Earlier this week, Talon Metals Corp. (TSX:TLO) revealed a record drill result from a hole at its Tamarack project in Minnesota, and analysts at Stifel GMP have taken notice.
In a flash note published Thursday, the firm noted that these assay results from 17 holes, including one which showed 6.04% nickel and 2.85% copper over a length of 23.44 meters (m), are a great sign for the feasibility study expected in 2023.
The intercept was hit starting at 453.73m depth and also showed 0.12% cobalt, 0.49 grams per ton (g/t) palladium, 0.62 g/t platinum and 0.35 g/t gold (7.58% nickel-equivalent and 20.20% copper-equivalent).
“While the feasibility study, due in 2023, remains the most significant near-term catalyst, we continue to look for encouraging results from both infill, expansion and regional drilling, consistent with our thesis that exploration is likely to define a much larger resource than envisioned in the 2021 PEA,” the analysts said. “Management continues to target the first production in 2026.”
READ: Talon Metals unveils new record drill result at Tamarack project in Minnesota
The firm continued, “With the existing resource showing good continuity and new district scale anomalies about to be tested (all nearby and within trucking distance of the main resource), we are increasingly confident that the Tamarack resource will grow beyond that defined in the 2021 PEA, supporting our assumed mine life of 17 years with NiEq production of 22 [kilotonnes per year]”
Stifel also noted that the news solidifies Talon's interest in the Tamarack project at 60% and should prompt its partner, Rio Tinto, to contribute its 40% share of costs.
These results, along with the recently evoked Defense Production Act, the rising demand for class 1 nickel for the production of EV batteries and the 2022 Tesla supply agreement, “positions the Tamarack Nickel project as one of the most strategic projects for the US in securing a domestic supply for its green transition,” according to Stifel.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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