Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (December 2019)
21 slides from Talon Metals's investor presentation, December 2019
Slide 1: Tamarack Project
TAMARACK PROJECT HIGH-GRADE NICKEL-COPPER-COBALT JUST IN TIME TO ESTABLISH A STRATEGICALLY IMPORTANT SUPPLY OF BATTERY GRADE NICKEL IN THE USA TALON METALS CORP. (TLO:TSX) RIO TINTO (KENNECOTT EXPLORATION COMPANY) JOINT VENTURE December 2019
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 Mining specialist private equity fund TLO:TSX 5
Slide 6: Tamarack Project - Key Highlights
TAMARACK PROJECT - KEY HIGHLIGHTS The Tamarack Project is one of two high-grade* Ni-Cu-Co projects on infrastructure discovered in the 21st century To date, the Company has been predominantly funded by with a resource prepared in accordance with NI 43-101 suitable sophisticated resource funds with s
Slide 7: Rio Tinto, through Kennecott Exploration, is our active joint venture partner
RIO TINTO, THROUGH SUBSIDIARY KENNECOTT EXPLORATION COMPANY (KEX), IS OUR ACTIVE JOINT VENTURE PARTNER The Tamarack Project is comprised of the Tamarack North Plan view of the Tamarack Project and the Tamarack South Project with 31,000 acres Intrusive Complex (TIC) of Private Land and State Leases s
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 Henri van Rooyen managed large exploration projects across 3 President, Head of Investor & Acquisitions at Tau Capital, with project CEO divestments of minin
Slide 9: High-grade sulphide deposits are the preferred, low cost sources of nickel
HIGH-GRADE SULPHIDE DEPOSITS ARE THE PREFERRED, LOW COST SOURCES OF NICKEL BUT ARE DIFFICULT TO FIND THEREFORE NICKEL SULPHIDE NEW HIGH-GRADE NICKEL AND EXISTING NICKEL SULPHIDE MINE PRODUCTION AS A % OF SULPHIDE DISCOVERIES ARE MINE GRADES CONTINUE TO TOTAL NICKEL PRODUCTION WILL DIFFICULT TO FIND
Slide 10: The Tamarack Intrusive Complex strikes over approximately 18 km
THE TAMARACK INTRUSIVE COMPLEX (TIC) STRIKES OVER APPROXIMATELY 18 KM. FOLLOW-UP DRILLING TO THE FIRST DISCOVERY HOLE CULMINATED IN A RESOURCE* One of the most prolific nickel producers (Talnakh - Russia) was discovered *Tamarack North Project NI 43-101 Mineral Resource Estimate over a century ago.
Slide 11: Our focus is on expansion of the Massive Sulphide Unit
OUR FOCUS IS ON EXPANSION OF THE MASSIVE SULPHIDE UNIT (MSU) 0.25m @ 9.95% Ni TWO WAYS TO EXPAND: 1KM (1) Expand present resource 0.6MI 1.63m @ 9.33% Ni (2) Follow-up on distant high-grade intercepts WE ARE PURSUING BOTH THROUGH: 7.74m @ 8.01% Ni (1) Effective drilling techniques (2) Advanced geophy
Slide 12: (1) Expand the present resource
(1) EXPAND THE PRESENT RESOURCE Potential MSU SMSU A A` Massive Sulphide Unit (MSU) Tamarack CGO hump • MSU has grown over time and remains open in all directions: • Western MSU discovered in 2008 • 138 Zone MSU discovered in 2012 A A` • Eastern MSU discovered in 2015 • Drill hole 12TK0160 intersect
Slide 13: (2) Follow up on distant high-grade intercepts
(2) FOLLOW UP ON DISTANT HIGH-GRADE INTERCEPTS High grade intercepts from drill holes show potential for resource expansion over a large distance 264 Zone 221 Zone 164 Zone Drill hole: 12TK0164 : 3.67% Ni, Drill hole 18TK0264 : 9.95% Ni, 5.4% Cu, Drill holes 15TK0229: 1.97% Cu, 814 ppm Co, 0.12 g/t
Slide 14: Excellent metallurgical recoveries and low deleterious elements in concentrates
EXCELLENT METALLURGICAL RECOVERIES AND LOW DELETERIOUS ELEMENTS IN CONCENTRATES* Ni 85.0% Cu 94.5% RECOVERY TOTAL RECOVERY 14.5% Grade 28.9% Grade • High quality nickel concentrates are in high demand. We expect EXCELLENT this trend to continue • We are therefore investigating two possibilities: QUA
Slide 15: Production Options
PRODUCTION OPTIONS OPTION 1: Produce Concentrates for Smelters (Traditional) MINE CONCENTRATE 67% * IsLondon what the smelter typically pays the mine (of the Metal Exchange (LME) nickel price) 3.09% Ni* 14.5% Ni* OPTION 2: Produce Sulphates for Electrical Vehicle Batteries (At Site) PRODUCE MINE CON
Slide 16: U.S. based 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, Benchmar
Slide 17: Test program to develop a process to produce nickel sulphates for the EV market
TEST PROGRAM TO DEVELOP A PROCESS TO PRODUCE NICKEL SULPHATES FOR THE EV MARKET ON SITE, DIRECT SALE 2 Tonnes The amount of drill core available for metallurgical testing and process development for EV As a result we have commissioned a test program to develop a process for the production of nickel
Slide 18: Our Initial Preliminary Economic Assessment, dated December 14, 2018
OUR INITIAL PRELIMINARY ECONOMIC ASSESSMENT, DATED DECEMBER 14, 2018 ASSUMED PRODUCTION OF NICKEL CONCENTRATES FOR SMELTERS FROM A SUBSET OF THE TOTAL RESOURCE Long section looking east showing the outline of the Initial PEA mine plan This Initial PEA showed a robust IRR even under depressed against
Slide 19: In Summary
IN SUMMARY OUR IMMEDIATE VALUE CATALYSTS ARE: Expand the Massive Sulphide Unit Conduct a metallurgical test program (MSU), which even compared to high to develop a process for a domestic grade nickel sulphide mines has US supply chain of nickel sulphates exceptional high nickel grades Update the Ini
Slide 20: Capital Structure
CAPITAL STRUCTURE Shares issued 494.3M Warrants outstanding 32.0M Options outstanding 54.9M Fully diluted 581.3M Share price (Nov. 30/19) $0.155 Exchange symbol TLO:TSX Market capitalization C$76M Cash (Nov. 30/19) C$8.0M Major shareholders* Resource Capital Funds 48.3% Rio Tinto 6.1% Management and
Slide 21: Contact Information
CONTACT INFORMATION Talon Metals Corp. Investor Cubed Inc. Sean Werger, President Neil Simon, CEO swerger@talonmetals.com nsimon@investor3.ca B: (416) 361-9636 ext.102 B: (647) 258-3310 www.talonmetals.com 21