Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (December 2016)
39 slides from Talon Metals's investor presentation, December 2016
Slide 1: Tamarack Project
Tamarack Project December 2016 Nickel-Copper-PGE www.talonmetals.com TSX: TLO TAMARACK
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 m
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 stat
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 exp
Slide 5: Experienced Management Team with a Track Record Of Project Delivery
Experienced Management Team with a Track Record Of Project Delivery Warren Newfield • Founded Platexco (platinum exploration) in 1997, sold to Impala in 2000 for C$191MM • Founded AfriOre Ltd. (platinum exploration) in 2001, sold to Lonmin in 2007 for C$496MM (Executive Chairman) • Founded CIC Energ
Slide 6: Executive Summary
EXECUTIVE SUMMARY TAMARACK 6
Slide 7: Executive Summary
Executive Summary • Talon currently owns an 18.45% interest in the Tamarack Ni-Cu-PGE Project (includes the Tamarack North Project and the Tamarack South Project), located in Minnesota, USA • Talon has no further funding obligations to earn its interest in the Tamarack Project • The remaining 81.55%
Slide 8: Executive Summary - Continued
Executive Summary - Continued • In April 2015, Talon Metals announced an updated mineral resource estimate on the Tamarack North Project (all within an area called the Tamarack Zone), with: • 3.75 million tonnes in the indicated category at 2.35% Ni Eq; and • An additional 3.4 million tonnes in the
Slide 9: Commercial Transaction with Kennecott
COMMERCIAL TRANSACTION WITH KENNECOTT TAMARACK 9
Slide 10: Talon Owns an 18.45% Interest in the Tamarack Project
Talon Owns an 18.45% Interest in the Tamarack Project • Talon spent a total of US$25.5 million to earn an 18.45% interest in the Tamarack Project, with all of the funds advanced being used to fund exploration expenditures, a one-time US$1 million upfront payment to Kennecott and certain land acquisi
Slide 11: Next Steps: Co-funding Winter Exploration Program
Next Steps: Co-funding Winter Exploration Program • In December 2016, Kennecott and Talon agreed to co-fund an approximate US$3,500,000 winter exploration program, with Talon funding 18.45% of this program. • On or before September 25, 2017, Kennecott must elect whether to give Talon the right to pu
Slide 12: Kennecott to Make its Key Decision in 2017
Kennecott to Make its Key Decision in 2017 Kennecott may, at any time prior to September 25, 2017, give Talon the option to purchase the Tamarack Project or elect that that parties participate in a 81.55/18.45 JV under the established Mining Venture Agreement (MVA) KEX (81.55%) OPTION TO FORM MVA PU
Slide 13: The Tamarack Project
THE TAMARACK PROJECT TAMARACK 13
Slide 14: Tamarack Project: Excellent Infrastructure with Grid Power and a Railway Line on Site
Tamarack Project: Excellent Infrastructure with Grid Power and a Railway Line on Site The Tamarack Project is located adjacent to the town of Tamarack in north-central Minnesota approximately 85 km west of Duluth and 200 km north of Minneapolis, in Aitkin and Carlton Counties Tamarack Igneous Comple
