TALON METALS ANNOUNCES RESULTS FROM A DETAILED DRILLING PROGRAM ON TARGET AREA 1 AT THE TRAIRÃO IRON PROJECT, BRAZIL

May 11, 2011

Road Town, Tortola, British Virgin Islands (May 11, 2011) – Talon Metals Corp. (“Talon” or the “Company”) (TSX: TLO) is pleased to announce the results from the detailed drilling of 13 holes in a geostatistical “cross” on Target Area 1 at its 100% owned Trairão Iron Project, located in Pará State, Brazil.

These 13 reverse circulation (“RC”) holes were drilled in a cross configuration, with three holes on each of the four arms of the cross, drilled between 25 and 50 metres apart (see Figure 1) in the vicinity of drill hole TRC-0010 of the original RC drill program. The primary aim of this detailed drilling program is to determine the rate of geostatistical variance in the grade of the hematite mineralization in the surficial deposits and the saprolite and saprock zones. The analysis of these data will influence the drill layout program, which in turn will aim to delineate indicated and measured mineral resources.

While the geostatistical analysis of the drill data continues, the drilling also served to provide drilling information below 50 metres depth, which was the depth limit of the initial RC drilling program in this area. That initial drilling program of 23 RC holes, drilled on a 400 metre x 200 metre spacing over 2,400 metres of strike to 50 metres depth, delineated a NI 43-101 compliant inferred mineral resource estimate for Target Area 1 of approximately 238 million tonnes at a grade of approximately 39% Fe (using a 25% Fe cut-off).

In these 13 holes within the geostatistical cross, drilling extended beyond 50 metre depth to the maximum depth of drilling capability or until the hole had drilled through the visible mineralized zone. All 13 holes intersected iron mineralization and nine of them intersected iron mineralization over widths of between 72 and 100 metres, all with grades in excess of 30% Fe, with the best wide intersection being in drill hole TRC-0085 which intersected 80 metres of mineralization at a grade of 39.61 % Fe. In nine of the holes, the mineralization remains open at depth, as drilling was terminated at the maximum capacity of the drill rig, at drilling depths of between 75 and 100 metres and will require further deeper drilling in the next phase of drilling. The drilling also confirmed a higher grade enriched zone at surface with grades, in ten of the 13 holes, of between 41% Fe and 52% Fe over drilling intervals of between 12 and 36 metres.

“We are very encouraged by these results, for although we await the results of the geostatistical analysis being undertaken by our consultants, Coffey Mining, the results indicate that the iron mineralization commonly extends in the saprolite and saprock zones to depths of 70 to 100 metres, which is considerably deeper than originally we had anticipated and also deeper than the 50 metre limit of drilling, on which the inferred resource was calculated in this area,” said Mr. Stuart Comline, President and CEO of Talon. “It is also encouraging that the near surface, high grade mineralized zone surface has been confirmed by this close spaced drilling program.”

The results of the 13 holes are as follows:

Table 1-13 Drill Hole Intersections within the Geostatistical Cross on Target Area 1

Hole ID E.O.H.*
(m)
From (m) To (m) Interval**
(m)
Grade***
(% Fe)
TRC-0083 85.00 0.00 85.00 85.00# 32.79
(including) 0.00 36.00 36.00 40.80
TRC-0084 81.00 0.00 24.00 24.00 42.70
(including) 0.00 12.00 12.00 52.03
TRC-0085 80.00 0.00 80.00 80.00# 39.61
(including) 0.00 17.00 17.00 46.48
TRC-0086 80.00 0.00 80.00 80.00# 36.03
(including) 0.00 34.00 34.00 41.35
TRC-0087 80.00 0.00 80.00 80.00# 36.33
(including) 0.00 28.00 28.00 46.48
TRC-0088 75.00 0.00 75.00 75.00# 38.76
(including) 0.00 23.00 23.00 48.83
TRC-0089 76.00 0.00 76.00 76.00# 36.69
(including) 0.00 34.00 34.00 42.99
TRC-0090 80.00 0.00 80.00 80.00# 34.25
(including) 0.00 32.00 32.00 45.10
TRC-0091 80.00 0.00 80.00 80.00# 37.16
(including) 0.00 28.00 28.00 47.48
TRC-0092 100.00 0.00 64.00 64.00 28.49
(including) 0.00 16.00 16.00 37.81
TRC-0093 100.00 0.00 100.00 100.00# 27.34
(including) 0.00 25.00 25.00 38.88
TRC-0094 100.00 0.00 72.00 72.00 31.05
(including) 0.00 13.00 13.00 48.46
TRC-0095 100.00 0.00 17.00 17.00 44.56

Notes:
(*) E.O.H. means “End of the hole”
(**) intervals do not represent the true widths
(***) Fe grade are uncut
(#) Mineralization open at depth

The prefix TRC on the Hole_ID column indicates RC drill holes. All RC drill holes were drilled vertically.

