International Tournigan Corporation -
Update on the Acquisition of a World-Class Silver Copper Manganese Project
International Tournigan Corporation ITG
Shares issued 16,553,331 1998-07-15 close $0.85
Thursday Jul 16 1998
INTERNATIONAL TOURNIGAN CORPORATION
Suite 1407-700 West Pender Street
Vancouver, British Columbia, Canada, V6C 1G8
Phone: (604) 681-7281 * Fax: (604) 681-8313
Toll Free: 1-800-716-4745
WEB: tournigan.com
E-MAIL: mailto:info@tournigan.com
Update on the Acquisition of a
World-Class Silver Copper Manganese Project
with a 20-Year Mine Life
July 15, 1998 - Mr. Ted Daem, president of ITC, announces that ITC has entered into an agreement to acquire 100% interest in Peru's Berenguela project by issuing up to 8 million shares (and up to 2 million warrants) plus a payment of US$ 770,000 to the vendor (KCA) and committing US$ 140,000 per month for engineering to complete the bankable feasibility.
To date the US $750,000 has been advanced to KCA as a loan. This loan will be converted to a payment. The recently announced financing will allow the company to begin engineering immediately as it covers Tournigan's monthly commitment.
The property was acquired by Kappes, Cassiday & Associates (KCA) in 1995 through the privatization program of Minero Peru. Since 1972 Kappes, Cassiday & Associates (KCA) has provided process metallurgical services to the International Mining Community. KCA specializes in all aspects of heap leach and cyanide processing including laboratory testing, project feasibility studies, engineering design, construction and operations management.
The deposit contains a probable reserve of 14 million tonnes assaying 125 grams silver per tonne, l.3% copper, and 18% manganese. According to independent reports prepared by professional engineers including Ross Glanville & Associates, Charles A. R. Lammle, Mine Development Engineering Ltd. And O'Kane Consultants Inc., the net present value at an after-tax constant-dollar discount rate of 10% is US $ 182.7 million. The cash flow after payback of capital and income tax averages US $1.1 million per week for the 20-year life of the project.
The deposit is a tabular body approximately 500 meters wide, 1.5 km long, and 60 meters thick. There is minimal overburden, therefore the stripping ratio for mining is low. The orebody was mined from 1905 to 1965, and has long been recognized as a major ore deposit. Underground workings total 17km, however, only 3 % of the currently defined ore body has been mined. In the late 1960's, the property was nationalized and has been unavailable for development until now.
The Berenguela project is located 50kms west of Juliaca, on the Altiplano of Southern Peru. The major highway of commerce from Peru to Bolivia runs adjacent to the orebody. Juliaca, a town of 100,000 residents is located 50 km east of Berenguela via a paved highway. A railroad and a river, with sufficient water for operations, parallel the highway and pass within 5 km of the deposit. The deposit is located in an area of rolling hills, with easy road access and suitable sites for a process plant and tailings ponds.
KCA has conducted an intensive program of laboratory testing and project evaluation, and has developed a viable flowsheet. A total of CDN$ 5 million is required for working capital and the next phase of the project, which will culminate in the production of a bankable feasibility study for a 700,000 tonne per year operation with a 20-year life.
International Tournigan trades on the Vancouver Stock Exchange under the symbol ITG.
International Tournigan Corporation
A.E. (Ted) Daem
President & CEO
For further information, please contact Investor Relations
Telephone: (604) 681-7281
Toll-Free: (800) 716-4745
Website: tournigan.com
E-mail: mailto:info@tournigan.com
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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