Talon Metals Corporation has provided an update on the Sergipe Potash Project in Brazil, which was purchased by the BVI company in May 2009 through the acquisition of the full interest in its Brazilian subsidiary Bancor Mineracao Ltd. Since July 2009, when Talon Metals provided the project update, it has extended its landholding position and identified a large drilling and geophysical data base for it. Upon the extension, the area of the Sergipe Potash Project now comprises ten onshore and two offshore prospects, in which the BVI company holds exploration licenses for 57,501 hectares.
This is a 172% increase over company’s original land position reported in July 2009, which also includes 14 exploration licenses which have been granted last week. Also, Talon Metals has submitted applications for further exploration licences over an area of 23,066 hectares and is conducting negotiations on the acquisition of interest in additional areas within the Sergipe Basin.
Phase I of project’s exploration program includes an initial compilation of drilling and geophysical data in order to identify and model main targets within the Sergipe basin. After more drilling and seismic data were identified and acquired, the number of oil wells now available to Talon within the basin has increased significantly from 86 to 262. The company announced that the processing and interpretation of the extended data base has prolonged the terms of Phase I and delayed the commencement of the proposed drilling program until February 2010.
By words of Mr. Stuart Comline, President and CEO of Talon, company’s current landholding represents approximately 12% of the onshore portion of Sergipe basin, which is currently the only potash producing region in Brazil. The new licenses increase the area held by the BVI company, and the expanded data base will enhance its exploration program.