Talon Metals delivers 96% after-tax NPV increase for Tamarack
(Kitco News) - Talon Metals (TSX: TLO) announced Thursday that the updated Preliminary Economic Assessment (PEA) in respect of the Tamarack nickel-copper-cobalt project delivered 96% increase in the after-tax NPV, from US$291 million to US$569 million.
Talon currently has the right to acquire up to a 60% ownership interest in the Tamarack project upon the satisfaction of certain terms and conditions.
The company said that the highlights of the February 2021 PEA include after-tax NPV of US$569 million (after-tax IRR of 31.9%) for nickel sulphate scenario; US$567 million (after-tax IRR of 48.3%) for nickel powder scenario; and
US$520 million (after-tax IRR of 45.6%) for nickel concentrate scenario.
"The 96% increase in the after-tax NPV from US$291 million to US$569 million excludes drilling results announced since September 2020, as these drilling results are either outside of the Tamarack project's resource area and/or assays are still pending. Our focus continues to be a systematic approach of resource expansion," said CEO Henri van Rooyen. "Our end game is producing low cost, Green NickelTM during a predicted period of unprecedented nickel shortages, whether it is to supply the electric vehicle or stainless steel market," added van Rooyen.
Talon is a TSX-listed base metals company in a joint venture with Rio Tinto on the high-grade Tamarack nickel-copper-cobalt project located in Minnesota, USA, which comprises the Tamarack North project and the Tamarack South project. Talon has an earn-in to acquire up to 60% of the Tamarack nickel project.