Slide 15: Extremely Large – 18km of Strike Length
The Tamarack Igneous Complex is Extremely Large – 18km of Strike Length The Tamarack Igneous Complex (TIC) is comparable in footprint size to some of the world’s largest and most prolific nickel-copper-platinum intrusive complexes TAMARACK 15
Slide 16: Tamarack North Project
TAMARACK NORTH Platexco PROJECT TAMARACK 16
Slide 17: Tamarack North Project
Tamarack North Project - Hosts the Tamarack Zone that contains an independent mineral resource estimate (see slides 19 and 20) - Most drilling to date has been Platexco focused on the Tamarack Zone. Talon Metals Recent drilling has focused on expanding the MSU in the Tamarack Zone. - A number of Exp
Slide 18: The Tamarack Zone: Mineralized units of SMSU, MSU and 138 Zone
The Tamarack Zone: Mineralized units of SMSU, MSU and 138 Zone Semi Massive Sulphide Unit: Net textured to disseminated sulphide zone, (80-30% sulphide) within SMSU: massive zoned tubular body of 30-80m wide, 60-160m thick and at least 600m long, hosted by the CGO intrusion. Massive Sulphide Unit: M
Slide 19: The Tamarack Zone: Defined Mineral Resource in SMSU, MSU and 138 Zone
The Tamarack Zone: Defined Mineral Resource in SMSU, MSU and 138 Zone Platexco Talon Metals 19 TAMARACK 19
Slide 20: NI 43-101 Resource in Tamarack and 138 Zones
NI 43-101 Resource in Tamarack and 138 Zones • Maiden NI 43-101 Resource Estimate (29 August 2014) • Updated NI 43-101 Resource Estimate (3 April 2015) increased the inferred resource tonnage in the MSU by 167% to 422,000 tonnes @ 7.26% NiEq based on successful step out drilling in 2014, (14TK0211 a
Slide 21: Mineral Resources and Grades at Various cut-off Grades (Effective April 3, 2015)
Mineral Resources and Grades at Various cut-off Grades (Effective April 3, 2015)1 NiEq* Tonnes Cu Co Pt Pd Au NiEq* Cut-Off Classification Ni (%) (000) (%) (%) (g/t) (g/t) (g/t) (%) (%) Indicated 3,922 1.75 0.97 0.05 0.40 0.25 0.19 2.28 0.8 Inferred 4,235 1.42 0.84 0.04 0.28 0.17 0.15 1.86 Indicated
Slide 22: Exploration Results 2015 – 2016
Exploration Results 2015 – 2016 TAMARACK NORTH PROJECT • Tamarack and 138 Zone (2015/16) •MSU North-eastern Trend •MSU South-eastern Trend •Tamarack SMSU •138 Zone • 221 Zone (2015/16) • CGO Bend (2016) • 480 Zone (2015) • 164 Zone (2015) • 142 Zone (2015) TAMARACK SOUTH PROJECT • The Neck/218 Zone
Slide 23: Tamarack Zone – Potential extension of the North-eastern MSU trend
Tamarack Zone – Potential extension of the North-eastern MSU trend1 Potential extension of North-eastern MSU trend by 150m with drill holes: • 16TK0243: 10.50 m of MMS at 5.88 % Ni, 2.32% Cu, 0.93 g/t PGE’s, 0.09g/t Au • 16TK0235: 10.83 m of MMS at 4.90% Ni, 2.47% Cu, 0.76 g/t PGE and 0.14 g/t Au •
Slide 24: Tamarack Zone – Potential extension of the South-eastern MSU trend
Tamarack Zone – Potential extension of the South-eastern MSU trend1 Potential extension of South-eastern MSU trend by 140m with drill holes; • 16TK0233A: 9.00 m of 4.94% Ni 2.08% Cu, 1.00 g/t PGE’s and 0.24 g/t Au. • 16TK0234: 5.05 m of 4.49% Ni, 1.86% Cu, 1.11g/t PGE’s and 0.27g/t Au • 16TK0246: 4.
