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Tournigan Gold Corporation ("Tournigan") has received an independent
scoping study for the Kremnica gold deposit in the Slovak Republic
which highlights the following:
- Increase in Mineable Ounces
- Lower Strip Ratio
- Larger Net Present Value
- Rapid Capital Payback
The scoping study projects average annual production of 89,324 ounces
of gold equivalent per year over 10 years at an operating cost of
US$189 per ounce. The Net Present Value of the Sturec deposit at
Kremnica using a 5% discount rate is Can$62 million, after-tax, which
translates to Can$1.77 per Tournigan share (on an issued and
outstanding basis).
The Scoping Study Update
Beacon Hill Consultants (1988) Ltd. were engaged to update and upgrade
a scoping study completed by them in 1998 on Kremnica, utilizing the
re-calculated resource estimate from the NI 43-101 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 which resulted in a conceptual
mineable resource at Sturec as follows:
--------------------------------------------------
Grade, Gold Feed Mineable Strip
equiv. (g/t) Tonnes Ounces Ratio
--------------------------------------------------
Beacon Hill 2004 study 2.055 15,340,000 868,504 1.93
Improvement* +9% +36% +34% -20%
--------------------------------------------------
* Compared to 1998 pit design by Western Services Engineering
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"
Damien Reynolds, President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. 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.
For further information please contact:
Damien Reynolds, President Tel: (604) 683-8320
Garry Stock, Executive VP Tel: (604) 683-8320
www.tournigan.com
==================================================
Copyright (c) 2004 TOURNIGAN GOLD CORPORATION (TSXV-TVC) All rights
reserved. For more information visit our website at
www.tournigan.com/ or send mailto:info@tournigan.com
Message sent on Mon Mar 15, 2004 at 6:27:15 PM Pacific Time
scoping study for the Kremnica gold deposit in the Slovak Republic
which highlights the following:
- Increase in Mineable Ounces
- Lower Strip Ratio
- Larger Net Present Value
- Rapid Capital Payback
The scoping study projects average annual production of 89,324 ounces
of gold equivalent per year over 10 years at an operating cost of
US$189 per ounce. The Net Present Value of the Sturec deposit at
Kremnica using a 5% discount rate is Can$62 million, after-tax, which
translates to Can$1.77 per Tournigan share (on an issued and
outstanding basis).
The Scoping Study Update
Beacon Hill Consultants (1988) Ltd. were engaged to update and upgrade
a scoping study completed by them in 1998 on Kremnica, utilizing the
re-calculated resource estimate from the NI 43-101 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 which resulted in a conceptual
mineable resource at Sturec as follows:
--------------------------------------------------
Grade, Gold Feed Mineable Strip
equiv. (g/t) Tonnes Ounces Ratio
--------------------------------------------------
Beacon Hill 2004 study 2.055 15,340,000 868,504 1.93
Improvement* +9% +36% +34% -20%
--------------------------------------------------
* Compared to 1998 pit design by Western Services Engineering
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"
Damien Reynolds, President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. 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.
For further information please contact:
Damien Reynolds, President Tel: (604) 683-8320
Garry Stock, Executive VP Tel: (604) 683-8320
www.tournigan.com
==================================================
Copyright (c) 2004 TOURNIGAN GOLD CORPORATION (TSXV-TVC) All rights
reserved. For more information visit our website at
www.tournigan.com/ or send mailto:info@tournigan.com
Message sent on Mon Mar 15, 2004 at 6:27:15 PM Pacific Time
