THE BOURSE WHISPERER: Talga Gold is about to commence its maiden drilling program on the company’s 100 per cent-owned graphite and iron deposits in northern Sweden.
The drilling is due to kick off by the end of June; just weeks after the company acquired the Swedish portfolio of Teck Resources.
Talga’s graphite project locations and infrastructure in north Sweden. Source: Company announcement
That acquisition was completed earlier than expected due to Talga being satisfied to the projects within the portfolio demonstrating mineralised potential and project development upside.
The initial program is to comprise 5,000 metres of diamond drilling across four graphite and one iron ore projects.
The company said it expects drill results will enable it to conduct preliminary economic studies on several deposits.
The objectives of the upcoming drilling program are:
At the Nunasvaara and Raitajärvi graphite projects the company is looking to expand respective current JORC-code compliant Inferred Resources of 3.6 million tonnes at 23 per cent carbon and 0.5 million tonnes at 10.8 per cent carbon, with the intention to, in part, upgraded to the Indicated Resource category.
“Drill samples will supply fresh material for detailed metallurgy and the commencement of economic studies,” Talga Gold said in its ASX announcement.
“It is envisaged that the resource upgrades can be completed in Q4 2012 and scoping studies commenced in Q1 2013.”
The Jalkunen and Pajala graphite projects currently contain JORC code-compliant Exploration Targets with a respective combined total of 10 to 35.2 million tonnes at 3.4 per cent to 30.6 per cent carbon (Jalkunen project) and 1.3 to 2.3 million tonnes at 3.9 per cent to 40.9 per cent carbon (Pajala project).
The company said its objectives include:
– Extending the graphite intercepted in historic drilling;
– Upgrading at least part of these Exploration Targets into JORC-code compliant Inferred Resource category and;
– Providing fresh material for graphite specification and metallurgy testwork.
At the Masugnbysn iron ore project Talga hopes to expand the size of the current JORC-code Inferred Resource of 44.1 million tonnes at 30.9 per cent iron at the Junosuando deposit and at least in part upgrade this to Indicated Resource category.
“The initial drilling focus will be on shallow and higher grade zones identified from the historical database review,” the company said.
“Drillcore will provide material for metallurgical testing, concentrate specification and ore type appraisal by strategic partners and off-take customers.”