Talon Metals (TLO.TO) has announced a first resource estimate on the Tamarack exploration project in Minnesota, where the company can earn a 30% interest from Kennecott, a subsidiary of Rio Tinto (RIO). This maiden resource estimate shows an indicate resource of 3.75M tonnes at 2.35% NiEq and an additional 3.11M tonnes at 1.65% NiEq, for a total nickel-equivalent content of just over 300 million pounds at an average rock value of in excess of $400/t for the indicated resource.
This is an encouraging start as the surface area where this resource estimate was based on is quite limited and there’s much more to explore on the Tamarack tenements. According to Talon’s executive chairman, only a few hundred meters of the total 18 kilometer strike length have been included in this resource estimate, so we think there’s considerable upside potential to further advance this project. The company’s iron ore project in Brazil will be virtually worthless at the current iron ore price, but fortunately the Tamarack project could get investors excited again.
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Disclosure: The author holds no position in Talon Metals. Please see our disclaimer for current positions.
