Tournigan steps closer to pot of gold (July 23, 2004)

Vancouver – With its legal issues resolved, Tournigan Gold (TVC-V) has commissioned AMEC to conduct a prefeasibility study on its Curraghinalt gold project in northern Ireland. The project has already received two positive scoping studies that said a mine would be viable based on a historical resource containing some quarter million ounces of gold. The move brings the company, which also has the Kremnica gold property in the Slovak Republic, a step toward becoming a European gold producer.

AMEC’s prefeasibility study is looking at a mine design to accommodate a 50,000 ounce per year operation. The study which should be completed by October, will include a resource estimate done in compliance with NI-43-101, based on results from over 173 holes 17,000 metres drilled in 173 holes. AMEC’s initial site visit included engineers from environmental, geological, infrastruture, mining and waste management divisions.

An infill drilling program of over 3,000 metres in 23 holes that included a few step out holes, was conducted on the Curraghinalt property over the last year with encouraging results.The drilling is intended to bring the historic resource of 468,000 tonnes grading 16.97 grams gold per tonne containing 255,000 oz. gold at a cutoff of 6 grams gold and a minimum mining width of 1.25 metres to comply with the measured and indicated category outlined in NI 43-101. This resource is based on results from 150 drill holes (14,000 metres).

The recent drilling and prospecting is showing that there is a good deal of potential to expand the resource as well. The company reported intersecting high grade gold mineralization during its latest drill campaign in May and in March. A new extension was found and another vein was traced past a shear zone. Propsecting also highlighted high grade veins about 350 metres away from the current resource.

Last week the last of the infill drilling results included bonanza intercepts like 4.32 metres grading 34.5 grams gold in CT-22, which contained 2.82 metres of 52.8 grams gold per tonne from a downhole depth of 30.5 metres.

The company and its partner were embroiled in a nasty legal dispute over another Irish gold property earlier this year. The companies had signed a binding letter agreement in 2002 that set out how Tournigan could earn up to a 75% interest in the Omagh property in Tyrone County, followed by a JV. Although Tournigan presented a formalized option agreement to European Gold Resources’, now Galantas Gold (GAL-V), Galantas would not sign it.

They managed to resolve their battle in March when Tournigan agreed to release any interest in the Omagh gold property in return for Galantas releasing its claim for damages against Tournigan.