European Uranium doubles expected grade at Kuriskova deposit

European Uranium Resources (CVE:EUU) Tuesday reported that its drill program has yielded double the expected grades of Uranium at its Kuriskova deposit in Slovakia.
The company said that the drill program of three planned metallurgical drill holes at Kuriskova, began in May and is expected to be completed in July 2012.
European Uranium noted that hole LE-K-73, the first of the three, was completed last week and intercepted much higher than expected Uranium grade in the main zone of the Kuriskova deposit.
Drill hole LE-K-73 returned 4.9 metres at 0.85 per cent Uranium oxide (U3O8), including 1.3 metres at 1.67 per cent U3O8, intersected at a depth from 455.9 to 460.8 metres from surface.
The company said that the mineralization intersected in hole LE-K-73  is about 10 per cent thicker and more than double the grade in the most recent resource model - 4.5 metres at 0.39 per cent U3O8.
"Kuriskova is recognized as one of the highest grade Uranium deposits in the world," said president and CEO Dorian L. Nicol.
"This drill hole confirms the tremendous potential that Kuriskova has to grow beyond its already impressive resource."
European Uranium has a portfolio of Uranium projects in Slovakia, Sweden and Finland - at all stages of the exploration and development pipeline.
The flagship Kuriskova project in Slovakia consists of 32 square kilometres of mineral licenses situated roughly 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 per cent discount rate, and a 30.8 per cent internal rate of return.
An April 2011 NI 43-101 compliant resource estimate, audited and approved by Tetra Tech, comprises an indicated resource of 28.5 million pounds of U3O8 at a grade of 0.555 per cent, contained in 2.3 million tonnes. An additional inferred resource is estimated at 12.7 million pounds of U3O8 at a grade of 0.185 per cent, contained in 3.1 million tonnes, at a cut-off of 0.05 per cent Uranium.
European Uranium said that it will continue advancing critical aspects of a feasibility study and environmental impact study for the Kuriskova deposit.
The metallurgical samples collected from the ongoing drill program will be tested by French nuclear energy giant Areva, a significant shareholder of European Uranium, later in the summer and fall of 2012, as part of a technical services agreement with the French company.
The aim is to optimize the process flow sheet as described in the preliminary feasibility study.
European Uranium said it has been conducting surface exploration work on targets within the Kuriskova license area, with the objective of defining drill targets that could lead to expansion of the current resource.
As first announced in early December 2011, European Uranium, formerly Tournigan Energy, formed a strategic alliance with Areva, and acquired seven Uranium properties from Mawson Resources (TSE:MAW) in Sweden and Finland.
Looking ahead, the company said that work programs for the Swedish and Finland Uranium prospects will be conducted in late summer and fall of this year.
European Uranium 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.
In March, European Uranium said that over the next year and a half, 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 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 Sweden and Finland properties, the Riutta project in Finland stands out.
Mawson reported last September that the best result from a 10 hole diamond drill program at the Riutta project came from drill hole AREVA DH 1, which intersected 11.3 metres at 0.68 per cent Uranium oxide (U3O8), including 3.7 metres at 1.53 per cent U3O8 from 28.3 metres.
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 permitted for exploration.
Mineralization remains open along strike and down dip, the company added.