Friday, 16 March 2012

European Uranium Resources set for busy 2012 as it advances several uranium properties

European Uranium Resources (CVE:EUU) gave Thursday its outlook for the year, following its recent name change and series of transactions designed to increase its Uranium presence in Europe.
As first announced in early December, European Uranium Resources, formerly Tournigan Energy, formed a strategic alliance with AREVA, the French nuclear energy and Uranium mining conglomerate, and acquired seven Uranium properties from Mawson Resources (TSE:MAW) in Sweden and Finland.
The company said it is now 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 operating reactors and more under construction, but with only one currently operating Uranium mine in the Czech Republic.
European Uranium now has a portfolio of Uranium projects in Slovakia, Sweden and Finland - at all stages of the exploration and development pipeline.
The flagship property is the high-grade Kuriskova project in Slovakia, which consists of 32 square kilometres of mineral licenses situated approximately 10 kilometres northwest of the city of Kosice, a regional industrial centre in Slovakia.
A recent pre-feasibility study showed positive economics for the project, with a base case net present value of $276 million at an eight percent discount rate, and a 30.8 percent internal rate of return.
European Uranium, with $8.5 million in the bank as at year-end 2011, said that over the next 12 to 18 months, the company expects to advance the feasibility study and associated environmental impact studies at Kuriskova, and explore the potential for arranging a production off-take agreement or joint venture to fund the completion of the major study.
The Uranium company also plans to define the structure that will allow for production at Kuriskova, which could involve a production off-take deal with Slovakia, or a partnership with a Slovak entity, it said. The Kuriskova property has an indicated resource of 28.5 million pounds of Uranium oxide.
European Uranium is also looking forward to exploration drilling at the project, as well as exploration programs on other Slovak Uranium prospects, and the advancement of its newly acquired Swedish and Finnish assets.
The development of the Kuriskova property has the potential to supply Slovakia with Uranium for 30 years, the company said, as there are multiple exploration targets within the license area that can boost the resource.
In addition to Kuriskova, European Uranium also has the Novoveska Huta deposit, on which a resource has been defined, plus several exploration targets on other licenses in Slovakia.
Among its seven new Sweden and Finland properties, the Riutta project in Finland stands out, with recent results announced by Mawson last September.
Mawson reported that the best result from a 10 hole diamond drill program at the Riutta project totaling 1,065 metres came from drill hole AREVA DH 1, which intersected 11.3 metres at 0.68% Uranium oxide (U3O8), including 3.7 metres at 1.53% U3O8 from 28.3 metres.
The hole shows the potential for high grade and near surface Uranium at the Riutta project. High grade Uranium mineralization has now been drilled over 450 metres of strike within a larger 3.6 kilometre trend at Riutta, which is fully permited for exploration.
Mineralization remains open along strike and down dip, the company added.

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