Harry Norman from Proactive Investors speaks to Dusty Nicol, President and CEO of Tournigan Energy, renamed European Uranium Resources on March 1st 2012. European Uranium Resources is listed on the TSX Venture Exchange, General Mining Sector. Stock ticker EUU, share price 48.5 cents Canadian; market capitalisation 25.4 million dollars Canadian. This follows an issue of shares and a 5 for 1 share consolidation leaving just over 52.3 million shares outstanding. European Uranium Resources is also listed on the Frankfurt Exchange. www.euresources.com

Harry Norman: In December Tournigan Energy announced that it had formed a strategic relationship with the energy giant AREVA. What is AREVA’s interest in Tournigan and what is the basis of this strategic relationship?

Dusty Nicol: AREVA has become a shareholder of our company and has the right, through its current shareholding and its options to own a bit over 10% of the company, making it our second largest shareholder. It alsoalso appointed an AREVA nominee to our board .

AREVA’s interest in its investment and its participation is to have the inside track on development of our Kuriskova Uranium deposit in Slovakia. From our perspective, our interest in having AREVA’s involvement was the stamp of credibility that AREVA’s involvement would provide. From the side of our host countries Slovakia, the importance of the relationship is again the stamp of credibility that is provided by one of the leading nuclear and uranium mining companies of the world taking such a strong position in our company. 

We have been very excited by this, we have working toward developing a relationship with AREVA since I took this job and it represents the culmination of very extensive due diligence on AREVA’s part and a great effort on our part to get them involved. 

Harry Norman: Dusty please would you talk us through the salient points of the pre-feasibility study published in January for your flagship project, Kuriskova in East Central Slovakia?

Dusty Nicol: Yes  we have just published the results of this study; the full report is being written right now and will be published within a few weeks. The results of the study are better than we could have hoped for. The study demonstrates that Kuriskova would be one of the lowest cost producers of Uranium in the world. During the first four years of mine life production costs would be well under 17 dollars per pound of Uranium. 

Over life of mine the mine costs are under 23 dollars per pound. So by any information that we are able to look at this would make Kuriskova one of the lowest cost producers in the world. On an annual basis approximately 30% of Kuriskova’s production over mine life would provide all of Slovakia’s domestic needs, leaving the remainder available for export to a funding partner that paid for the construction and development of the mine. 

The other salient numbers are in IRR at just under 31%; they pay an almost astoundingly fast payback of 1.9 years after beginning of production.  So overall Kuriskova has robust economics and would be one of the lowest cost producers in the world. 

Harry Norman: What can you tell us about the state of reserves and resources at Kuriskova and what are your immediate plans for Kuriskova? 

Dusty Nicol: The most recent resource estimate is the one that we announced just under a year ago that shows 28 ½ million pounds of Uranium at a very high grade at over 0.55% uranium oxide and additional 12.6 pounds in inferred. 

That resource was the basis for the reserves which was used for the pre-feasibility study. The reserves come in at about 21 1/2 million pounds. That is the portion of the indicated resource on which a mine plan has been put for the pre-feasibility. There is certainly some potential to expand that resource down dip; we think that that is best done from underground drilling during development. There is potential to expand the resource drilling some near surface targets that we have to the west of the main zone. We will likely do a preliminary drilling programme on those targets this year.

Harry Norman: Please would you tell us about your other uranium assets in Slovakia and your recent uranium acquisitions in Sweden and Finland?

Dusty Nicol: Well we have several additional exploration properties in Slovakia including Novoveska Huta which has a 43 101 resource on it already of about 3 ½ million pounds measured and indicated; and an additional about 13 million pounds inferred. And several other exploration targets without 43 101 resources at the moment but certainly interesting exploration targets that could be advanced in future.

In Scandinavia we have acquired several properties in Sweden and Finland; in several cases these have historical 43 101 resources on them and these are all properties that fit into different stages of the exploration and development pipeline. But all properties represent exciting upside for the company.

Harry Norman: Dusty what can you tell us about operating the uranium exploration and development company in Slovakia? 

Dusty Nicol: Well in many ways Slovakia is an ideal place to work as Slovakia gets over half of its power from nuclear. It is the world’s third largest consumer of nuclear energy after France and Lithuania. It is a very natural place to be developing a uranium deposit. There has been of course some opposition to the project as there is opposition to any project for any commodity anywhere in the world. But the nice thing about working in Slovakia is the recognition that its deposits could form an integral part of Slovakia’s energy policy; and the recognition that Kuriskova by itself could provide all of Slovakia’s uranium needs with a surplus left over. 

Harry Norman: Dusty what are your thoughts on the Uranium market post Fukushima?

