Drill results from Talon Metals Corp’s newly-discovered Raptor Zone at its Tamarack nickel-copper-cobalt project located in Minnesota have highlighted the district scale and high-grade resource growth potential of the project, according to analysts at Stifel GMP.
In a note to clients, analysts wrote that the results showcased high-grade albeit narrow intercepts reaffirming the strong regional potential and room for resource growth within the complex.
“With 1,500 m of prospective ground and intercepts on either end, Talon stated that this undrilled area of the 'Raptor Zone' has a sufficient footprint to fit more than 50 of the CGO West resource area, making it a top exploration target,” the analysts wrote.
They said, with continued exploration success, they are confident their current resource estimate for the project could be met, and ultimately exceeded, without diluting grade.
“However, uncertainty remains in terms of project operating and economic metrics, with the reconfigured project, mining in Minnesota and processing in North Dakota, to be clarified during the Feasibility Study (FS) later in 2023,” the analysts pointed out.
“Should drilling define another high-grade resource with the Raptor Zone, however, we believe the FS could be pushed into 2024 as a revised and enhanced mine plan is developed.”
As such, Stifel's analysts reiterated their ‘Buy’ rating for the stock and C$0.80 price target. Talon’s shares were trading up 3% at C$0.34 on Thursday morning.
“We reiterate that the proposed plan substantially de-risks the project's timeline, increasing our confidence in Talon's ability to achieve a 2026/2027 production start-up while exploration continues to grow the resource,” the analysts concluded.
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