Tournigan Takes Final Steps To Become European Uranium Resources Ltd.
Vancouver, February 22, 2012-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
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.
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.
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.
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.
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.
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.
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.
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 European Uranium Resources Ltd.
European Uranium Resources Ltd. (formerly Tournigan Energy Ltd.) is a dedicated European uranium exploration and development company that has built a portfolio of outstanding projects in Slovakia, Sweden and Finland at all stages of the exploration / development pipeline. European Uranium is well placed to become the key uranium exploration and development company in Europe. Europe is the world's largest per capita consumer of uranium with 160 reactors and more under construction or planned, but with only one currently operating uranium mine. The Company's Kuriskova Project in Slovakia could be one of the world's lowest cost uranium producers. European Uranium has a strong base of supportive shareholders including AREVA, ranked first in the global nuclear power industry and a key player in uranium mining and nuclear operations on a world-wide basis.
EUROPEAN URANIUM RESOURCES LTD.
Dorian L. (Dusty) Nicol, President and CEO
For further information please contact: Doris Meyer, at (604) 536-2711, or visit www.euuranium.com.
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