Dusty Nicol: I think most people agree that uranium will come back; it was indeed starting to come back before the tragic events of Fukushima. There was certainly an anti-nuclear outcry after Fukushima and yet now we are seeing essentially worldwide no slowdown in plans for reactor builds. In fact the first two reactors to be permitted in my country, the United States, in 34 years were permitted during the last week. 

Any supply demand forecast that one looks at predicts a growing gap in uranium supply beginning as early as this year or as late as two or perhaps three years from now. We don’t make any of our decisions on uranium prices going up; or on trying to time the prediction of when it will go up. However we think the price will go up before too long and our goal is to be positioned so that our shareholders are able to take advantage of it when it does. 

So the short answer to your question is I think inevitably the uranium price will rebound; inevitably there will be a shortage of uranium developing over the next couple of years. 

Harry Norman: On January 4th Tournigan completed a private placement by AREVA for one million dollars US gross. Please talk us through the company’s capital structure and financial situation going forward.

Dusty Nicol: Well we ended our fiscal year with over 10 million dollars in the bank. The AREVA private placement which has closed was part of a transaction which also included issuing about 50 million shares of Tournigan for the acquisition of the Scandinavian properties that we talked about earlier. Post that acquisition Tournigan would have just over 250 million shares. We viewed this as an opportune time to do a five for one consolidation and change the name of the company. So when we complete the Scandinavian acquisitions which will be within the next few weeks, we will do a five for one roll back, leaving us with just over 50 million shares outstanding. And we will be changing the name of the company from Tournigan to European Uranium Resources which we think more accurately reflects the business focus and future of the company. 

Harry Norman: What can investors expect from Tournigan Energy over the next 12 to 18 months?

Dusty Nicol: Well in the very short term we will get the corporate transactions behind us so that we will have closed the Scandinavian acquisitions, completed the share roll back and completed the name change to European Uranium Resources. We will continue advancing the Kuriskova feasibility study and associated environmental impact study. We will do at least some preliminary drilling on the priority exploration targets in the Kuriskova licence; and on the other Slovakian and Scandinavian properties.

We expect during the next 12 or 18 months to be able to define the structure; whether it is a partnership with a Slovak entity or an understanding with the Slovak Government. But we will expect to be able to define the mechanism that gets the proportion of Kuriskova production to fill Slovakia’s domestic consumption needs into Slovakia; so that they form a part of Slovakia’s energy future. 

Harry Norman: Can we expect Tournigan to list on European Exchange soon?

Dusty Nicol: We already cleared on the Frankfurt Exchange where our symbol is TGP; I have believed for a long time that our natural shareholder base was in Europe and in the UK. As we market the company more on the continent and in the UK I think more of our shareholder base will move to that side of the Atlantic. Then at some time in the future if it is appropriate we will certainly look to get an additional listing; either in London or on the continent. 

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.

As first announced in early December, 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 (TSE:MAW) located in Sweden and Finland.

Part of the deal entails Tournigan changing its name to European Uranium Resources, as well as the consolidation of its shares on a five old for one new basis, with a record date of March 1, 2012.

At the opening of trading on March 1, the company will trade on the TSX Venture Exchange under the ticker symbol of "EUU".

In addition, Tournigan has entered into a technical services agreement with AREVA whereby the French company will perform a work program comprising metallurgical and environmental test work to be part of the Kuriskova feasibility study.

The Kuriskova property consists of 32 square kilometres of mineral licenses situated approximately 10 km northwest of the city of Kosice, a regional industrial centre in Slovakia.

Under the terms of the Mawson deal, Tournigan will gain the rights, titles, and interests in seven Uranium exploration properties in Sweden and Finland.

As consideration, on February 29, Tournigan will issue 53.63 million common shares to Mawson, and Mawson will distribute the Tournigan shares on a pro rata basis to its shareholders. Until then, Mawson has agreed not to exercise the voting rights attaching to the Tournigan shares, the company said.

"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," said Tournigan president and CEO, Dorian L. Nicol.

"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."

In Sweden, Tournigan will now hold the Hotagen district properties, comprising four exploration claims covering 6,693 hectares in the west-central part of the country. To date, 155 shallow diamond drill holes have been completed on three prospects, with best results including 56 metres grading 0.1% Uranium.

New targets have been identified up to 1 kilometre along strike from the Klappibacken resource, Tournigan said, with the company planning to continue exploration in the district through drill testing.

Meanwhile, located in northwest Sweden, Tournigan will acquire the 1,524-hectare Duobblon project, which as of February 2008, had a resource estimate of 13.8 million tonnes averaging 0.029% Uranium, for 8.75 million pounds of inferred Uranium. Tournigan intends to conduct further drilling to upgrade confidence in the resource and test for possibilities of expansion.

