some jiggling on the numbers from Peru - but no new start dates or closing of the 2nd half of the PP yet.
Berenguela project update
International Tournigan Corporation ITG
Shares issued 16,553,331 Oct 30 close $0.24
Mon 2 Nov 98 News Release
Mr. Ted Daem reports
The company and Kappes Cassiday & Associates have negotiated an addendum to
the option agreement made Feb. 27, 1998 respecting the acquisition by the
company of a 100 per cent interest in the Berenguela project in Peru. The
addendum provides for an extension to Sept. 1999 of the company's monthly
expenditure commitments under the option agreement, provided that the
company advances $300,000 of the expenditure commitments to Kappes Cassiday
over the upcoming four months. The advances on expenditure commitments will
be applied towards the costs of exploration, development, property
maintenance costs and the feasibility study. It has also been agreed that
payment of the share consideration be extended. The first instalment of
3,500,000 shares will now become due following the February 1999 AGM.
Based on independent arm's length reports, at an after tax constant dollar
discount rate of 10 per cent, the net present value is $182.7-million
(U.S.). The cash flow, after payback of capital and income tax, averages
$1.1-million (U.S.) per week for the 20-year life of the mine.
The Berenguela project is 50km west of Juliaca in southern Peru. The
deposit is a tabular body approximately 500m wide, 1.5km long and 60m
thick. It contains a probable reserve of 14 million tonnes assaying 4 oz/t
silver, 1.32 per cent copper and 18 per cent manganese.
The next phase of development is to complete a bankable feasibility or
pre-production study. The study will be the vehicle used to raise the
project financing. An estimated $2.5-million will be spent to complete the
study for a 700,000 tonne per year operation. The first step, scheduled to
last 90 to 120 days will be to complete pitting at the site resulting in
what the company believes will be substantially higher grades of silver.
Subsequently, lab and pilot plant testing will define process design
parameters and costs. There will be a detailed study of manganese markets
with the objective of establishing marketing contracts for one or more
products. Management will also solidify the organization of supply
contracts for the mine.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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