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Re: News Release - Friday, April 02, 2004
Additional Information on Preliminary Assessment at Kremnica
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Tournigan Gold Corporation ("Tournigan") has been asked by the TSX
Venture Exchange to provide additional information regarding the
updated Kremnica Preliminary Assessment announced on March 16, 2004.
The Company reported projected average annual production of 89,324
ounces of gold equivalent per year over 10 years. This is based on
projected average annual production of 84,093 oz of gold and 512,354 oz
of silver. The conversion to gold equivalent is based on dividing the
projected gross revenue by the gold price used in the assessment of
$385/oz.
Tournigan reported the Sturec Project using the terms "conceptual
mineable resource" and "mineable ounces", which do not comply with
disclosure requirements of NI 43-101. The Company retracts the use of
these terms, although the methodology used in the completion of the
Preliminary Assessment complies with NI 43-101. The Preliminary
Assessment is based on the following mineral resource estimate:
Sturec Project - Conceptual Resource (within proposed pit)
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Class of Cut-off Gold Silver Ounces, Ounces,
Resource Grade Grade, Grade, Tonnes Gold Silver
(g/t) (g/t) (g/t)
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Indicated 0.77 1.86 14.7 6,596,200 393,041 3,059,891
Inferred 0.77 1.86 14.7 8,743,800 521,008 4,056,134
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As reported in the March 16 news release, it should be noted that the
resources used in the assessment 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.
Sturec Project -- Forecast Production
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Tonnes Gold Ounces Silver Ounces Strip Ratio
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15,340,000 840,926 5,123,538 1.93
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Note that this is the tonnage of material that would be sent to the
processing facility proposed for construction alongside the Sturec
Deposit. The "forecast ounces" are adjusted for the amount of material
lost in the process using estimated recoveries of 92% for gold and 72%
for silver and represent the gold and silver that would be shipped for
final refining.
Net Present Value
Tournigan Gold previously translated the conceptual Net Present Value
of US$ 47 million, C$ 62 million for the Sturec project (as currently
proposed) to the current number of issued and outstanding Tournigan
shares, resulting in a NPV of C$ 1.77 per outstanding share. The NPV
was calculated using US$385/oz gold and US$ 5.50/oz silver prices. The
same calculation utilizing the current number of fully-diluted
Tournigan shares is C$ 1.24 per fully-diluted share. Note that in
order to reach the fully-diluted number of shares (50 million),
Tournigan would receive C$ 4.3 million cash in financing proceeds.
There has been no attempt to include the as-yet-unknown number of
shares Tournigan would have to issue in order to fully finance the US$
48.9 million capital cost (C$ 64 million) based on 100% equity
financing of this capital cost.
Qualified Person
Dr. Kent Ausburn, VP of Exploration, remains Tournigan's Qualified
Person in respect of the Kremnica gold project. The Preliminary
Assessment was completed by Beacon Hill Consultants (1988) Ltd, and
authored by the following: W.P. Stokes, PEng, B.M. Briggs PEng, J.W.R.
Fox, PEng, and G. Kirkham, PGeoph.
Corporate Matters
Tournigan Gold will issue 450,000 options exercisable for 5 years at a
strike price of $0.50 to senior executives. This issuance is subject
to approval by the TSX Venture Exchange. A vesting schedule will apply
for 260,000 of these options.
The Company is pleased to announce its new corporate address at Suite
301, 700 West Pender Street, Vancouver, BC, Canada V6C 1G8. Telephone,
fax and email details remain as before.
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. These plans remain subject to the raising of additional
financing.
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
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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 Fri Apr 2, 2004 at 7:13:25 AM Pacific Time
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