International Tournigan(ITG.V)announces major discovery Message Board

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Gold/Mining/Energy : International Tournigan(ITG.V)announces major discovery

ITG 30.23

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Feb 28 4:00 PM EST

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To: Ian Murray who wrote (207)	12/3/1997 12:18:00 PM
From: MWS	Read Replies (2) of 347

Ian, I see someone has posted the full release. I have some more info. I called Tournigan and obtained a few from pages of an executive summary from an engineering report authored by Kappes and Cassidy and Associates regarding the Peru property. There are details on the geology, the drilling that has been done and some cost and revenue estimates for various scenarios. Most of the details are as in the stockwatch release of Dec 2. Additional points include: Over the life of the project the aggregate value of recovered metals exceeds $2.9 Billion. The cashflow stream for 20 years tax and debt service is $1.1 Billion in total or $54 Million/yr. The Net Present Value for this cash flow is $257 Million at a discount rate of 12%. -A paved highway runs next to the project -A river nearby -Other mining projects exist in the area $3.0M needed for feasibility study $70M for production cost of on-ground capital. (The $100M mentioned in the news release was padded by $30 Million.) -There is no overburden. -Thickness of the deposit is approx 60m -The property has already been drilled (in the 60's) -6500 metres of drilling has been completed -channel samples over 5km has been completed -300 tonne bulk sample has already been completed. Sensitivity analysis shows low sensitivity to electricity and other changes in operating costs. Doubling electricity cost or increasing operating costs by 23% has a projected effect of reducing the NPV from $257 to $175 Million. The project is more sensitive (they call it mildly sensitive) to the market price of manganese products. End of synopsys. My comments: The numbers I suggested in post #206 were conservative. I have a couple of pages that suggest that the silver content may be higher than the grades obtained from the previous drilling. It is noted that the previously mined ore (1905-1965), a total of 500K tonnes, had an average silver grade of 750 g/tonne. Of more significance is the the more recent bulk sample by KCA: 3300Kg bulk sample from 68 different locations which has a Mn content consistent with a previous bulk sample but which has an average silver grade of 330 g/tonne. (I used 150 g/tonne yesterday). Also in this engineering report, they consider tax and debt servicing costs and are still left with $54 Million/yr net revenues after these costs. Based on these cash flows, a $257 Million NPV with 30-40 Million shares (at present there are 13M freetrading?) equates to $6.5-$8.5/share for ITC exclusive of Mali.

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