Tournigan Energy Ltd. (TVC: TSX-V; TGP: Frankfurt) has received a Preliminary Feasibility Study (“PFS”) on its flagship Kuriskova high-grade uranium deposit located in Slovakia from its independent consultant, Tetra Tech, Inc. (Tt), in Golden, Colorado.
Highlights of the PFS for Kuriskova:
- Internal Rate of Return 30.8%; 1.9 year payback; $277 million Net Present Value (NPV) at an 8% discount rate (Pre-Tax, base case US$68/lb U 3O 8, US$15/lb Mo);
- 94% increase of Indicated Resource to 28.5 million pounds of U 3O 8 since Tournigan’s June 2009 Preliminary Economic Assessment (“PEA”);
- 92% uranium recovery in PFS, increased from 90% in the PEA;
- 62% increase in the uranium grade to the process plant to 0.408% U 3O 8 in the PFS from 0.252% U 3O 8 in PEA;
- 26% lower life of mine operating costs in the PFS compared to the PEA. The PFS estimates US$22.98/lb U 3O 8 life of mine operating costs and US$16.68/lb U 3O 8 during the first 4 years of production. These are net of a molybdenum credit of about US$1.27 per pound of U 3O 8;
- 1.5 year decrease of preproduction construction period in PFS to 3 years compared to 4.5 years in the PEA;
- The project can be developed as an underground mine/processing facility with a very small surface footprint;
- Kuriskova would utilize Best Available Technologies in the mining and processing operations. The uranium can be extracted using conventional alkaline (non-acid) processing; and
- There are multiple exploration targets within the Kuriskova License area, with the potential to expand the resource base and extend project life.
“We are very pleased with these results. They demonstrate that the Kuriskova project has the potential to be among the lowest cost uranium producers in the world. The PFS not only illustrates the robust economics of the Kuriskova project but also the competitive advantages it has over other uranium projects as a result of its high-grade resource and relatively low operating cost estimates.” said Dorian L. (Dusty) Nicol, Tournigan’s president and chief executive officer.