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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 (288)	7/15/1998 10:00:00 PM
From: Mr Metals	Read Replies (1) \| Respond to of 347

EXCELLENT NEWS FOLKS:-) International Tournigan Corporation - Berenguela, Peru property to be acquired International Tournigan Corporation ITG Shares issued 16,553,331 1998-07-14 close $0.83 Wednesday Jul 15 1998 Mr. Ted Daem reports ITC has entered into an agreement to acquire 100 per cent interest in Peru's Berenguela project by issuing up to 8 million shares (and up to 2 million warrants) plus a payment of $770,000 (U.S.) to the vendor Kappes, Cassiday & Associates, and committing $140,000 (U.S.) per month for engineering to complete the bankable feasibility. To date $750,000 (U.S.) 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 deposit contains a probable reserve of 14 million tonnes assaying 125 grams silver per tonne, 1.3 per cent copper, and 18 per cent manganese. According to independent reports, the net present value at an after-tax constant-dollar discount rate of 10 per cent 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 project. The deposit is a tabular body approximately 500m wide, 1.5km long, and 60m 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 per cent of the currently defined orebody has been mined. In the late 1960s, the property was nationalized and has been unavailable for development until now. The Berenguela project is 50km west of Juliaca, on the Altiplano of southern Peru. The major highway of commerce from Peru to Bolivia runs adjacent to the orebody. A railroad and a river, with sufficient water for operations, parallel the highway and pass within 5km of the deposit. The deposit is 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 $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. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com MM