20 October 2016
ASX:TLG
http://www.talgaresources.com/irm/PDF/1455/KiskamaIOCGProjectDrillingResults
Successful Graphite Exploration Drilling Program Completed
Talga Resources Ltd
ABN 32 138 405 419
1st Floor, 2 Richardson St, West Perth, WA 6005
T: +61 8 9481 6667
F: +61 8 9322 1935
www.talgaresources.com
Corporate Information
ASX Code TLG, TLGOA
Shares on issue 181.9m Options (listed) 44.9m Options (unlisted) 34.7m
Company Directors
Keith Coughlan
Non-Executive Chairman
Mark Thompson
Managing Director
Grant Mooney
Non-Executive Director
Stephen Lowe
http://www.talgaresources.com/irm/PDF/1455/KiskamaIOCGProjectDrillingResults
Page 1
Non-Executive Director
• Graphite intercepted in every hole drilled across three projects in Northern Sweden
• Resource drilling at Nunasvaara North extends mineralisation
• Graphite mineralisation intercepted in maiden drilling of exploration targets at the Jalkunen Project
• First assay results expected by end of October
Talga Resources Ltd (ASX:TLG) ("Talga" or "the Company") is pleased to advise the completion of exploration drilling totalling 20 diamond holes for 1,950 m across three of its graphite projects located in northern Sweden (see Table 1 and Figure 2).
The drilling was designed to:
• Infill and extend a high grade portion of the Nunasvaara resource at the Vittangi project for future permitting and development planning; and
• Follow-up several prospective sites along the large Jalkunen exploration target and the Piteå project for exploration and permit planning.
Vittangi Graphite Project, Nunasvaara
At the Company's Vittangi graphite project ("Vittangi"), a total of 13 exploration diamond drillholes for 1210m were completed at Nunasvaara North, located ~1km to the northeast of the main Nunasvaara graphite deposit which contains part of the current JORC (2012) total mineral resource of 9.8Mt @ 25.3% Cg (ASX:TLG 30th May 2016 and Fig 3 & 4).
Figure 1 High grade graphite from the 'hangingwall graphite unit' intercepted in drillhole NUN16006 at Nunasvaara North, Vittangi graphite project.
Figure 2 Talga's Projects, Sweden. Figure 3 Drill hole locations Nunasvaara North, Vittangi Project.
The drilling at Nunasvaara North was designed to enable a potential upgrade of the size and status of the current inferred resource, in addition to follow-up high grade graphite zones (ASX:TLG 13th November 2014) intercepted in 2014 which included:
• 47m @ 30.8% Cg including 10m @ 40.6% Cg from 1m (NUN14005)
• 46m @ 31.4% Cg including 10m @ 44.9% Cg from 52m (NUN14006) The drilling covered a total strike length of 420m
and all thirteen drillholes intercepted visually high
grade graphite from the main 'hangingwall graphite unit' (Fig 1) on lines 50-100m apart (Fig 3). Four of these holes were extended to test the parallel lower grade 'footwall graphite unit', with graphite intercepted in each hole.
The two sub-vertical graphite units at Nunasvaara North are approximately 35m (true width) apart, separated by a gabbro unit. Visual inspection of the drill core shows the main hangingwall graphite unit has some variability in true width - ranging 10-35m - while the footwall unit is slightly wider.
Metallurgical testing of drill core from this higher grade portion of the Nunasvaara resource is planned to determine any additional beneficial implications in the Company's novel processing technologies.
At the main Nunasvaara deposit, where trial mining is ongoing in the historic quarry area, two geotechnical drillholes for a total of 217m were completed in the footwall of the deposit for ongoing mining studies and pit design work. The deeper of the two holes was extended to 150m downhole to intercept the historically mapped, but previously undrilled 'footwall graphite unit' approximately 15m thick underlying the current Nunasvaara deposit. The assay results of this unit may have additional positive implications for the development of Nunasvaara.
Figure 4 Current Nunasvaara resource and mapped graphite units, Vittangi graphite project.
Jalkunen Graphite Project, Nybrännan and Lautakoski Prospects
At the Company's Nybrännan prospect (part of the Jalkunen graphite project, see Fig 5) located approximately 50km east of Nunasvaara, two maiden exploration drillholes were completed for a total of 226m.
