prefeasibility Study Secure an off-take partner for an integrated battery supply chain or
Slide 13: (1) Expand Present Resource: CGO East
(1) EXPAND PRESENT RESOURCE RECENT RESULTS: CGO EAST Vast exploration area with shallow mineralization outside of the resource area Area is defined as “CGO East” The current drilling suggest a continuous sulphide mineralization of +500 meters of strike length with thickness variation of 10 to 34 met
Slide 14: (1) Expand Present Resource: CGO West
(1) EXPAND PRESENT RESOURCE RECENT RESULTS: CGO WEST Vast exploration area with shallow mineralization outside of the resource area Area is defined as “CGO WEST” The current drilling suggest a continuous sulphide mineralization of +200 meters of strike length with thickness variation of 5 to 35 mete
Slide 15: To the South and East Targeting 2.3 km Strike Length
(1) EXPAND PRESENT RESOURCE TO THE SOUTH AND EAST TARGETING 2.3 KM STRIKE LENGTH POTENTIAL RESOURCE SOUTH OF THE TAMARACK RESOURCE The geology of the Tamarack resource area potentially extends south to or beyond drill hole 12TK0164 The potential to extend the resource mineralization relies on the us
Slide 16: Resource Area Expansion: 138.18 Meters of 2.26% NiEq
(2) COMPLETE A PRE-FEASIBILITY STUDY RESOURCE AREA EXPANSION: 138.18 METERS (453.35 FEET) OF 2.26% NIEQ 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- massiv
Slide 17: Resource Area Definition Drilling and Expansion
(2) COMPLETE A PRE-FEASIBILITY STUDY RESOURCE AREA DEFINITION DRILLING AND EXPANSION 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 TSX:TLO 17
Slide 18: Green Nickel – From Mine to the Final Battery
(2) COMPLETE A PRE-FEASIBILITY STUDY GREEN NICKELTM – FROM MINE TO THE FINAL BATTERY Talon’s Proposed Nickel Supply Chain Options for Batteries Current Nickel Supply Chain for Batteries Nickel Powder Scenario Nickel Sulphate Scenario Nickel Concentrate Scenario MINE MINE transport Small Footprint -
Slide 19: What Is Green Nickel?
(2) COMPLETE A PRE-FEASIBILITY STUDY: WHAT IS GREEN NICKELTM? “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) HIGH GRADE = SMALL FOOTPRINT NICKEL FROM MINE
Slide 20: Green Nickel – Don't Build Tailings Dams
(2) COMPLETE A PRE-FEASIBILITY STUDY GREEN NICKELTM – DON'T BUILD TAILINGS DAMS At the high-grade Tamarack Nickel Project: • No tailings dam • Tailings will be cemented underground Precedent of a Filtered Tailings Facility, Greens • Remaining (low grade sulphur) tailings will be Creek, Alaska stored
Slide 21: Explore the Remaining 16.5 km of the Tamarack Intrusive Complex
(3) EXPLORE 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 in
Slide 22: Upcoming Catalysts
UPCOMING CATALYSTS 2021 25,000 – 30,000 meter drilling program throughout 2021 Expand the resource up-dip and to the north, with the goal of reducing timeline to production Possible extensions of the high-grade Massive Sulphide Unit within the Tamarack Project’s current resource area to the “At the
Slide 23: Capital Structure
CAPITAL STRUCTURE Shares issued 682.4M Warrants outstanding 43.0M @ avg of C$0.58 Options outstanding 82.3M @ avg of C$0.26 Fully diluted 807.6M Share price C$0.73 Exchange symbol TLO.TSX Market capitalization C$498M / US$307M Cash C$44.0M / US$35.1M (As at April 1, 2021) Major shareholders Resource
Slide 24: 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 25: 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 26: 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% $400 Shallow Mineral Deposit 31.9% 30% 316 316 Mining Method: Primarily bulk
Slide 27: February 2021 PEA Mine Plan
FEBRUARY 2021 PEA MINE PLAN SHALLOW UNDERGROUND MINE AMENABLE TO BULK MINING METHODS EFFICIENT MINE DUE TO: Decline ramp access from surface Long-hole stoping/drift and fill 9 year mine life (excluding construction) First ore within 2 years from start of construction 10.8 Mt mined at 1.34% Ni (1.85%
Slide 28: Mine Technology
MINE TECHNOLOGY IMPLEMENT BEST AVAILABLE TECHNOLOGIES Expand mineable resource Accelerate time to production Significantly reduce CAPEX and OPEX Minimize environmental impacts Vertical Conveying Full Battery/Electric Fleet Blast-less Mining (1) ▪ Very low CAPEX ▪ Expected to be the standard when ▪ P
Slide 29: February 2021 PEA – Additional Metrics
FEBRUARY 2021 PEA – ADDITIONAL METRICS LOW CAPITAL INTENSITY, HIGH METAL RECOVERIES AND ROBUST ECONOMICS February 2021 PEA All amounts in United States dollars NICKEL SULPHATE NICKEL POWDER NICKEL CONCENTRATE March 2020 PEA SCENARIO SCENARIO SCENARIO Mine Plan Tonnage 4.9 million 10.8 million 10.8 m
Slide 30: February 2021 PEA: CAPEX and OPEX
FEBRUARY 2021 PEA: CAPEX AND OPEX INITIAL CAPEX IS READILY FINANCEABLE CAPEX OPEX (US$/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 31: 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 32: Annex 2: Stainless Steel Demand for Nickel Concentrates
ANNEX 2: STAINLESS STEEL DEMAND FOR NICKEL CONCENTRATES TSX:TLO 32
Slide 33: 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 34: Annex 3: Benchmarking and Public Company Comparables
ANNEX 3: BENCHMARKING AND PUBLIC COMPANY COMPARABLES TSX:TLO 34
Slide 35: After-Tax IRR and CAPEX Comparison
UNDEVELOPED CLASS 1 NICKEL PROJECT (PUBLICY TRADED) AFTER-TAX IRR AND CAPEX COMPARISON 50% Powder/Concentrate $1.8 45% Scenarios $1.6 40% $1.4 RATE OF RETURN (“IRR”) CAPEX IN USD (BILLIONS) 35% AFTER-TAX INTERNAL Sulphate $1.2 30% Scenario $1.0 25% $0.8 20% $0.6 15% Sulphate 10% Scenario $0.4 5% Pow
Slide 36: Base Metal Asset Benchmarking: IRR, Capital Intensity and CAPEX
BASE METAL ASSET BENCHING AFTER-TAX IRR, CAPITAL INTENSITY AND CAPEX COMPARISON Primary Commodity Mining Method $10,000 Kipushi (Ivanhoe Mines/Gécamines) Nickel OP = Open-Pit Copper UG = Underground Arctic (Trilogy Metals) OP UG UG Cosmos Zinc Makwa Mayville Tamarack Capital Intensity (US$ / lb NiEq
Slide 37: 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 Visit our new interactive website! TSX:TLO 37