Drilling continues with two RC rigs which are now focusing on drilling Target Areas 4, 5 and 6, as the preliminary RC drilling program on the entire cumulative strike of 21 kilometres on Target Areas 1, 2 and 3 has been completed and assay results are awaited. The three diamond drill rigs are undertaking infill drilling on Target Area 1. Geological mapping and detailed magnetic surveys also continues on the remaining Target Areas 7 to 13 which have an estimated cumulative strike of approximately 30 kilometres.

Quality Assurance, Quality Control and Qualified Person
All drilling samples have been prepared and analyzed by SGS-Geosol Laboratórios Ltda (“SGS”) which is ISO14001:2004 and ISO 9001:2008 accredited and is independent of Talon. Sample preparation was conducted at SGS Parauapebas preparation facility whereas analyses were performed at the SGS laboratory based in Belo Horizonte, Brazil. The samples were analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, CaO, Fe2O3, K2O, MgO, TiO2, P, Mn and Cr2O3 and retained moisture (LOI) by multi-temperature.

QA/QC procedures include the submission by Talon of systematic duplicates, blanks and standard samples within every sample batch submitted to SGS. In addition, SGS inserts its own standards, blanks and duplicate samples. The results from these control samples indicate acceptable consistency of analysis.

Talon’s exploration programs are being managed by Talon’s VP Exploration, Mr. Paulo Ilidio de Brito (Member: AusIMM), who is qualified person within the meaning of National Instrument 43-101. Mr. Ilidio de Brito, who is an employee of Talon, is responsible for the technical material in this news release and has verified the data disclosed in this news release (including sampling, analytical and test data underlying the information), other than with respect to the inferred mineral resource estimate mentioned above.

The qualified person (within the meaning of National Instrument 43-101) who prepared the inferred mineral resource estimates mentioned in this news release is Mr. Bernardo Horta de Cerqueira Viana, who is a geologist independent of Talon and an employee of Coffey Mining Ltd. ("Coffey"). Mr. Viana is a member of the Australian Institute of Geoscientists (“AIG”). Coffey compiled a National Instrument 43-101 compliant technical report on Target Areas 1 and 2 of the Trairão Iron Project entitled “Second Independent Technical Report on Mineral Resources” dated March 29, 2011.
 

About the Trairão Project
Talon’s 100% owned Trairão Iron Project is situated within the Serra da Seringa Archean age greenstone belt, within the Carajás Mineral Province in Brazil, which also hosts numerous other iron ore deposits. The Trairão Project comprises eight exploration licences and four applications for exploration licences, for a total area of 77,390 hectares (191,234 acres). The primary protore iron mineralization in the project area is magnetite-rich BIFs. The BIFs are associated with positive magnetic anomalies and are preserved in nine discreet areas with a cumulative strike length of some 50 kilometres, which mostly form prominent ridges, locally capped by extensive preserved supergene enriched hematite deposits, which are developed in surficial and saprolite zones.

Figure 1: Geology and Drilling Layout – Target Area 1 Trairão Iron Project, Brazil

 

About Talon
Talon is a TSX-listed company focused on the exploration and development of the Trairão Iron Project in Pará State, Brazil. The Company has a well-qualified exploration and management team with extensive experience in exploration and project management.

Talon has a treasury of approximately CDN$34 million and has 91,547,037 common shares outstanding and 105,546,189 shares on a fully diluted basis.

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

Erica Belling
VP Investor Relations
Tau Capital Corp.
Tel: (416) 361-9636 x 243
Email: ebelling@taucapital.com

 

Forward-Looking Information


This news release contains forward-looking information. 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 (including, without limitation, statements regarding potential mineralization, the depth of the mineralization and the Company’s exploration plans and objectives) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, 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, among other things, risks related to the exploration stage of the Company’s properties, the possibility that future exploration results will not be consistent with the Company’s expectations (including identifying additional and/or deeper mineralization), changes in the price of iron ore, changes in equity markets, political developments in Brazil, 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 exploration results and other geological data and the other risks involved in the mineral exploration business. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, 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 information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

The mineral resource figure disclosed in this news release is an estimate and no assurances can be given that the indicated levels of iron will be produced. Such estimate is an expression 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 estimate disclosed in this news release is 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 estimate is inaccurate or 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.