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Gold/Mining/Energy : International Tournigan(ITG.V)announces major discovery -- Ignore unavailable to you. Want to Upgrade?

To: rdww who wrote (204)	12/2/1997 12:31:00 PM
From: MWS	Respond to of 347

So, In the last two weeks we have 1.3M shares traded, 730K of which are crossed through Union. There is a loan for 1M$ Canadian to secure rights to a property (obviously this is not someone's backyard), and financings totalling 3.25M$ now (assuming the brokered placement, also through Union, gets filled), 3.7M$ in the door on the exercise of warrants. For a dilution of some 6.9M shares (including the warrants and 400K agents warrants). This money is said to be for "development costs" for Berenguela. This sounds like more than your typical exploration property. Does anyone know who Kappes, Cassiday and Associates of Reno, Nevada are? Any other projects they have been involved with? The stock price is inching up on low volume.

To: rdww who wrote (204)	12/2/1997 2:42:00 PM
From: MWS	Read Replies (1) \| Respond to of 347

I should have waited another hour. Now the news is out: see Stockwatch for full release ... > According to a technical summary prepared for > SOMIBESA by Francis O'Kelly, a chartered engineer of > MCS Mineral Consulting Services Ltd, the Berenguela > deposit contains a drill proven reserve of nearly 14 million > tonnes assaying 131-220 grams silver per ton, 1,3% copper > and 18% manganese. 14 Million tonnes with Ag: Call it $5/oz, use a grade at the lower end 150 g/tonne = $25/tonne of deposit Cu: At $1800/tonne at 1.3% = $23/tonne of deposit Mn: Is listed at $1180/tonne, but I will use $100/tonne because the market is not as liquid as for other minerals, at 18% = $18/tonne of deposit. Total is conservatively $66/tonne. For 14M tonnes = $924M for the proven deposit. The 14M tonnes is "proven" according to the consulting services report and based on 124 drills: >The deposit is a tabular body approximately 500 meters >wide, 1.5 kilometers long and 60 meters thick, There is no >overburden and stripping ratio for mining is minimal. The >orebody was mined from 1905 to 1965. Underground >workings total 17 km. Two major mining companies, >Asarco and Chartered Consolidated, drilled the property in >the 1960's and completed feasibility studies. Because of >political and technical considerations the project was not >developed at that time. The property was nationalized in the >late 1960s and was unavailable until the Peruvian >government initiated its privatization program. >According to the MSC mineral consulting services >technical summary, the Berenguela ore reserves may be >considered in the proven category as a result of over 50 >years of active mining, followed by extensive exploration >drilling by Asarco and Charter including 124 diamond drill >holes totaling 6,628 metres. >The design includes manganese recovery as an inherent step >in the process, Once manganese recovery is included, >revenues increase to the point where manganese becomes >the most important economic constituent. The $100/tonne used above is probably far too conservative if Mn value is to be greater than that of Cu and Ag combined. >KCA has advised the company that the estimated cost to >bring the project to the stage where a bankable feasibility >study for a 700,000 tonne per year operation with a twenty >year mine life is $3,000,000. The capital cost to put the >project into production is estimated to be >US$100,000,000. >It is the intention of SOMIBESA, KCA and the company to >enter into an agreement whereby the company will acquire a >100% interest in the Berenguela project. In consideration >for the property, the company has agreed to fund the project >to the completion of feasibility and issue the principals of >SOMIBESA a significant equity position in the company. >The number of shares to be issued will be based, to a great >extent, on the project's value. They will have the $3.0M from the most recent placement (assuming it gets placed) and the $100M will likely be a mix of equity and debt. The float could grow by another 50-100% depending on the price and debt/equity ratio. At 700Ktonne/yr and for the conservative value of $66/tonne, this implies revenues of $46M/yr. For a worst case scenerio of 40M shares this implies revenues of over 1$/share.