Talon Metals (TSX: TLO; US-OTC: TLOFF) has announced a preliminary economic assessment for the Tamarack zone at its Tamarack North nickel-copper-cobalt project in Minnesota.
The study assigns the project a $210 million after tax net present value at a 7% discount rate and a 38.8% after-tax internal rate of return with payback in 2.1 years.
The project would require $174.31 million in initial capital and US$8.2 million in sustaining capital. It would produce 23.3 million lb. nickel and 11.1 million lb. copper per year over a 7 year mine life, processing 1,390 tonnes per day.
The project contains 3.63 million indicated tonnes grading 1.83% nickel, 0.99% copper, 0.05% cobalt, 0.42 gram per tonne platinum, 0.26 gram palladium and 0.2 gram gold, or 2.45% nickel equivalent. It also contains 4.38 million inferred tonnes grading 1.58% nickel, 0.92% copper, 0.04% cobalt, 0.29 gram platinum, 0.18 gram palladium and 0.16 gram gold, or 2.11% nickel equivalent.
The company currently has an 18.45% interest in the project. It is working toward a 60% interest. It optioned the property from Kennecott Exploration, a Rio Tinto (LON; RIO; NYSE: RIO) subsidiary, in June 2014.
In June 2018, the company reached an agreement with Resource Capital Fund VI to extend its $16 million convertible loan maturity date to April 2, 2019.
Shares of Talon Metals are currently trading at 9 ? with a 52-week range of 4 ? to 12 ?. The company has a $12 million market capitalization.