Tournigan Takes Final Steps to Become European Uranium Resources Ltd.
Tournigan Energy Ltd. (TVC: TSX-V; TGP: Frankfurt). As first announced
on December 7, 2011, Tournigan is taking the final steps to form a
strategic alliance with AREVA, the French nuclear energy and uranium
mining conglomerate, and acquire seven uranium properties from Mawson
Resources Ltd. located in Sweden and Finland. The record date will be
March 1, 2012, for the consolidation of the common shares of Tournigan
on a 5 old for 1 new basis and its name will be changed to European
Uranium Resources Ltd. At the opening of trading on March 1, 2012, the
Company will trade on the TSX Venture Exchange as EUU.
On February 29, 2012, Tournigan will issue 53,639,848 common shares to
Mawson Resources Ltd. Mawson will distribute the Tournigan shares on a
pro rata basis to its shareholders pursuant to a plan of arrangement
prior to April 30, 2012. Until then, Mawson has agreed not to exercise
the voting rights attaching to the Tournigan shares.
'We have been preparing for this re-launch of the Company as an advanced
stage pure-play uranium company called European Uranium Resources Ltd
with projects in Slovakia, Sweden and Finland. Europe has 186 nuclear
power plants in operation and 19 new plants under construction and there
is only one operating uranium mine within the European Union, in the
Czech Republic. Clearly, Europe, a region with the world′s largest per
capita consumption of uranium, has an urgent need to develop uranium
production? said Dorian L. (Dusty) Nicol, Tournigan′s president and
chief executive officer.
The Scandinavian Properties Being Acquired
Sweden
Hotagen District
The Hotagen District comprises 4 exploration claims covering 6,693
hectares. The Hotagen District uranium deposits are located in the
northeastern portion of a geologic province known as the Olden Window in
west-central Sweden. It is so called because it is an isolated area of
Proterozoic basement rocks exposed as an erosional window within younger
late Precambrian to early Paleozoic sequences that form the Caledonide
Mountains separating Sweden and Norway. Uranium mineralization occurs as
veins and breccias (locally fluorite rich) developed in a uranium rich
granite host rock.
The district includes the Klappibacken project. On February 29, 2008,
Mawson filed on its company profile on www.sedar.com
a technical report dated February 28, 2008 entitled 'Technical Report on
the Review of Three Uranium Properties in Northern Sweden: Klappibacken,
Duobblon and Tassjo?, written by Mr. Andrew Browne of GeoSynthesis Pty.
Ltd. The author prepared a resource estimate on the Klappibacken deposit
on behalf of Mawson. This resource estimate comprises an Indicated
Resource of 1.28 million tonnes averaging 0.077% U3O8 and containing
2.17 million pounds of U3O8. The estimate was based on 34 diamond drill
holes totaling 4,220 metres. On July 16, 2008 Mawson issued a news
release updating this resource estimate. The updated estimate was
prepared by Mr. Andrew Browne of GeoSynthesis Pty. Ltd. and incorporated
results from an additional 20 diamond drill holes completed after
publication of the February 2008 resource estimate. The updated resource
estimate comprises a Measured and Indicated Resource of 1.94 million
tonnes averaging 0.08% U3O8, containing 3.3 million pounds of U3O8 using
a cut-off of 0.025% U3O8. Tournigan considers these resource estimates
to be relevant but Tournigan has not independently verified the
estimates. A qualified person has not done sufficient work to classify
the historical estimate as a current mineral resource and Tournigan is
not treating the historical estimate as a current mineral resource.
Other exploration results include discovery of sixty-six uranium
mineralized outcrops within the exploration claims over an area of 8
kilometres by 7 kilometres surrounding the Klappibacken project.
Sampling results from these outcrops included forty assays above 0.05%
U3O8, which ranged from 0.05% U3O8 to 8.04% U3O8 and averaged 0.79%
U3O8. The discovery of these uranium mineralized outcrops is significant
considering that outcropping rock accounts for less than 10% of the
surface area in the Hotagen district, with the remainder of the area
blanketed under a thin 1-2 metre soil veneer.
To date, 155 shallow diamond drill holes have been drilled on three
prospects within the project area: Klappibacken, Ravinen and Urban Hill.
The best drill result is 56 metres at 0.1% U3O8 beginning at a depth of
20 metres. New targets have been identified up to 1 kilometre along
strike from the Klappibacken resource and additional targets have been
identified for drill testing.
Tournigan intends to continue exploration in the district by drill
testing for extensions to the recognized mineralization and by
identifying and drill testing new targets. In due course, Tournigan may
elect to verify and update the historical resource estimates.
