Vancouver – Upcoming resource revisions for a pair of Tournigan Gold‘s (TVC-V, TVCZF-O) mineral projects will see one shrink while the other is expected to grow.
The inferred resource estimate of 9 million tonnes grading 0.255% U3O8 (50.5 million contained lbs. U3O8) tabled earlier this year for the company’s Kuriskova uranium project in eastern Slovakia is anticipated to decrease by 10-30%.
Tournigan engaged an independent review after an audit of the Kuriskova resource estimate indicated modeling issues for the deposit. Additionally, the engineering study will incorporate what the company describes as “an improved geologic understanding” for Kuriskova and also will serve as a prerequisite step towards whether a pre-feasibility study is initiated.
“The revision may disappoint investors in the short run, but it is an important step that will clear the way for a more accurate assessment of the property’s development prospects,” stated Tournigan’s president and CEO James Walchuck in the announcement.
The revised uranium resource will include historical drill data plus drilling from 2005 and 2006. Results from the current program will be incorporated into a resource update scheduled for early 2008.
On a positive note, Tournigan expects to deliver a resource boost for its Curraghinalt gold deposit in Northern Ireland before the end of the year.
It acquired the advanced-stage gold project in early-2003 and reviewed inferred resources of 528,000 tonnes at 15.5 grams gold per tonne (about 262,000 contained oz. gold) in 2005. Curraghinalt has over 17,000 metres of previous drilling undertaken plus about 700 metres of underground development from the 1980s and 90s.
Data from 20 new drill holes is being incorporated into the new resource tally.
The company is also restating financials from September 1, 2004 to May 31, 2007 due to errors in reporting of stock-based compensation (options). The correction is expected to increase reported net losses over the period by about $2.9 million.
Shares of Tournigan closed down 19% on the October 24th news, off 52 at $2.21 apiece. With 121.6-million shares outstanding the company posts a $269-million market capitalization and has a 52-week trading range of $1.65-$4.50.
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