Tournigan Forges Alliance with Areva, Acquires Scandinavian Uranium Assets
Tournigan Energy Ltd. (TVC: TSX-V; TGP: Frankfurt) is pleased to announce the following transactions:
Tournigan to undertake an exclusive private placement of 14,285,714 units with AREVA for proceeds of $1,000,000;
Tournigan to enter into a Technical Services Agreement with AREVA whereby AREVA will perform a work program comprising metallurgical and environmental test work to be part of the Kuriskova feasibility study;
AREVA to nominate a representative to the Tournigan board;
Tournigan to acquire all of Mawson Resources Ltd.’s (MAW: TSX) right, title and interest in and to 7 uranium exploration projects located in Sweden and Finland for aggregate consideration of 53,639,848 common shares of Tournigan; and
Tournigan to change its name to European Uranium Resources Ltd. and to complete a consolidation of its shares on a 1 new for 5 old basis.
“Europe has 186 nuclear power plants in operation and 19 new plants under construction. At this time, there is only one operating uranium mine within the European Union, in the Czech Republic. Clearly, Europe has an urgent need to develop sustainable uranium production. European Uranium Resources will be the key uranium exploration company focused in Europe, the region with the world’s largest per capita consumption of uranium” said Dorian L. (Dusty) Nicol, Tournigan’s President and CEO.
“On completion of these transactions, the Company will have a greatly increased uranium portfolio throughout Europe and will have established a strong working relationship with AREVA, ranked first in the global nuclear power industry and key player in uranium mining. This relationship will assist the Company in the exploration and development of its properties, including the Company’s flagship Kuriskova uranium project in Slovakia on which we plan to begin a feasibility study early next year.”
The Acquisition
Tournigan has signed a non-binding letter of intent (the “Mawson Agreement”) with Mawson Resources Ltd. (“Mawson”) to purchase all of the issued shares of a Swedish corporation wholly owned by Mawson (“Mawson Sweden”) for aggregate consideration of 53,639,848 common shares of Tournigan (the “TVC Shares”).
Mawson will agree to distribute the TVC Shares on a pro-rata basis to the Mawson shareholders at some point in the future pursuant to a plan of arrangement. Until then Mawson has agreed that the TVC Shares will not have voting rights.
The Private Placement
The Company has offered AREVA, and AREVA has agreed to complete, an exclusive non-brokered private placement to raise $1,000,000 through the issuance of 14,285,714 units at a price of $0.07 per unit (the “Unit”). Each Unit will consist of one common share and one non-transferable common share purchase warrant, with each warrant entitling AREVA to purchase one additional common share in the capital of the Company at a price of $0.20 for a period of 3 years.
The Technical Services Agreement
The Company will enter 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.
Tournigan expects its prefeasibility study on the Kuriskova deposit, being prepared by Tetra Tech, Inc. of Golden, Colorado, to be completed early in 2012 and plans to begin work on the feasibility study shortly thereafter.
New Director
Concurrent with the closing of the transactions with AREVA, the Company will increase its board to 9 and will appoint AREVA’s nominee as a director. AREVA will have the right to nominate one person that is acceptable to the Company as management’s nominees for election to the Board of Directors of the Company until such time as AREVA no longer holds that number of shares equal to the number of Units purchased in the Private Placement.
Name Change and Consolidation
The Company plans to change its name to
European Uranium Resources Ltd. and consolidate its shares on a 1 new for 5 old basis.
Conditions of Closing
The parties’ obligations to complete the transactions are subject to TSX Venture Exchange approval of all elements of these transactions on terms acceptable to the parties, satisfactory results of due diligence and settlement of formal documentation.
The Scandinavian Properties Being Acquired
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 0.050% 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 and 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 37 exploration licenses covering 3,556.6 hectares.
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 Kläppibäcken 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.
Qualified Person
Dorian L. (Dusty) Nicol (RG, CPG and FAusIMM), Tournigan’s President and CEO, is the Company’s designated Qualified Person (QP) for this news release and has reviewed and validated that the information contained in the release is consistent with that provided by the QP’s whose work is referenced.
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.
With the pending acquisition of uranium properties from Mawson, Tournigan will be diversifying geographically by acquiring 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. For additional information, please contact Ms. Doris Meyer at (604) 536-2711 or visit www.tournigan.com.
TOURNIGAN ENERGY LTD.
"Dusty Nicol"
Dorian L. (Dusty) Nicol, President and CEO