Duobblon Project
The Duobblon project area, with exploration licenses covering 1,524
hectares, is located in northwest Sweden. Uranium mineralization is
associated with an acid volcanic (ignimbrite) and sedimentary sequence.
On February 29, 2008, Mawson filed on its company profile on www.sedar.com
a technical report dated February 28, 2008 entitled 'Technical Report on
the Review of Three uranium Properties in Northern Sweden: Klappibacken,
Duobblon and Tassjo? written by Mr. Andrew Browne of GeoSynthesis Pty.
Ltd. The author prepared a resource estimate on the Duobblon project on
behalf of Mawson. This resource estimate comprises an Inferred Resource
of 13.8 million tonnes averaging 0.029% U3O8, containing 8.75 million
pounds of U3O8 using a cut-off of 0.01% U3O8. This estimate was based on
55 diamond drill holes totaling 10,300 metres. Tournigan considers this
resource estimate to be relevant but Tournigan has not independently
verified the estimate. A qualified person has not done sufficient work
to classify the historical estimate as a current mineral resource and
Tournigan is not treating the historical estimate as a current mineral
resource.
Tournigan intends to conduct further drilling to upgrade confidence in
the resource and test possibilities for expansion of the mineralization,
together with initial metallurgical test work. After this has been
completed, Tournigan may elect to verify and update the historical
resource estimate.
Kapell Project
The Kapell Project in central Sweden comprises a 15 kilometre trend with
potential for roll-front type sediment hosted uranium mineralization.
Exploration licenses cover an area of 4,379 hectares. To date three
target areas have been identified: Aviken, where drill intercepts of
2.65 metres at 1.54% eU3O8 ('eU3O8? is equivalent U3O8 based on
radiometric logging) beginning at a depth of 21.8 metres and 2.65 metres
at 1.05% eU3O8 beginning at a depth of 3.2 metres have been reported:
Solvbacktjarn where a drill intercept of 1.55 metres at 2.38% eU3O8
beginning at a depth of 8.35 metres has been reported; and Tossassjon,
where 18 mineralized outcrops and 392 mineralized boulders have been
identified over a strike length of 1.6 kilometres.
Aronsjo Project
The Aronsjo Project is an early stage property considered prospective
for breccia-hosted uranium mineralization in sodium metasomatized
granites. Exploration licenses cover an area of 1,844 hectares.
Finland
Nuottijarvi Project
The Nuottijarvi uranium deposit is located in north-central Finland
about 35 kilometres northeast of the town of Kajaani. The project area
comprises one exploration license covering an area of 96 hectares.
Nuottijarvi was discovered in 1959 by Outokumpu Oy, who explored the
property intermittently until 1969, conducting radiometric and magnetic
surveys and electromagnetic surveys and geologic mapping. A total of
6,679 metres were drilled in 43 diamond drill holes. Outokumpu also
extracted an 867 tonne bulk sample which had an average grade of 0.05%
U3O8 and 1.10% P.
Uranium mineralization at Nuottijarvi occurs as uraninite associated
with fluorapatite breccia, hosted by a carbonate-apatite horizon at the
contact between quartzite and graphitic breccia. The mineralized body is
approximately 40 metres thick, extends from surface to a vertical depth
of 80 metres, trends over a strike length of 400 metres and remains open
along strike and at depth.
On September 8, 2010, Mawson filed on its company profile on www.sedar.com
a technical report dated August 6, 2010, entitled 'Report on the
Geology, Mineralization and Resource Estimation of the Nuottijarvi
Uranium-Phosphate Deposit, Central Finland?, written by John Nebocat of
PGS Pacific Geological Services and Geoff Reed of Reed Leyton
Consultants. The authors prepared a resource estimate of the Nuottijarvi
deposit on behalf of Mawson. This resource estimate comprises an
Inferred Resource of 2.0 million tonnes averaging 0.074% U3O8 and
containing 3.27 million pounds of U3O8 using a cut-off of 0.03% U3O8.
The estimate was based on 43 diamond drill holes totaling 6,679 metres,
drilled on a 50 metre by 50 metre drill pattern. Tournigan considers
this resource estimate to be relevant but Tournigan has not
independently verified the estimate. A qualified person has not done
sufficient work to classify the historical estimate as a current mineral
resource and Tournigan is not treating the historical estimate as a
current mineral resource.
A program of metallurgical studies is recommended to determine what
proportion of the uranium is contained in uraninite versus apatite (a
phosphorus-bearing mineral) and whether the uranium is separable from
the phosphorus. In addition, further drilling should be done to test for
lateral and depth extensions of the deposit. In due course after this
work is completed, Tournigan may elect to verify and update the
historical resource estimate.
