Tournigan’s uranium resource estimate gets major boost,
feasibility study is next
By Resource Intelligence · May 16, 2012
Tournigan Energy Ltd (TSXV:TVC) is an exploration and development
company that has built a portfolio of highly prospective uranium
projects in Slovakia. By the first quarter of 2012 Tournigan will
complete its re-launch 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.
Resource Intelligence: Kuriskova in East Central Slovakia is your
flagship property. Could you update us on the latest resource
estimates?
Dusty Nicol: The June 2011 estimate, compared to the earlier
resource estimate, added 39% to the Indicated Resource (increasing
it to 28.5 million lbs of U3O8 at a grade of 0.555% U3O8). With the
additional 12.7 million lbs of U3O8 in inferred Resource at a grade
of 0.185% U3O8, this estimate increased the overall resource at
Kuriskova by 3.1 million lbs of U3O8 and ongoing metallurgical test
work has confirmed uranium recoveries of 93-94%.
RI: Could you give investors a sense of how significant this
uranium deposit is?
DN: Kuriskova is one of the highest grade undeveloped uranium
deposits in the world. By comparison, Strathmore’s Roca Honda
project in New Mexico that is being developed in joint venture with
Sumitomo Corp, has measured and indicated resources of 3.7 million
tonnes at an average grade of 0.23% containing 17.5 million lbs of
U3O8. Kuriskova could supply all of Slovakia’s domestic consumption
of 300 tonnes of uranium metal per year, with the remainder
available for export. The fact that Slovakia depends on nuclear
energy for close to 50% of its power makes Kuriskova a very
significant and strategically important deposit for Slovakia.
RI: What stage is the Kuriskova project at now and what are your
priorities for the project in 2012?
DN: We will begin the Feasibility Study which will take between 18
to 24 months to finish and we will drill test some of the exciting
exploration targets that have been identified within the Kuriskova
project area. There is significant growth potential beyond the
current defined mineral resources.
RI: Aside from increasing the resource estimate at Kuriskova, what
other milestones did the Company achieve last year?
DN: The Company completed an initial resource estimate at the
Novaveska Huta project also located in East Central Slovakia in
October 2011, adding pounds of U3O8 to our resource inventory and
the project is open to the east and north.
A very significant milestone happened in December 2011 when we
formed a strategic alliance with AREVA and welcomed them as a
shareholder. Andreas Mittler, Vice President, Expertise and
Projects Department of AREVA Mines joined our board of directors.
Tournigan has entered into a technical services agreement with
AREVA to perform a work program comprising metallurgical and
environmental test work to be part of the Kuriskova feasibility
study. AREVA’s public alliance and their technical expertise should
also assist Tournigan in the permitting process for the
project.
RI: It will be a year this March since the Fukushima nuclear
accident and it has affected share prices of uranium companies
including Tournigan’s. Do you see this as a short-term problem?
DN: The Fukushima accident affected all uranium equities, including
ours. Fortunately we were well funded and we have not sought to
raise equity financing since that accident. Tournigan will continue
to build on the fundamental value of its projects to position it
for a market revaluation upon an improvement in uranium prices.
RI: What would you tell investors who might be discouraged from
investing in uranium exploration companies because of
Fukushima?
DN: I think that the effects of Fukushima will be mitigated by the
mid- to longer-term outlook and demand for uranium. Despite some
countries making what must be viewed as a politically driven
decision to abandon – or stated intention to abandon – nuclear
power, the annual consumption of those countries is insignificant
when compared to China and India. Currently China is constructing
26 nuclear reactors, which are 42% of global construction. There is
no real substitute for nuclear energy in the fast-growing Chinese
economy. Russia and India continue construction of reactors and it
is said that Russia will halt exports of uranium in 2013, which
will decrease supply that can’t currently be made up elsewhere. It
is hard to imagine an energy mix for the world that does not
include a significant nuclear component.
RI: What can investors expect from Tournigan over the next 12 to 18
months?
DN: We will advance the Feasibility Study at Kuriskova and continue
to add to our uranium resource inventory in Slovakia, Sweden and
Finland. There is often an excessive lag in the valuations of some
companies between preliminary feasibility studies and bankable
feasibility studies that provides investment openings because
resource inventories often continue to grow between the two
studies. We hope that is the case with Tournigan as well.
RI: What would differentiate Tournigan from other players in the
field of uranium exploration? Is there anything else you’d like to
tell investors?
DN: European Uranium Resources Ltd will be an advanced stage
pure-play uranium company focused in Europe, well placed to benefit
from an increase in the price of uranium.
Investor Highlights
- Pure uranium play
- Solid fundamental value – high-grade uranium resource nearing
development
- Strong supportive shareholders including
- AREVA which is ranked first in the global nuclear power industry
and a key player
- in uranium mining
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