Note: The value of 1,77$/share (see news release) is excluding the worth of the Curraghinalt Deposit in Northern Ireland, witch is estimated for production in 2004!
Tournigan Gold Corporation: New Study Improves Economics at Kremnica Gold Project VANCOUVER, BRITISH COLUMBIA--Tournigan Gold Corporation
cost of US$189 per ounce. The Net Present Value of the Sturec
an issued and outstanding basis).
Beacon Hill Consultants (1988) Ltd. were engaged to update and
Technical Report (see Tournigan's press release dated Feb. 11,
2004) . This scoping study, like the Technical Report, focused
exclusively on the Sturec Zone. A new optimized pit was produced
Grade, Gold equiv. Feed Mineable Strip
(g/t) Tonnes Ounces Ratio
--------------------------------------------------
Beacon Hill 2004 study 2.055 15,340,000 868,504 1.93
--------------------------------------------------
Improvement (a) +9% +36% +34% -20%
--------------------------------------------------
(a) Compared to 1998 pit design by Western Services Engineering
/T/
The pit was optimized using a 3D Lerch-Grossman routine, using 50
degree pit slopes as before, and metal prices of US$385 per ounce
of gold and US$5.50 per ounce of silver. A production rate of
4,500 tonnes per day was used to balance efficiencies of scale
with a mine life of 10 years (based on current resources defined
at Sturec). The proposed plant facility is situated within the
existing Kremnica Mining Licence, which is wholly-owned by
Tournigan Gold.
Costs were updated and made more precise, especially electrical
power. The result is operating costs of $11 per tonne of ore, or
US$194 per ounce of gold (including silver credit) which compares
to the previous cost estimate in 1998 of US$190 per ounce. The
capital cost is estimated to be US$48.9 million, including
contingencies of 10 to 30%. Capital expenditures can be paid back
in 2.6 years on an after-tax basis and the base case Internal
Rate of Return increases to 26% from 13% in the earlier study.
Beacon Hill utilized the same metal recovery estimates of 92% for
gold and 72% for silver, based on two metallurgical studies
authored by Hazen Research Inc in 1997 and 1998.
Tournigan is extremely pleased with these results, which
represent a substantial enhancement to the Kremnica project since
its purchase in July 2003. This improved economic estimate,
combined with the increase in both grade and the proportion of
"Indicated" resources at Sturec demonstrate even greater value
for Kremnica. Tournigan will continue to add value by
implementing Beacon Hill's recommended work program to further
develop the project, including 5,600 metres of drilling in 2004.
The drill program will not only focus on further upgrading
resources at Sturec, but will also focus on expanding the
historical resources at the Wolf and Vratislav zones on-strike to
the north, and test large-scale exploration targets at Kremnica
South. Any improvements to resources or grade from these three
zones could further improve the economics. Tournigan will also
initiate the recommended additional studies on environmental
permitting, metallurgy, socio-economic and tailings, to run
concurrently. There are also a number of optimizations to
investigate, which could reduce both capital and operating costs.
It should be noted that this conceptual mineable resource used in
the scoping study includes "Inferred" resources that are
currently considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves. The "Inferred" resources have
only been included to determine the potential viability of the
project, on which a decision has been made to initiate further
development work. Generally, an economic evaluation would only be
completed on "Measured" and "Indicated" resources, and there is
no certainty that this preliminary assessment will be realized.
Tournigan Gold is focused on developing two advanced gold
projects in Europe - Curraghinalt in Northern Ireland and
Kremnica in Slovakia. Feasibility drilling at Curraghinalt is
nearing completion with the final feasibility study to be
completed by the fourth quarter of 2004. Kremnica will be the
focus of exploration and development work in 2004, with
feasibility studies expected to be completed during the third
quarter 2005.
TOURNIGAN GOLD CORPORATION
Damien Reynolds, President and Chief Executive Officer
Statements in this press release other than purely historical
information, including statements relating to the Company's
future plans and objectives or expected results, constitute
forward-looking statements. Forward-looking statements are based
on numerous assumptions and are subject to all of the risks and
uncertainties inherent in the Company's business, including risks
inherent in mineral exploration and development. As a result,
actual results may vary materially from those described in the
forward-looking statements.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Tournigan Gold Corporation
Damien Reynolds
President
(604) 683-8320
or
Tournigan Gold Corporation
Garry Stock
Executive VP
(604) 683-8320
(604) 683 8340 (FAX)
info@tournigan.com
www.tournigan.comThe TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
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