Slide 25: Tamarack Zone – SMSU intersections
Tamarack Zone – SMSU intersections1 New SMSU intersections have supported the SMSU mineralization outlined by Talon TAMARACK 1 See Talon’s Press Release dated, Nov 22, 2016 25
Slide 26: Tamarack Zone – Extension of 138 Zone
Tamarack Zone – Extension of 138 Zone1 Potential extension of 138 Zone to south-east and south-west with drill holes; • 16TK0245; 117 m of 0.63% Ni, 0.46% Cu, 0.37 g/t PGE’s and 0.12 g/t Au • 16TK0248; 130 m of 0.87%Ni, 0.60% Cu, 0.35 g/t PGE’s and 0.15 g/t Au • 16TK0250; 91 m of 0.62% Ni, 0.42% Cu,
Slide 27: 221 Zone – New Mineralized Target 1.8km north of Tamarack
221 Zone – New Mineralized Target 1.8km north Tamarack (2015 drilling)1 • Defined by a gravity anomaly that corresponds with the underlying CGO intrusion • Discovery hole 15TK0221 intercepted massive nickel-copper-PGE sulphide mineralization with an associated DHEM off-hole anomaly located approxima
Slide 28: 221 Zone (cont.) - 2016 Drilling
221 Zone (cont.) - 2016 Drilling 1 Continued success with 2016 drilling • 16TK0231; 4.74 m at 1.77% Ni, 1.22% Cu, 1.02g/t PGEs and 0.31g/t Au from 684m depth • Including 1.31m at 3.78% Ni, 1.65% Cu, 1.20 g/t PGE’s and 0.31 g/t Au from 687.43m depth. • 16TK0239; 2.26 m of 1.28% Ni, 0.80% Cu, 0.31 g/t
Slide 29: CGO Bend – Shallow target up-dip of Tamarack Zone
CGO Bend – Shallow target up-dip of Tamarack Zone1 • Massive sulphide mineralization at base of FGO on both east and west flanks of the CGO as demonstrated by historical drill holes • 16TK0238: 2.2 m of 1.75% Ni, 0.89% Cu, 0.32 g/t PGE’s and 0.12 g/t Au from depth 117.72 m • DHEM conductor2 from 16T
Slide 30: CGO Bend – Exploration results (cont.)
CGO Bend – Exploration results (cont.) 1 • Potential continuity of mineralization also demonstrated by coincident: • DHEM conductors2 • Time domain electromagnetic (TDEM) anomaly from survey on eastern flank • Shallow and up-dip connection to the Tamarack Zone make the target potentially strategic f
Slide 31: 480 Zone
480 Zone • Potentially shallow target 3 to 4.5 km north of the Tamarack Zone. Previous drilling has intersected wide zones of disseminated mineralization at depths 40-75m. • Drill holes 15TK0215 and 15TK02251 were drilled approximately 3 km north of the Tamarack Zone Platexco Talonprominent targetin
Slide 32: 164 Zone
164 Zone • Previous drilling has intersected mixed zones of disseminated and massive sulphide mineralization at the base of the FGO and mixed zone (MZ) intrusions. • The target is the MSU where it is potentially hosted along an axis (keel) at the base of the FGO. • Targeting of this keel can be guid
Slide 33: 142 Zone
142 Zone • Drill hole 15TK0226 was drilled as part of the 2015 winter exploration program and is located 2km south of the Tamarack Zone1. • It targeted a DHEM off-hole anomaly surveyed previously from drill hole 12LV0142. Platexco Talon Metals • The FGO-sediment contact was intersected at a higher t
Slide 34: Tamarack South Project
Platexco TAMARACK SOUTH PROJECT TAMARACK 34
Slide 35: Tamarack South Project
Tamarack South Project Tamarack South Project consists of two areas: • The “Neck” Platexco • The “Bowl” - large layered lopolith to the south. In 2015, 3 holes were drilled in the “Neck” and “Bowl” In 2016, a further 2 holes and 4 deflections were drilled in the Neck, 35 TAMARACK 35
Slide 36: Tamarack South: The Neck: Exploration Potential Confirmed
Tamarack South: The Neck: Exploration Potential Confirmed1 • The “Neck” is located approximately 3.5 km south of the Tamarack Zone on a large gravity anomaly. • It has been interpreted based on similar geochemistry, as a possible entry point to the larger “Bowl” or lopolithic intrusion to the south,
Slide 37: Tamarack South: The Neck; Results (cont.)
Tamarack South: The Neck; Results (cont.)1 15TK0218; targeting the gravity high, provided evidence for sulphide settling at base of FGO and an association with strong DHEM conductor to the west. 15TK0218A; deflection with 50m step-out targeting DHEM conductor to west. Intersected a thicker zone of d
Slide 38: Talon Capital Structure
TALON CAPITAL STRUCTURE (as of December 2016) TAMARACK 38
Slide 39: Talon Capital Structure
Talon Capital Structure TSX:TLO Issued Shares: 129.6 million Total Diluted Shares: 151.8 million 1 Royalty: • Receive up to 30 million Rand (SA) from its royalty on the Boikarabelo Coal Mine in South Africa owned by Resource Generation Ltd (ASX:RES) RCF Loan: • On December 29, 2015, Talon received U