Talon Metals Corp. · TSX:TLO
Talon Metals — Investor Presentation (February 2021)
40 slides from Talon Metals's investor presentation, February 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 February 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: One of the most prolific nickel producers (Talnakh - Russia) January 8, 2021) was discovered over a century ago
Slide 11: January to May 2020 Exploration Program Results
JANUARY TO MAY 2020 EXPLORATION PROGRAM RESULTS 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 Tinto project operated by a junior explorati
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 CGO EAST: 350 TO 1000 METERS NORTH-EAST OF THE RESOURCE Vast exploration area with shallow mineralization Area is defined as “CGO East” and “CGO West” and is known for sheet-like sulphide mineralization with average thickness of 15 meters up to 1% NiEq, including high-gra
Slide 14: (1) Expand Present Resource: CGO East
(1) EXPAND PRESENT RESOURCE CGO EAST: 350 METERS NORTH-EAST OF THE RESOURCE Drill Target Area: CGO EAST Large step-out 350 meters north-east and up-dip of the Company’s current resource area Testing a 100m (w) x 10m(h) x 800m (l) channel of high-grade mineralization Historical holes demonstrate shee
Slide 15: (1) Expand Present Resource: CGO East
(1) EXPAND PRESENT RESOURCE CGO EAST: 350 METERS NORTH-EAST OF THE RESOURCE Drill Holes 20TK0271 and 20TK0266: o Cross Section A-A’ showing potential mineralization width of over 100 meters with up to 11.75 meters thick (2.9 to 11.75 meters) of high-grade nickel-copper sulphide mineralization: o Hol
Slide 16: (1) Expand Present Resource: CGO West
(1) EXPAND PRESENT RESOURE CGO WEST: 150 METERS NORTH-WEST OF THE RESOURCE Drill Target Area: CGO WEST Vast exploration target of 300 x 400 meters of shallow sheet-like sulphide mineralization Testing 100m (w) x 10m(h) x 400m (l) channel of high-grade mineralization (red dash line) Large step-out 15
Slide 17: (1) Expand Present Resource: SMSU Extension
(1) EXPAND PRESENT RESOURCE SMSU EXTENSION: NORTHERN PORTION OF THE RESOURCE Drill Target Area: SMSU Extension Up dip extension of the semi-massive sulphide mineralization Extends from the resource area for potentially 500 meters to the north Mineralization gets shallower to the north Testing tube s
Slide 18: (1) Expand the Present Resource
(1) EXPAND THE PRESENT RESOURCE TO THE SOUTH AND EAST TARGETING 2.3 KM STRIKE LENGTH TO THE SOUTH OF THE TAMARACK AND THE 138 ZONES TO THE EAST OF THE TAMARACK AND THE 138 ZONES Borehole electromagnetic plates (in green) indicating that the high-grade massive sulphide unit may extend to the east of
Slide 19: (2) Complete a Pre-Feasibility Study
(2) COMPLETE A PRE-FEASIBILITY STUDY RESOURCE AREA DEFINITION DRILLING AND EXPANSION 20TK0273 Drill Hole 20TK0278 (West MSU) o Intersected 21.73 meters (71.3 feet) of the high-grade MSU on the edge of the resource (assays pending) o Plan is to continue testing the West MSU towards the south and hole
Slide 20: (2) Complete a Pre-Feasibility Study
(2) COMPLETE A PRE-FEASIBILITY STUDY RESOURCE AREA DEFINITION DRILLING AND EXPANSION Drill Hole 20TK0277 o Intersected a total of 110.65 meters of 10-50% sulphide mineralization (assays pending) o Extends the SMSU mineralization northeast by ~25 meters in the UPPER SMSU o Extends the LOWER SMSU mine
Slide 21: 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 22: 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) NO SMELTING OR ROASTING NICKEL FROM MINE TO B
Slide 23: 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 24: (3) Explore the Remaining 16.5 km of the Tamarack Intrusive Complex