The drillholes at Nybrännan were located approximately 100m south of historic graphite workings where previous Talga rock chip sampling returned 41.3% Cg (ASX:TLG 16th September 2014).
The holes were planned using slingram electro- magnetic ("EM") measurements completed by Talga in 2015 and both holes intercepted ~16m (downhole) of visually high grade graphite. The geological sequence intercepted at Nybrännan was very similar to that found at Nunasvaara (Fig 6). In addition, hole NYB16002 also intercepted (~15m downhole width) a strongly altered and sulphidic gabbro at the end of the h o l e w i t h b a s e m e t a l ( c h a l c o p y r i t e ) mineralisation.
At the Lautakoski prospect, located approximately 35km south east of Nybrännan, a single maiden exploration drillhole was completed to a depth of 101m.
The hole was designed to test a strong EM conductor identified from historic airborne surveys and ground EM surveys completed by Talga in 2015.
LAU16001 intercepted a strongly altered sequence of mainly mafic volcanic sediments including a 8m (downhole width) zone of visibly high grade, variably altered and brecciated graphite (Fig 7), the matrix of which is sulphidic (pyrrhotite-pyrite±chalcopyrite).
Below the graphite unit, the mafic volcanic sediments were strongly altered and variably but pervasively mineralised with disseminated pyrite-pyrrhotite-chalcopyrite throughout the remainder of the hole.
The unexpectedly high levels of sulphides at Lautakoski may be source to the EM anomalies in this part of the Jalkunen project and suggests further potential for base metals in addition to graphite.
Figure 5 Map of Jalkunen project showing main graphite deposits, prospects and EM conductors.
Figure 6 High grade graphite unit intercepted in NYB16001 at Nybrännan prospect, Jalkunen Project.
Figure 7 Matrix-supported hydrothermal breccia with graphite clasts intercepted in LAU16001 (~18.00m) at Lautakoski prospect, Jalkunen Project.
Piteå Graphite Project, Gråliden and Önusträsket Prospects
At the Company's Piteå graphite project (Fig 2), located approximately 30km west of the city of Piteå, single exploration drillholes were completed at each of the Gråliden and Önusträsket graphite prospects.
The Önusträsket hole tested an EM target ~400m north of historic drilling which had recorded >80% of the graphite flake present exceeding 300 microns length. The Gråliden hole was the first drill test of a large EM anomaly located approximately 6km northeast of Önusträsket.
Both drillholes intercepted wide zones of coarse graphite in quartz-biotite-muscovite gneiss. The zones were frequently intruded by pegmatitic granites containing traces of the distinctly blue-coloured mineral apatite, which is a key accessory mineral in the Varuträsk lithium-bearing pegmatite located near the city of Skellefteå to the south.
The Piteå graphite project is rich in logistical advantages; adjacent to sealed roads, 30 minutes trucking to either port or rail access to greater Europe and offering high leverage to any discoveries.
Conclusion and Next Steps
Core processing, logging and sampling is underway and all holes are expected to be in the assay laboratory by the end of October. Base metal prospective intervals will be sampled first and results of these holes are expected over the next fortnight, with all remaining assay results to follow in due course.
The drill results from Nunasvaara North will be used to potentially revise the current JORC (2012) resource estimate with the aim to upgrade it from inferred to indicated status, enabling further exploitation permitting and economic studies to be completed as part of on-going development of this project.
For further information, visit www.talgaresources.com or contact: Mark Thompson Jeremy McManus
Managing Director Commercial Manager
Talga Resources Ltd Talga Resources Ltd
T: + 61 (08) 9481 6667 T: + 61 (08) 9481 6667
About Talga
Talga Resources Ltd ("Talga") (ASX: TLG) is an advanced material minerals company developing graphene and micrographite products for the coatings, energy storage, construction products and composites markets. Talga products have significant potential advantages in performance, value and application owing to unique ore and patent pending process technology.
Talga sources graphite ore from its 100% owned deposits in Sweden, with pilot test processing at the Company's pilot test facility in Germany. Collaborative testing is underway with a range of corporations including industrial conglomerate Tata, UK listed Haydale and German based Jena Batteries.