Tournigan Gold Corp

Tournigan Gold Corp. (TSX:TVC) & (FSE:TGP)

Share price: CAD 3.10 (april 12, 2007)
Number of shares: 112 million
Market cap: CAD 347.2 million
Resources: 28.6 Mlbs (NI 43-101 Inferred and historical)
Price per pund U3O8: USD 10.4
Estimated production start: Late 2009
Estimated production output in 2010: 1.5 Mlbs (at 100,000 ton per annum 0.66 % U3O8)
Estimated revenue 2010 (U3O8 = $95) : USD 142.5 M.
Estimated production costs per lb: $ 9.15
Estimated profit 2010: CAD 150 M (USD 128.8 M)
Price target 2010 at p/e 10: CAD 10 (150 M shares)
Price target at U3O8 in ground (10 USD per pound): CAD 2.98
12 month price target: CAD 5 (upside 61 %)

My analysis

The company’s resource and production estimate will be higher when all their properties have been explored and all their projects come online. Another upside is the gold projects, where they are planning to produce 100,000 a year. This with costs of USD 250 per oz. With gold prices at around USD 650 this will probably generate around CAD 50 million, which can lift the 2010 target price to CAD 13.3.

Tournigan Gold’s project presentation:

Vision: To increase shareholder value through exploration and to develop advanced projects into producing mines.

Nearing Development: Tournigan has a strong presence in Europe with its Kremnica gold and Jahodna uranium/molybdenum projects in Slovakia and its Curraghinalt gold project in Northern Ireland.

Exploration Assets: Tournigan's asset mix also includes a pipeline of earlier-stage uranium projects in Slovakia, Wyoming, South Dakota and Arizona as well as VMS projects in Slovakia and Northern Ireland, and gold in Nevada.

BRIEF PROJECT OVERVIEW

Kremnica Gold Project -- Slovak Republic -- 100% owned

Kremnica was one of Europe's largest past producing gold mines with a recorded production of over 1.5 million ounces. In 2003, Tournigan acquired the mine and surrounding exploration licenses spanning 123 km2.

Since that time, Tournigan has advanced Kremnica along a two-pronged path:

• Exploring new target zones
• Developing the main Sturec open-pit deposit and its peripheries with the goal of putting it back into production

In May 2006, Beacon Hill Consultants tabled a NI 43-101-compliant measured and indicated resource estimate within the area of the existing Sturec gold deposit.

This estimate outlines 959 thousand ounces of gold and 7.7 million ounces of silver (measured and indicated) hosted within 18.8 million tonnes of material with an average grade of 1.59 g/t gold and 12.78 g/t silver. An additional 272 thousand ounces of gold and 1.5 million ounces of silver are classified in the inferred category - (6.4 million tonnes averaging 1.32 g/t gold and 7.42 g/t silver). The stated resources are based on a cutoff of 0.75 g/t gold.

Development schedule:

Tournigan is now in the midst of pre-feasibility, environmental and socio-economic studies at Kremnica. The project development plan is then expected to advance through feasibility studies, construction and production. The entire plan is estimated to be completed by the second half of 2008.

Detailed Kremnica property description

Click here to download Technical Report on Kremnica gold project resource estimate prepared by Beacon Hill (1988) Ltd.

Jahodna Uranium Project -- Slovak Republic -- 100% owned

In June 2005, Tournigan acquired the Jahodna uranium deposit and 32 km2 of surrounding exploration licenses.

Uranium mineralization was originally discovered at Jahodna in 1985. Three stages of exploration occurred between 1985 and 1992 that outlined historic uranium and molybdenum resources. Further studies were conducted on the property until 1996. Mineralization appears to remain open along strike as well as to depth.

Following 1,365 meters of confirmatory drilling to validate historic drill results, Tournigan engaged London-based ACA Howe International to complete an independent NI 43-101 technical report containing a current resource estimate of the deposit.

This report was released in late March of 2006 and outlined an inferred resource containing 18.2 million pounds of Uranium Oxide (U3O8) hosted within 1.25 million tonnes of material with an average grade of 0.66% U3O8 at a cutoff of 0.035% U3O8.

Jahodna project strategy:

• Drill additional in-fill holes to generate additional information about the deposit and possibly increase the existing resource.
• Complete step-out drilling of the main Jahodna deposit with the goal of increasing the strike length of the deposit.
• Explore for new zones of mineralization.
• Conduct necessary steps to move the deposit into production.

Detailed Jahodna property description Current exploration activities

Curraghinalt Gold Project -- Northern Ireland -- 100% owned

Tournigan purchased the Curraghinalt gold project in April of 2003 from Strongbow Exploration.

Previous exploration at Curraghinalt in the 1980's and 1990's consisted of more than 17,000 meters of drilling and 697 meters of underground development work as well as extensive surface trenching.

Aggressive exploration and drilling campaigns since Tournigan's involvement in 2003 have not only confirmed and expanded the historic Curraghinalt resource estimate but also identified three new parallel gold-bearing vein systems.

A NI 43-101 inferred resource estimate on the deposit was completed by John Tully & Associates in January of 2005. A total of 262,000 ounces of gold were outlined, contained within 527,700 tonnes of material, with an average grade of 15.45 g/t gold at a cutoff of 6.0 g/t gold. This estimate currently encompasses 700 m of the known 8.0 km long Curraghinalt trend.

Curraghinalt project strategy:

• Expand and upgrade existing resource via in-fill and step out drilling as well as underground exploration development work.
• Complete preliminary assessment.
• Advance project through requisite steps for permitting, building and operating an underground gold mine.

Detailed Curraghinalt project description

Earlier-stage Exploration Assets

Novoveska Huta Uranium Project -- Slovak Republic

Svabovce and Spissky Stiavnik Uranium Projects -- Slovak Republic

Uranium Portfolio in Wyoming, South Dakota and Arizona, USA

Brehov Gold/VMS project -- Slovak Republic

AuEx joint venture with gold projects -- Nevada, USA

More information:
Sprott Asset Management's Uranium report, with Tournigan price target at CAD 4.40.
Ressource Capital Research have an Uranium Sector Review as well with analysis of Tournigan and many other uranium companies.