Riutta Project
The Riutta project is located in southeastern Finland near the town of
Joensuu. The project area comprises 10 exploration licenses covering
790.2 hectares. Mineralization at the project area was discovered in
1958 by a prospector who identified mineralized boulders. Since then,
exploration on the project has been performed by Atomienergia
(1958-1959), Outokumpu Oy (1960-1963), the Geological Survey of Finland
(1983-1988) and AREVA (2008-2009). Over 500 mineralized boulders have
been identified at Riutta, with more than one hundred of these boulders
giving assays over 1.0% uranium. Trenching has exposed uranium
mineralization occurring as veins and pockets of pitchblende.
A total of 65 drill holes (6,275 metres) have been drilled at Riutta.
Drilling has been restricted to shallow holes separated by long
timeframes. The best drill results to date include 11.3 metres at 0.68%
U3O8 (including 3.7 metres at 1.53% U3O8) beginning at a depth of 28.3
metres; 3.6 metres at 1.10% U3O8 (including 0.35 metres at 9.79% U3O8)
beginning at a depth of 42.0 metres; and 1.0 metres at 0.35% U3O8
beginning at a depth of 63.3 metres. Several zones of mineralized trends
remain untested by drilling. High uranium grades have been intersected
within 450 metres of strike within a larger 3.6 kilometre trend.
Uranium mineralization at Riutta consists of pitchblende veins and
infill in breccias within a quartz sericite schist host rock. The
bedrock comprises Archean gneisses overlain by Proterozoic quartzites.
Mafic and ultramafic dykes cut across these. Alteration is extensive and
includes epidote, chlorite, quartz, sericite, albite, potassium feldspar
and carbonate.
Asento Project
The Asento ('10,000 Boulders?) project is a new discovery that is
located in north-central Finland. A large number of mineralized boulders
have been identified and the project area is considered prospective for
vein-style hydrothermal uranium deposits within Archean granites.
Applications have been filed for exploration licenses covering 3,556.6
hectares.
Qualified Person
The technical content of this release has also been reviewed and
approved for Tournigan by Dorian L. Nicol, President and CEO of
Tournigan, and a Qualified Person as defined in NI 43-101.
About Tournigan
Tournigan is a uranium exploration and development company. The
company′s flagship asset is the Kuriskova uranium deposit in Slovakia,
among the highest grade uranium deposits in the world. Slovakia
currently has four nuclear reactors generating half of its electricity,
with two more reactors planned or under construction.
Tournigan is now diversified geographically by the acquisition of these
uranium projects in Sweden and Finland, also members of the European
Union and countries which rely on nuclear generated electricity. In
Sweden, ten nuclear reactors generate over 40% of the country′s
electricity. Finland currently has four operating reactors generating
about 28% of the country′s electricity. A fifth large nuclear plant is
under construction in Finland with plans firming for a sixth. Tournigan
is committed to safe and sustainable exploration and mine development.
TOURNIGAN ENERGY LTD.
'Dusty Nicol'
Dorian L. (Dusty) Nicol, President and CEO
For further information please contact: Doris Meyer, at ?(604) 536-2711,
or visit www.tournigan.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement:
This news release contains forward-looking statements that are based on
the Corporation's current expectations and estimates. Forward-looking
statements are frequently characterized by words such as 'plan',
'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate',
'suggest', 'indicate' and other similar words or statements that certain
events or conditions 'may' or 'will' occur. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ materially
from estimated or anticipated events or results implied or expressed in
such forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans to continue
to be refined; possible variations in ore grade or recovery rates;
accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing; and
fluctuations in metal prices. There may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable securities
laws, the Corporation disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are
not guarantees of future performance and accordingly undue reliance
should not be put on such statements due to the inherent uncertainty
therein.
Notice to US investors:
This press release uses the terms 'indicated resources' and 'inferred
resources', which are calculated in accordance with the Canadian
National Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy Classification system. We advise investors that while those
terms are recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission do not recognize them. U.S. investors
are cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves. In addition,
'Inferred resources' have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an Inferred
Mineral Resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of Inferred Mineral Resources may not form the
basis of feasibility or pre-feasibility studies, except in certain
exceptional cases. U.S. investors are cautioned not to assume that part
or all of an inferred resource exists, or is economically or legally
minable.
Tournigan Energy Ltd.
Doris Meyer, (604) 536-2711
www.tournigan.com
