Kremnica Gold Project

Kremnica Gold Project - Slovak Republic - 100% interest in licenses

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.

Following a pre-feasibility study completed in May 2007, 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 / 6.27 Ag	345,000	2.1 million

(0.50 g/t cutoff)

The study's base case indicates that the project could recover 674,500 ounces of gold with an internal after tax rate of return (IRR) of approximately 13%, assuming a gold price of US$525 per ounce and a silver price of US$9.25 per ounce. The prefeasiblity study also indicated an IRR of 26% assuming a gold price of US$675 per ounce. The current spot price of gold is available at this link: www.kitco.com/charts/livegold.html. Tournigan is progressing with its efforts to optimize the project's economics.

Kremnica Gold Project prefeasiblity study summary (Beacon Hill, May 2007)

Gold Recovered (life of mine)	674,500 ounces
Silver Recovered (life of mine)	3,739,000 ounces
Gold Price Used	US$525/oz
Silver Price Used	US$9.25/oz

Capital Cost (millions)	US$106.2
Ongoing Capital and Reclamation (millions)	US$24.2
Operating Cost per Gold Equivalent Ounce	US$227.00

Production Rate (tonnes milled per day)	6,000
Strip Ratio (Ore to Waste)	1.61
Metallurgical Recovery (Gold)	93.0%
Metallurgical Recovery (Silver)	66.0%

Mine Life	7.7 years
Approximate Payback Period	4.4 years

Gold Price
(US$ per ounce) Cashflow (After Tax)
(US$ millions) IRR

$375 ($12,617) -2.55%

$425 $17,198 3.29%

$475 $46,802 8.53%

$525 (Base Case) $75,028 13.08%

$575 $101,895 17.07%

$625 $128,762 20.79%

$675 $169,063 26.00%

Kremnica - Ultimate pit with haul road intersected by vein (purple) with slope sectors in blue

History

The Kremnica resource is within a deposit known as "Šturec" which 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 the pre-feasiblity study.

This page was updated on May 30, 2008

Mike Mracek, P.Eng., Tournigan's Chief Operating Officer and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this web page.