TQN Tarquin

RNS Number:1351Z
Tarquin Resources PLC
27 June 2007



                       TARQUIN RESOURCES PLC (AIM : TQN)
                          ("Tarquin" or "the Company")



27 June 2007



LAS PASCUALAS PROJECT


In April 2007, when reporting mineral resource estimates for the Las Pascualas
Project, it was advised that a scoping / pre-feasibility study had commenced.
Set out below is a summary of that study.



Las Pascualas, a typical porphyry copper deposit, located on the western side of
the Chilean Precordillera, is composed of three separate mineralised areas -
Norte (North), Este (East) and Sur (South).  Scout drilling on an alteration
zone at Pascuala Norte in April/May 2006 identified a potential supergene copper
enrichment zone and associated oxide mineralisation.  Two further drilling
programs during the year provided sufficient information to enable a block model
to be developed and a resource estimate to be completed based on 108 holes
totalling 12 510 m.  The Pascuala Norte Resource estimate, at a 0.2% copper
cut-off grade, is 29.9 million tonnes at an average grade of 0.59% total copper.



Owing to the position of the oxide and supergene mineralisation relative to the
surface, the deposit can be exploited by an open pit.  It is envisaged that
mining would be undertaken by an experienced contractor, with technical services
and supervision by company personnel. Conventional mining equipment centred
around hydraulic excavators and trucks would be used.  Pit optimisations were
done at three production rates and two copper prices before settling on two
detailed pit designs.  In the end, the smaller pit size was chosen (57.8 million
total tonnes with a strip ratio of 1.8:1.0).



Typical of operations in this part of Chile, our exploration staff have been
approached over the last 18 months by small-scale local miners ("piqueneros")
who have a number of small, high grade deposits in the vicinity of Las
Pascualas.  Without a ready market for their ore, these mines are essentially
idle, but the aggregate of their outputs with the Las Pascualas plant as a buyer
has been estimated at 500 000 tpa, at an average grade of 1.0% copper.



This additional purchased ore has been factored into the operating plan, which
enables a 15 000 tpa cathode output while mining at equivalent rate of somewhat
less than 12 500 tpa copper production during the heap leach phase of the
project life.



A comprehensive metallurgical test work program is in progress with preliminary
information from the first stage of a three phase program suggesting that
Pascuala Norte ores are clean and low acid consuming with rapid and good
recoveries.



The ore will be crushed and agglomerated before trucking to the leach pad area
where they would be loaded onto the pad in 5 to 6m lifts.



Electrical power would be sourced from the national grid.  Although it was
recommended to construct a new 40 km 110 kV power line from the Pan American
Highway to site, recent information suggests that a new 220 kV power line for
the Pascua Lama gold project located east of Las Pascualas on the
Chilean-Argentinean border will be constructed within 1 km of the project and so
may now be a more cost effective power supply option.



Water is available and supply options will be investigated in the feasibility
study.



An environmental baseline study has identified some minor flora and fauna issues
that will need to be addressed in the Environmental Management Plan.  Owing to
the location (remoteness from populated areas and general environment) and size,
there does not appear any significant issue that would negate project approval
from the authorities.  It is estimated that the project can gain the necessary
environmental approval within nine months after submission of the formal EIA
document, which is planned for third quarter 2007.



Three constant metal production rates were evaluated.  The total capital for the
Las Pascualas Project is estimated to be US$70 million for a 15 000 tonne Fine
Copper ('CuF') per year operation.



The average unit operating cost is estimated to be US$8.27/t ore treated for a
12 500 tonne CuF/year operation over the operation life at a strip ratio of 1.8:
1, and US$8.23/t for 15 000 CuF/yr when small-scale ore purchases are included.



Two cases have been considered for each production scenario (12 500 tonne CuF/
year and 15 000 tonne CuF/year) and are summarised below: Both were modified to
include 500kt/yr ore input from local small-scale miners.

*                     Conservative Case - estimated capital and operating costs,
75% metal recovery, US$1.65/lb copper price1.

*                     Base Case - estimated capital costs, ongoing operating
cost reduction initiatives negate inflation effects on costs, improved copper
recovery (80%), as well as higher copper prices2 in the first three years of
operation.



The financial results for the worked cases of the two production schedules are
shown below:



                          Summary of Financial Results


    Case                     12 500 tonne CuF/year                                 15 000 tonne CuF/year
             Capital    Cash     Life     NPV      IRR    Payback  Capital    Cash     Life     NPV      IRR    Payback
                        Cost    years                                         Cost    years
               US$m    US$/lb             US$m      %      years     US$m    US$/lb             US$m      %      years
Conservative    63      0.83     11.5      42       19      5.5       70     0.745     9.3      112       23      3.7
Case
Base Case       63      0.80     11.5     113       48      2.7       70      0.72     9.3      150       40      2.5



There is little difference between the two production rates in both scenarios
with the higher production rate (15 000 tonne CuF/year) proving to be marginally
better.  This means that the project life would be around 9.5 years excluding
1.5 years pre-strip and project development.



The Conservative Case result shows that the project is robust, and if the Base
Case parameters are met, then the project is financially attractive.



An area that can significantly impact project economics is the primary ore
potential at Las Pascualas which from several short drill intercepts to date, an
expected grade could be 0.4%Cu, 300ppm Mo, 0.5g/t Au and up to 300M tonnes. This
would have an equivalent grade of 1.0% Cu ore for Stage II Las Pascualas.  This
primary zone has the potential to at least double the mine life following the
installation of a flotation plant at the end of the heap leach life.



Note that the estimates and economic performance in this study relate only to
the heap leach operations from the oxide and secondary sulphide enrichment zone,
and no contribution is included from mining the primary zone.





1 15% discount to Codelco long term forward price

2 LME forward price for copper of - US$3.00/lb used for yr 1; US$2.00/lb
for yrs 2 & 3; with US$1.65/lb long-term price



Roger Shakesby, who is a Director of the Company, is a Member of the
Australasian Institute of Mining and Metallurgy and the Geological Society of
Australia and is the qualified person that has reviewed and approved the
technical information contained in this announcement.  He has a B.Sc from the
University of Durham in Geology and Geography and has 45 years experience in the
mining industry.  His knowledge gained in PNG, the Philippines, the USA and
Chile is relevant to the style of mineralisation and deposit formation in Chile.





For further information:

Annie Richards, Tarquin Resources plc                    +44 (0) 20 7514 1480
Hugh Oram, Nabarro Wells & Co Ltd                        +44 (0) 20 7710 7400
Charles Vivian, Pelham Public Relations                  +44 (0) 20 7743 6672










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