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Talon Metals announces lump and sinter feed potential at the Trairão Iron Project, Brazil


Talon Metals announces lump and sinter feed potential at the Trairão Iron Project, Brazil

TSX:TLO

ROAD TOWN, Tortola, British Virgin Islands, March 25, 2013 /CNW/ - Talon Metals Corp. ("Talon" or the "Company") (TSX: TLO) is pleased to expand on its previous announcements regarding the potential for a high grade, near surface resource that may be amenable to producing direct shipping ore from its 100% owned Trairão Iron Project ("Trairão Project"), located in Pará State, Brazil.

Highlights


    --  Recent announcements by the Brazilian government regarding
        infrastructure improvements throughout Pará State could
        positively impact a potential lump and sinter feed operation
        from the Trairão Project
    --  Completed metallurgical screening test work in Brazil of
        samples from the Company's recent auger drilling program on the
        surficial deposit has rendered positive results, indicating
        that there is potential for lump and sinter feed production
        from the Trairão Project
    --  Various samples have been sent to Ausenco and Gekko Systems in
        Australia for confirmation of previous, and further,
        metallurgical test work - for which results are expected in Q2
        2013
    --  Results will form the basis for the decision to commission a
        Preliminary Economic Assessment on the surficial deposit at the
        Trairão Project

"Our evaluation of samples from a recent auger drilling program has indicated 
that the surficial deposit of the Trairão Project has potential for lump and 
sinter feed production", said Henri van Rooyen, CEO of Talon.  "We are 
excited about the recent announcements by the Brazilian government of their 
intended infrastructure improvements in the region of the Trairão Project, as 
this establishes the basis for preparing for a lump and sinter feed operation, 
which fits within our stated strategy of generating meaningful cash flow with 
low capital expenditure requirements.  In addition, the current work being 
undertaken by Talon is not capital intensive, and we remain in a strong cash 
position with approximately $15.5-million."

Positive Infrastructure Developments

The Company's recent activities in regards to further analyzing the potential 
for high grade material from the surficial deposit at the Trairão Project 
stems from a number of factors, including, (i) the Company's stated objective 
to generate near term cash flow, (ii) the signing by the Company of a Letter 
of Intent with a potential off-taker of lump material from the surficial 
deposit at the Trairão Project, and most importantly, (iii) recent 
announcements by the Brazilian government concerning infrastructure 
improvements throughout Pará State, which could positively impact a lump and 
sinter feed operation from the Trairão Project.

On March 6, 2013 and March 20, 2013, the federal government of Brazil 
announced its plan to make a number of infrastructure improvements throughout 
Pará State, where the Trairão Project is located.  As part of its plan, the 
federal government stated that it would, among other things, complete a tender 
process over the next three months for: (1) upgrading the BR-155 highway; and 
(2) clearing a portion of the Tocantins River, which will open up this 
waterway for the barging of bulk materials, including iron ore.  These 
statements and initiatives by the federal government are particularly 
meaningful for the Company, as a lump and sinter feed operation from the 
Trairão Project will require trucking the material using the BR-155 highway 
and barging such material along the Tocantins River to the Vila Do Conde port, 
which is being expanded to accommodate additional shipping capacity and 
potentially larger vessels.

Lump and Sinter Feed Potential

Further to the Company's press releases dated September 27, 2012 and November 
22, 2012, the evaluation of samples from the surficial deposit at the Trairão 
Project, which are the result of weathering of banded iron formation ("BIF") 
units, has indicated a potential for a lump and sinter feed material.

SGS-Geosol Laboratórios Ltda (in Vespasiano, Minas Gerais, Brazil), which is 
ISO 14001:2004 and ISO 9001:2008 accredited and is independent of Talon, 
assayed three samples taken from Areas 1 and 2 of the Trairão Project. These 
samples were taken by Talon from surface to a depth of approximately five 
metres, and approximately 50kg of surficial material was collected per hole.  
The material was dried and homogenised on site and then shipped to SGS in 
Parauapebas (in Pará State, Brazil) where the samples were split into smaller 
fractions of 13 to 28kg.  The head samples were initially weighed and assayed 
and then screened into three size fractions, being: lump (>6.35mm); sinter 
(6.35mm and >1mm); and fines (1mm).  Each of the three size fractions was 
also weighed and assayed.

The results from these samples were as follows:

 _______________________________________________________________________________
|        |      |Weight|   |     | Fe  |    |SiO | Al  |    |    |    |    |TiO |
| SAMPLE | TYPE |      | % | Fe% |(2)O |P % |(2)%|(2)O |FeO%|LOI%|Mn% |CaO%|(2)%|
|        |      | (g)  |   |     |(3)% |    |    |(3)% |    |    |    |    |    |
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |GLOBAL|13,985|100|61.28|87.60|0.11|2.14|5.12 |0.87|5.82|0.06|0.01|0.30|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |6,35mm|4,029 |29 |63.33|90.60|0.12|1.67|3.62 |0.76|4.67|0.05|0.02|0.16|
|TTR-0010|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|5,546 |40 |61.61|88.10|0.12|1.79|4.65 |0.7 |5.52|0.04|0.02|0.22|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|4,409 |32 |55.31|79.10|0.10|2.89|7.75 |0.8 |7.56|0.03|0,01|0.49|
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|                                                                               |
|_______________________________________________________________________________|
|        |      |Weight|   |     | Fe  |    |SiO | Al  |    |    |    |    |TiO |
| SAMPLE | TYPE |      | % | Fe% |(2)O |P % |(2)%|(2)O |FeO%|LOI%|Mn% |CaO%|(2)%|
|        |      | (g)  |   |     |(3)% |    |    |(3)% |    |    |    |    |    |
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |GLOBAL|25,825|100|59.76|82.80|0.05|2.25|5.64 |2.34|5.14|0.06|0.02|0.32|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |6,35mm|8,382 |32 |63.00|88.30|0.05|1.74|2.97 |1.57|4.67|0.07|0.03|0.16|
|TTR-0132|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|10,869|42 |60.75|84.90|0.05|2.27|4.72 |1.7 |4.82|0.06|0.03|0.27|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|6,574 |25 |54.62|76.00|0.05|3.41|10.30|1.9 |7.94|0.05|0.04|0.66|
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|                                                                               |
|_______________________________________________________________________________|
|        |      |Weight|   |     | Fe  |    |SiO | Al  |    |    |    |    |TiO |
| SAMPLE | TYPE |      | % | Fe% |(2)O |P % |(2)%|(2)O |FeO%|LOI%|Mn% |CaO%|(2)%|
|        |      | (g)  |   |     |(3)% |    |    |(3)% |    |    |    |    |    |
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |GLOBAL|28,415|100|58.17|81.70|0.07|3.22|6.03 |1.31|6.51|0.07|0.02|0.33|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |6,35mm|11,710|41 |61.58|87.10|0.06|2.35|4.09 |0.84|6.15|0.08|0.03|0.15|
|TTR-0133|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|10,323|36 |59.60|84.00|0.07|2.89|4.94 |1.1 |5.81|0.07|0.04|0.66|
|        |______|______|___|_____|_____|____|____|_____|____|____|____|____|____|
|        |1,00mm|6,382 |22 |53.41|74.70|0.06|3.79|9.88 |1.5 |8.56|0.06|0.03|0.59|
|________|______|______|___|_____|_____|____|____|_____|____|____|____|____|____|

The results above are encouraging, as the combined weight percentage of lump 
and sinter comprise between 69% and 77% of the total sample weight, at grades 
between 59.6% Fe and 63.3% Fe.

Based on these positive results, Talon engaged Australian-based Ausenco (who 
has previously been reviewing other mineralogical and metallurgical test 
results from the Trairão Project) and Gekko Systems (a company specializing 
in the design, development and distribution of mineral processing equipment 
and systems) to undertake further test work and analyses using a flow sheet 
consisting of simple crushing and screening, followed by gravity separation, 
on semi-bulk samples (1200kg).  Mineralogical analyses using Quantitative 
Evaluation of Minerals by Scanning (QEMSCAN) will be performed on both 
concentrate and tailings, and adjustments to the flow sheet may be made as 
results become available during the testing process. In addition to the 
samples from the surficial deposit that are the result of weathering of BIF 
units, samples that are the result of weathering of the magnetite-rich 
mineralization will also be tested in order to determine which material from 
the surficial deposit's previously reported indicated resource of 84 million 
tonnes at an average grade of 47.2% Fe (using a 25% cut-off) and inferred 
resource of 77.4 million tonnes at an average grade of 42% Fe (using a 25% 
cut-off) (over Target Areas 1-6 and 8 at the Trairão Project) will be 
amenable to blending with the material from the same surficial deposit that 
are the result of weathering of BIF units.  These blending options will be 
considered in co-operation with CRU, a global leader in iron ore market 
analysis.

The various work and analyses described above are expected to be completed in 
the second quarter of this year, and will form the basis for a decision to 
commission a Preliminary Economic Assessment on the surficial deposit with the 
objective of producing lump and sinter feed at the Trairão Project.

New Opportunity Update

By way of further update on new opportunities, management has recently seen a 
marked increase in the number and quality of opportunities being presented to 
the Company, both with near term cash generating potential and exploration 
upside potential.  The Company continues to evaluate numerous opportunities 
and will provide a further update as soon as any of these opportunities 
materialize. 

Qualified Person

Mauricio Prado, past Vice President, Resource Modelling of Talon and currently 
a consultant to Talon, is a Qualified Person within the meaning of National 
Instrument 43-101 ("NI 43-101"). Mr. Prado is satisfied that the processes 
used by SGS-Geosol Laboratórios Ltda are standard industry operating 
procedures and methodologies, and he has reviewed, approved and verified the 
technical information disclosed in this news release (other than the mineral 
resource estimates) including sampling, analytical and test data underlying 
the technical information.

