TLO Talon Metals Corp

TSX:TLO

ROAD TOWN, Tortola, British Virgin Islands, April 11, 2012 /PRNewswire/ - Talon Metals Corp. ("Talon" or the "Company") (TSX: TLO) is pleased to announce positive results from the drilling at its 100% owned Inajá South Iron Project ("Inajá South") in Pará State, Brazil. Inajá South is located approximately 140 kilometres south of Talon's Trairão Iron Project.

During the fourth quarter of 2011, Talon conducted a reverse circulation ("RC") drilling program at Inajá South, with the principal aim to evaluate the iron potential of the magnetite-rich banded iron formations ("BIFs") in the Serra do Inajá greenstone belt. The program comprised 29 RC drill holes (1,910 linear metres). The drill holes were drilled at an inclination of -60 degrees into the BIF units, which have steep near vertical dips. The holes were drilled between 30 metres and 80 metres apart on eight section lines which were spaced between 900 metres and 1,300 metres apart, covering a total strike length of the BIF units of approximately 7,750 metres. The drilling depth of the holes varied between 21 metres and 152 metres.

The complete table of drilling results is appended to this news release (Table 1). Highlighted intersections include:

"The drilling and metallurgical test results of this first phase exploration program indicate that the iron mineralization could be amenable to producing a high quality pellet feed product at Inajá South using simple, cost effective flotation that shows a good level of recoveries," said Mr. Henri van Rooyen, CEO of Talon. "While Talon's focus is its Trairão iron project, the quality of the mineralization and location of Inajá South lends itself to establishing a joint venture with parties in the area".

Prior to the RC drilling program, Talon conducted geological mapping, supported by the interpretation of remote photogeological imagery and a previously flown regional airborne geophysical survey. The mapping phase was followed by rock sampling and the excavation of three trenches (1,016 linear metres). The data obtained from this work and the drilling data indicate that the there are up to three BIF units, of which the central unit is the widest and most attractive target with an approximate true thickness varying between 33 metres and 112 metres. The BIF units are developed within a succession of metamorphosed acid and mafic to ultramafic volcanic rocks. The BIF units have a total length of nine kilometres striking northeast-southwest, with steep near-vertical dips. The BIFs are the causative source of one of the more prominent aeromagnetic anomalies within the Serra do Inajá greenstone belt, which is a relatively new target area for iron exploration. The intersections on the drilling sections confirm that the mineralization includes hematite in the poorly developed weathered environment which extends to depths of between 2 and 21 metres. Underlying the weathered rock, unaltered magnetite bearing fresh BIF is developed. The metallurgical testwork reported below indicates that this iron mineralization could be amenable to the production of pellet feed material.

The RC drilling results indicate that the iron mineralization in the BIF is open at depth in all of the eight geological sections drilled and is also open laterally to the extremities of the nine kilometres of strike, within Talon's licence area.

The rights to the surrounding greenstone belt areas, with further BIFs, are held by VALE S.A.

Inajá South Initial Metallurgical Results

Talon also announces today its preliminary metallurgical results at Inajá South on two samples IN-01 and IN-02. The mineralogical and metallurgical test work was conducted at Processamento e Caracterização Mineral Ltda ("PCM") under the direction of Ricardo Álvares de Campos Cordeiro of Talon, and Mr. Ronaldo Horta, independent consultant. PCM is independent of Talon and services the iron ore industry in Brazil. The aim of the preliminary metallurgical test work has been to establish processes that could be applied to the production of a high grade iron concentrate amenable for the pellet feed market.

The semi-quantitative petrographic analysis indicated that sample IN-01 was collected on Trench 1, close to the surface (approx. 1.5m depth) and consists of magnetite (40.5%), quartz (37.7%), hematite (14.9%), goethite (6.5%), with smaller proportions of phyllosilicates (0.4%). The sample IN-02 was collected on Trench 2 (also approx. 1.5m depth) and consists of quartz (45.4%), magnetite (27.6%), hematite (20.5%), goethite (6.3%), with smaller proportions of phyllosilicates (0.2%).

The initial metallurgical test work undertaken is based on a flotation process, after desliming in cyclones, in which various grinding procedures were applied over a range of particle sizes. The results of the testwork undertaken on samples IN-01 and IN-02 are shown in the tables below.

Summary - Flotation IN-01