KEY POINTS
- Talon Metals finds copper and nickel near Eagle.
- Initial drilling shows nearly 100 meters mineralized.
- The U.S. Department of Defense supports exploration funding.
Talon Metals (TSX: TLO) has announced a significant new copper and nickel discovery in Michigan’s Upper Peninsula, close to Lundin Mining’s (TSX: LUN) Eagle Mine, the only operating nickel mine in the United States. Following the news, Talon’s shares surged nearly 17%.
New copper, nickel deposit near Eagle Mine
The company reported nearly 100 meters of copper and nickel mineralization from its initial drill hole at the Boulderdash target, starting at a depth of 9.1 meters with a copper equivalent grade of 1.6%. Plans are underway to drill additional holes for further evaluation.
“The distribution and abundance of magmatic sulfides intersected in the initial drilling at Boulderdash bear a striking resemblance to the early drill results from the Eagle deposit,” said Dean Rossell, Talon’s chief exploration geologist, in a statement. Rossell, credited with the discovery of Eagle, recalled that in 2001, early drilling yielded “a long interval of disseminated sulfides with minor net-textured sulfides.” This inspired further drilling in 2002, leading to the discovery of an 84.2-meter interval of high-grade massive sulfide mineralization.
Discovery boosts hopes for U.S. mineral independence
Talon CEO Henri van Rooyen highlighted the strategic importance of the find. “U.S. leaders are focused on reducing dependency on critical minerals produced by foreign entities. The discovery of a potential domestic source for copper and nickel is timely,” van Rooyen said.
Talon’s exploration projects in Michigan and Minnesota are supported by the U.S. Department of Defense, which allocated $20.6 million in 2023 to accelerate mineral exploration in both states.
According to mining.com, Cantor Fitzgerald mining analyst Matthew O’Keefe described Talon’s initial drill results as “impressive” and suggested they could indicate a larger mineral system similar to Eagle, in a note to clients.
The Boulderdash drilling is part of a larger exploration effort under an option and earn-in agreement with UPX Minerals, allowing Talon to acquire up to 80% of the mineral rights over a 1,620-square-kilometer area in Michigan’s Upper Peninsula.
By 11 a.m. EDT, Talon Metals’ shares had risen 11%, with a market capitalization of C$93.5 million ($67.5 million).