The Qualified Person who prepared the mineral resource estimates presented in 
this news release is Mr. Porfírio Cabaleiro Rodriguez (MAIG), who is a mining 
engineer, independent of Talon and an employee of Coffey Consultoria e 
Serviços Ltda., a branch of Coffey International in Brazil ("Coffey"). 
Mr.Rodriguez is responsible for the mineral resource estimates in this news 
release and has reviewed, approved and verified the data disclosed in this 
news release relating to the mineral resource estimates (including sampling, 
analytical and test data underlying the mineral resource estimate).

Please refer to Talon's news release dated March 2, 2012 entitled "Talon 
Metals Announces Substantial Increase to Mineral Resources at the Trairão 
Iron Project, Brazil" for additional information on the mineral resource 
estimates. Coffey compiled a NI 43-101 compliant technical report on the 
Trairão Project entitled "Fourth Independent Technical Report on Mineral 
Resources" dated March 30, 2012, a copy of which is available under Talon's 
SEDAR profile at www.sedar.com. Please refer to this technical report for 
further information on the Trairão Project.

The metallurgical test work discussed in this news release was conducted by 
SGS-Geosol Laboratórios Ltda in Vespasiano and Parauapebas, Brazil.

About Talon

Talon is a TSX-listed company focused on the exploration and development of 
its iron projects in Brazil. The Company has approximately $15.5-million in 
cash and a well-qualified exploration and mine management team with extensive 
experience in project management.

Talon has approximately 92 million common shares outstanding and approximately 
105 million shares on a fully diluted basis.

Forward-Looking Statements

This news release contains certain "forward-looking statements". All 
statements, other than statements of historical fact that address activities, 
events or developments that the Company believes, expects or anticipates will 
or may occur in the future are forward looking statements. These 
forward-looking statements reflect the current expectations or beliefs of the 
Company based on information currently available to the Company. Such 
forward-looking statements include, among other things, announcements by the 
government of Brazil with respect to infrastructure improvements in Pará 
State, statements relating to the Trairão Project with respect to the 
potential for lump and sinter feed material and the potential for further 
positive metallurgical and mineralogical results on the basis of further 
testing (and the timing associated therewith), the commissioning of a 
preliminary economic assessment, the Company's expectations with respect to 
its financial resources, and targets, goals, objectives and plans and the 
timing associated therewith, including actively looking for opportunities that 
could generate additional cash flow for the Company in the near-term. 
Forward-looking statements are subject to significant risks and uncertainties 
and other factors that could cause the actual results to differ materially 
from those discussed in the forward-looking statements, and even if such 
actual results are realized or substantially realized, there can be no 
assurance that they will have the expected consequences to, or effects on the 
Company. Factors that could cause actual results or events to differ 
materially from current expectations include, but are not limited to: failure 
to establish estimated mineral resources, the grade, quality and recovery of 
mineral resources varying from estimates, risks related to the exploration 
stage of the Company's properties, the possibility that future exploration 
results and metallurgical testing will not be consistent with the Company's 
expectations, failure of the government of Brazil to implement announced 
infrastructure improvements, changes in the price of iron ore, changes in 
equity markets, political developments in Brazil, the inability of the Company 
to generate cash flow in the near-term, uncertainties relating to the 
availability and costs of financing needed in the future, changes to 
regulations affecting the Company's activities, delays in obtaining or 
failures to obtain required regulatory approvals, the uncertainties involved 
in interpreting drilling and exploration results and other geological data and 
other factors (including exploration, development and operating risks). Any 
forward-looking statement speaks only as of the date on which it is made and, 
except as may be required by applicable securities laws, the Company disclaims 
any intent or obligation to update any forward-looking statement, whether as a 
result of new information, future events or results or otherwise. Although the 
Company believes that the assumptions inherent in the forward-looking 
statements are reasonable, forward-looking statements are not guarantees of 
future performance and accordingly undue reliance should not be put on such 
statements due to the inherent uncertainty therein.

The mineral resource figures disclosed in this news release are estimates and 
no assurances can be given that the indicated levels of iron will be 
produced.  Such estimates are expressions of judgment based on knowledge, 
mining experience, analysis of drilling results and industry practices. Valid 
estimates made at a given time may significantly change when new information 
becomes available. While the Company believes that the mineral resource 
estimates disclosed in this news release are well established, by their nature 
mineral resource estimates are imprecise and depend, to a certain extent, upon 
statistical inferences which may ultimately prove unreliable. If such 
estimates are inaccurate or are reduced in the future, this could have a 
material adverse impact on the Company.

Mineral resources are not mineral reserves and do not have demonstrated 
economic viability. Inferred mineral resources are estimated on limited 
information not sufficient to verify geological and grade continuity or to 
allow technical and economic parameters to be applied. Inferred mineral 
resources are too speculative geologically to have economic considerations 
applied to them to enable them to be categorized as mineral reserves. There is 
no certainty that mineral resources can be upgraded to mineral reserves 
through continued exploration.

 

For additional information on Talon please visit the Company's website  
at www.talonmetals.com or contact:

Sean Werger President Talon Metals Corp. Tel: (416) 361-9636 x 247 
Email: werger@talonmetals.com

SOURCE: Talon Metals Corp.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2013/25/c7886.html

CO: Talon Metals Corp.
NI: MNG FIELD 

-0- Mar/25/2013 14:10 GMT

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