Rio Tinto (ASX: RIO)-backed Talon Metals (TSX: TLO) announced on Monday it has made a “historic” discovery at the Tamarack nickel-copper project in central Minnesota. Shares of the company hit their highest intraday level in almost a year.
Drill hole 25TK0563 intercepted a cumulative length of 34.9 meters of nickel mineralization – the longest ever recorded on the property – starting at 762.34 meters, Talon said. The assays haven’t been graded yet. The previous record was 23.4 metres from drilling in 2022.
The sulphide in the new hole could be similar to the massive sulphide found in drill hole 16TK0250, suggesting grades may be similar, Talon said.
Hole 16TK0250, which was re-examined and extended from 649 meters depth, cut 8.25 meters grading 12.62% nickel, 13.88% copper and 17.95 grams per tonne platinum group elements and gold at a depth of 707.75 meters, Talon said.
“In my 19 years working on the Tamarack Project, I’ve never seen anything like this,” Talon chief exploration and operations officer Brian Goldner said in a statement. “This 34.9-meter intercept of high-grade massive sulphide isn’t just the longest ever recorded at Tamarack — it’s a defining moment. It confirms what we’ve believed all along: that Tamarack is a truly world-class system.”
Shares of Talon Metals soared 29% to 13.5 ¢ apiece in Toronto Monday, having hit a 10-month high of 15 ¢ earlier. The company has a market capitalization of about $127 million.
Feasibility study
Since early February, Talon’s in-house exploration team has been infilling and outfilling the Tamarack resource area to support a feasibility study for the Tamarack project. Its first significant discovery from that work was a massive sulphide intercept measuring over 8.25 metres. The latest discovery, however, is four times that length.
The deposit has an estimated resource of 8.6 million indicated tonnes grading 1.73% nickel and 0.92% copper and 8.5 million inferred tonnes grading 0.83% nickel and 0.55% copper, according to a 2022 update.
Talon is currently the majority owner (51%) and operator of the Tamarack project, with mining major Rio Tinto as its joint venture partner.
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