(3) EXPLORE THE REMAINING 16.5 KM OF THE TAMARACK INTRUSIVE COMPLEX 264 Zone Follow-up on historical >9% Ni intercepts Hole 18TK0264 intersected 0.25m outside of the expanded resource area grading 9.95% Ni, 5.74% Cu, 0.16% Co, 2.46 g/t PGE’s and 0.32 g/t Au starting Continue cost effective, advanced
Slide 25: 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 26: Capital Structure
CAPITAL STRUCTURE Shares issued 621.5M Warrants outstanding 17.6M Options outstanding 77.0M Fully diluted 716.1M Share price C$0.54 Exchange symbol TLO.TSX Market capitalization C$354M / US$277M Cash C$15.4M / US$12.1M (As at February 3, 2021) Major shareholders Resource Capital Funds 43.0% Rio Tint
Slide 27: Annex 1: Results of Preliminary Economic Assessment (PEA)
ANNEX 1 RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT (PEA) Please see the press release dated February 4, 2020 for further information. The PEA will be filed on SEDAR (www.sedar.com) within 45 days from February 4, 2020. TSX:TLO 27
Slide 28: 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 29: 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 50% 567 569 48.3% 553 High Grades 520 45.6% 45% $500 Good Recoveries 40% 36.0% 35% Shallow Mineral Deposit $400 31.9% 30% 316 316 Mining Method: Primarily bulk
Slide 30: February 2021 PEA Mine Plan
FEBRUARY 2021 PEA MINE PLAN SHALLOW UNDERGROUND MINE AMENABLE TO BULK MINING METHODS SIMPLE AND EFFICIENT MINE DUE TO: Decline ramp access from surface Long-hole stoping/drift and fill 9 year mine life (excluding construction) First ore within 2 years from start of construction 10.8 Mt mined at 1.34
Slide 31: Mine Technology
MINE TECHNOLOGY IMPLEMENT BEST AVAILABLE TECHNOLOGIES Expand mineable resource Accelerate time to production Significantly reduce CAPEX and OPEX Minimize environmental impacts Vertical Conveying Full Battery/Electric Fleet Blast-less Mining (1) ▪ Very low CAPEX ▪ Expected to be the standard when ▪ P
Slide 32: February 2021 PEA – Additional Metrics
FEBRUARY 2021 PEA – ADDITIONAL METRICS LOW CAPITAL INTENSITY, HIGH METAL RECOVERIES AND ROBUST ECONOMICS February 2021 PEA All amounts in United States dollars NICKEL SULPHATE NICKEL POWDER NICKEL CONCENTRATE March 2020 PEA SCENARIO SCENARIO SCENARIO Mine Plan Tonnage 4.9 million 10.8 million 10.8 m
Slide 33: February 2021 PEA: CAPEX and OPEX
FEBRUARY 2021 PEA: CAPEX AND OPEX INITIAL CAPEX IS READILY FINANCEABLE CAPEX OPEX (US$/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 34: Tamarack Is Economic Even at Low Metal Prices
TAMARACK IS ECONOMIC EVEN AT LOW METAL PRICES At $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 Price Case Low Base Ince
Slide 35: Annex 2: Stainless Steel Demand for Nickel Concentrates
ANNEX 2: STAINLESS STEEL DEMAND FOR NICKEL CONCENTRATES TSX:TLO 35
Slide 36: 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 37: Annex 3: Benchmarking and Public Company Comparables
ANNEX 3: BENCHMARKING AND PUBLIC COMPANY COMPARABLES TSX:TLO 37
Slide 38: Undeveloped Class 1 Nickel Projects: IRR and CAPEX Comparison
Undeveloped Class 1 Nickel Projects (Publicly-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 $1.2 30% Sulphate $1.0 25% Scenario $0.8 20% $0.6 15% Sulphate 10% Scenario $0.4 5% P
Slide 39: Base Metal Asset Benchmarking
Base Metal Asset Benchmarking After-tax IRR, Capital Intensity and CAPEX comparison Primary Commodity Mining Method $10,000 Kipushi (Ivanhoe Mines/Gécamines) Nickel OP = Open-Pit Copper UG = Underground Arctic (Trilogy Metals) OP UG UG Cosmos Zinc Makwa Mayville Tamarack Capital Intensity (US$ / lb
Slide 40: 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 40