Msalloo22 Jun 2010 11:23
KREMNICA GOLD PROJECT
Tournigan Signs Option Agreement on Kremnica Gold Property
On January 28, 2010, Tournigan Energy executed a share purchase agreement with Ortac Resources plc of London for Ortac acquire all of the shares of Kremnica Gold s.r.o and Kremnica Gold Mining s.r.o. the holder of the Kremnica gold deposit located in Slovakia. This new agreement supersedes a previous June 7, 2009 option agreement. On closing of the amendment agreement, Ortac will purchase and take possession of 100% of the Kremnica Shares for consideration of US$2 million to be paid in a combination of US$100,000 cash and a US$1,900,000 non-interest bearing promissory note that will be due for settlement upon Ortac completing a Public Listing (IPO) during 2010. Upon future production, Ortac will pay Tournigan US$3,750,000 in cash or in Ortac shares and a 2% net smelter return (NSR) royalty on gold and silver production. Ortac may buy back half the NSR granted to Tournigan by paying Tournigan US$ 1 million cash. For details, click here for the January 28, 2010 news release.
Kremnica Gold Project - Slovak Republic
The Kremnica gold project is located in central Slovakia beside the historic mining town Kremnica, which lies 185 km northeast from Bratislava, the nation's capital. The property has easy access to electricity, natural gas, rail and paved-road infrastructure. Historical production of 1.5 million ounces of gold on the property dates back to the 14th century.
The Kremnica resource is within a deposit known as "Šturec" which, in modern times, was an open pit mine from 1987 to 1992. The mine was abandoned as unprofitable in 1992, a time when the price of gold was trading in the range of US$330 per ounce to $360 per ounce. Tournigan acquired the mine and surrounding exploration licenses spanning 123 km² in 2003 and has since conducted a detailed exploration program on the property in addition to a pre-feasibility study completed in May 2007 (see below).
Tournigan continued in 2008 to infill drill the deposit and gather geotechnical information about the property. The geotechnical drilling was in support of a groundwater monitoring program, a detailed open pit design and the siting of the tailings facility and the processing plant. The company has also commenced base line data gathering for environmental purposes.
The complete technical report in support of the prefeasibility study completed by Beacon Hill Consultants (1988) Ltd. of Vancouver is available from this link: 43-101 Kremnica Technical Report (PDF, 10 mb). The study's mineral resource estimate is as follows:
Kremnica, Sturec Deposit - Measured, Indicated & Inferred Resource
(Beacon Hill Consultants, May 2007)
Category
Tonnes
Au / Ag
Ounces Au
Ounces Ag
Measured
8.2 million
1.61 Au / 13.3 Ag
425,000
3.5 million
Indicated
15.4 million
1.24 Au / 10.3 Ag
615,000
5.1 million
Inferred
10.6 million
1.01 Au / 6