Typical Cross Section
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KURISKOVA URANIUM DEPOSIT
Kuriskova Uranium Deposit - Slovak Republic - 100% interest in licencesThe Kuriskova property consists of 32 square kilometres of mineral licenses situated approximately 10 km northwest of the city of Kosice, a regional industrial centre in East-Central Slovakia. The current uranium resource at Kuriskova, announced in March, 2010 and reviewed, audited and approved by Tetra Tech, Inc. comprises:
28.5 million pounds U3O8 Indicated Resource at an average grade of 0.555% U3O8; and
12.7 million pounds U3O8 Inferred Resource an average grade of 0.185% U3O8 (cut-off of 0.05%U, NI 43-101 compliant).
12.7 million pounds U3O8 Inferred Resource an average grade of 0.185% U3O8 (cut-off of 0.05%U, NI 43-101 compliant).
In June of 2009, Tournigan announced the results of a positive Preliminary Assessment of the Kuriskova deposit prepared by an independent consultant (Pincock Allen and Holt. The study concludes that the Kuriskova project has robust economic potential and could be developed using conventional mining and processing methods (see Preliminary Assessment summary table below).
Current Resource:
On April 26, 2011 Tournigan announced an updated resource estimate for the Kuriskova uranium deposit which increased the amount of uranium contained in the Indicated Resource by 39% and increased the overall size of the deposit. Tetra Tech, Inc., the firm that is conducting the ongoing Prefeasibility Study on Kuriskova, reviewed, audited and approved the updated resource estimate.
Highlights of the updated estimate include:
- About 7.9 million pounds of U3O8 have been added to the Indicated Resource category, increasing the Indicated Resource by 39% to 28.5 million pounds of U3O8;
- Overall the uranium oxide contained in the Kuriskova deposit has increased by 3.1 million pounds of U3O8 and now comprises 28.5 million pounds at 0.555% U3O8 in the Indicated Resource and an additional 12.7 million pounds in Inferred Resource at 0.185% U3O8; and
- Kuriskova remains one of the highest grade known uranium deposits in the world outside of Canada's Athabasca Basin.
| Kuriskova Resource Estimate April 2011 - Cut-off 0.05%U | |||||||
|---|---|---|---|---|---|---|---|
| U % | Tonnes (000) | % U3O8 | U3O8 lbs (000) | Mo% | Tonnes (000) | Mo lbs (000) * | |
| Total Indicated (Main Zone, Hanging wall zone and Zone 45) | 0.471 | 2,328 | 0.555 | 28,487 | .065 | 2,301 | 3,312 |
| Total Inferred (Main Zone, Hanging wall zone and Zone 45) | 0.157 | 3,099 | 0.185 | 12,664 | .033 | 2,996 | 2,185 |
* Mo resource numbers represent molybdenum associated with uranium resource blocks above a 0.05%U cutoff
A complete table of the new resource estimate prepared by Tournigan and reviewed, audited and approved by Tetra Tech, Inc., can be viewed on this link: http://www.tournigan.com/i/pdf/20110426-Appendix-A.pdf.
The updated estimate incorporates the results of 18 diamond drill holes totaling 4,548 metres that were drilled since the last resource estimate previously disclosed in a news release dated March 24, 2010. The updated estimate also reflects enhanced understanding of Kuriskova geology which has allowed more detailed structural modeling than was done in the past. The estimate was prepared by Ravi Sharma, Tournigan's manager of resources and reserves, and reviewed, audited and approved by Tetra Tech, Inc. An independent NI 43-101 compliant Technical Report was filed on the Company's profile on www.sedar.com on June 9, 2011. Mr. John W. Rozelle, P.G., is Tetra Tech, Inc.'s Qualified Person (QP) for this updated report and is an independent Qualified Person as defined by NI 43-101
To download a PDF version of the full Kuriskova June 2011 resource estimate, click here.
Preliminary Assessment, July 2009
In July of 2009, Tournigan announced the results of a Preliminary Assessment on the Slovakian Kuriskova uranium deposit prepared by independent consultant, Pincock, Allen & Holt. (see news release dated July 27, 2009). The results are summarized in the following table:
| Description | Units | Value |
|---|---|---|
| Mine Life | Years | 15 |
| Uranium Production (Average First 5 Years) | 000 lbs U3O8/Year | 2,395 |
| Uranium Production (Average Life of Mine) | 000 lbs U3O8/Year | 1,382 |
| Uranium Recovery | % | 90 |
| Uranium Price | US$/lb U3O8 | 65.00 |
| Initial Capital Investments (1) | US$ millions | 168 |
| Operating Cost - First 5 Years (2) | US$/lb U3O8 | 17 |
| Operating Cost (Average Life of Mine) (2) | US$/lb U3O8 | 32 |
| Estimated Royalty Payment (Average Life of Mine) | US$/lb U3O8 | 3 |
| Net Present Value @ 12% (3) | US$ millions | 135 |
| Payback Period* | Years | 1.6 |
| Internal Rate of Return (3) | % | 35.8 |
| (1) Includes 30% contingency. | ||
| (2) Pre-royalty; includes 5% contingency and molybdenum credit at $12.50/lb Mo. | ||
| (3) Pre-tax. | ||
*After commencement of production
To download a PDF version of the full Kuriskova Preliminary Assessment study (13mb), click here.
Project Upside
Tournigan Energy believes that the Kuriskova property has excellent upside potential for expanding the size and overall grade of the deposit through continuing exploration. Of significance is the zone of high-grade uranium mineralization which remains open to the north and east of the currently-defined Indicated Resource.
In addition to targets immediately adjacent to the defined resource, recently completed ground radiometric and radon gas-in-soil surveys indicate the presence of anomalies extending up to 300 meters northwest and 200 meters southeast of the currently defined resource (see 2009-2010 Exploration Map below). Initial drilling of these anomalies led to the discovery of a new zone of high-grade uranium mineralization. This zone, which is called Zone 45, has an average grade of 0.677% U3O8 and remains open along strike. Further drilling of this zone has the potential to add significant amounts of high-grade uranium mineralization to the resource. In addition, there are other anomalies within the Kuriskova license which lead Tournigan to believe that there is potential to continue increasing the size of the deposit both immediately adjacent to the currently defined Kuriskova resource and in the surrounding exploration licemse.
The Preliminary Assessment projects a nominal mining rate of 750-800 tonnes of mineralized material per day using the underhand cut and fill mining method with paste backfill. As further geotechnical and hydrogeological data for the project area are obtained, it may be possible to modify the mining method and increase the daily production rate and lower mining operating costs. Exploration success may add to the size and overall grade of the deposit which could also contribute to a higher production rate and lower unit mining costs.
Other areas of upside for the project include: (1) reducing the project's preproduction period and possibly construction capital cost, and (2) optimizing the process plant flowsheet and operating costs.