The Kapell project, also part of the transaction, is located in central Sweden, covers 4,379 hectares, and includes a 15-kilometre trend. To date, three targets have been identified on the property, including the Aviken target, where drill tests have intersected 2.65 metres at 1.54% Uranium equivalent.

Tournigan will also acquire the Aronsjo project in Sweden, an early stage property with licenses covering 1,844 hectares.

In Finland, Tournigan will acquire the Nuottijarvi project in north-central Finland, which covers about 96 hectares. A technical report from August 2010 estimates that the property has 2.0 million tonnes averaging 0.074% Uranium, for 3.27 million pounds of Uranium in inferred resources.

Also in Finland, Tournigan will acquire the Riutta project, in the southeastern portion of the country, which covers 790.2 hectares. A total of 65 holes, totaling 6,275 metres have been drilled to date at the asset, with best results of 11.3 metres grading 0.68% Uranium, including 3.7 metres at 1.53% Uranium, 3.6 metres at 1.1% Uranium, 0.35 metres at 9.79% Uranium, and one metre at 0.35% Uranium.

The third Finnish property that Tournigan will acquire is the newly discovered Asento project, which comprises 37 exploration licenses that cover 3,556.6 hectares in north-central Finland.

Monday morning, Tournigan shares were up 5.5 percent to $0.09.

The study gave Kuriskova a pre-tax internal rate of return of 30.8 percent, a 1.9-year payback period, and a net present value of $277 million at an eight percent discount rate.

Tournigan also said the indicated resource at the Slovakia uranium deposit has increased 94 percent to 28.5 million pounds since a 2009 preliminary economic assessment (PEA) and uranium grade was up 62 percent from the earlier PEA to 0.408% uranium concentrate.

Based on estimated indicated resources, mineral reserves were estimated at 2.5 million tonnes at an average grade of 0.346% uranium, which was determined to provide an underground mining rate of about 210,000 tonnes of ore per year for around 13 years.

Life-of-mine uranium concentrate production was estimated at 20.9 million pounds, or 9,500 tonnes.

Tournigan's president and chief executive officer, Dorian L. Nicol, said: "We are very pleased with these results. They demonstrate that the Kuriskova project has the potential to be among the lowest cost uranium producers in the world.

"The PFS not only illustrates the robust economics of the Kuriskova project but also the competitive advantages it has over other uranium projects as a result of its high-grade resource and relatively low operating cost estimates."

Initial capital costs for Tournigan's Kuriskova  project are seen at $225 million, which includes owner's costs and a contingency of $31 million. During the 13-year life of mine, there will be sustaining capital requirements of about $71 million, the company said.

Tournigan also indicated a 92 percent uranium recovery rate and 26 percent-lower life of mine operating costs.

The PFS estimates $22.98 per pound uranium life-of-mine operating costs and $16.68 per pound costs during the first four years of production.

Looking ahead, Nicol continued: "Our next step is, working with our strategic partner AREVA, to begin a feasibility study and environmental assessment study that will continue to define project parameters to a higher degree of confidence and allow the permitting of the project to begin.

"The development of the Kuriskova uranium project could provide Slovakia with a secure source of uranium for approximately 30 years at its current consumption rate."

AREVA SA (EPA:AREVA) is a French nuclear energy powerhouse that is partnering with Tournigan. In December, Tournigan announced a number of transactions in an effort to expand its uranium presence in Europe, including the formation of an alliance with AREVA  and the purchase of seven uranium properties in Finland and Sweden from Mawson Resources (TSE:MAW).

Tournigan said that according to the PFS for Kuriskova, the project can be best developed as an underground mine/processing facility, with a very small surface footprint using the best available technologies in its mining and processing operations.

The uranium explorer also said that there were multiple exploration targets within the Kuriskova license area, with the potential to expand the resource base and extend project life.

The PFS was prepared by independent consultant Tetra Tech.

Tournigan said it was planning an exploration program to continue testing multiple uranium exploration targets within the Kuriskova license area.

Exploration success would likely add resources that could be accessed from the planned Kuriskova infrastructure, and Tournigan said it will conduct further step-out exploration drilling where the high-grade mineralization is open along strike and at depth.

Tournigan is a uranium exploration and development company. Its flagship asset is the Kuriskova uranium deposit in Slovakia, which is 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.

Tournigan Energy (CVE:TVC) announced Wednesday it has taken another step forward in expanding its Uraniumpresence in Europe, with the signing of a binding agreement to purchase seven Uranium properties in Finland and Sweden from Mawson Resources (TSE:MAW).

Under the terms of the agreement, which supersedes the letter of intent it had signed earlier this month, Tournigan will issue just under 53.64 million shares of its common stock to Mawson on a pro rata basis by April 30, 2012.

In return, Tournigan will receive Mawson's right, title, and interest in a total of seven Uranium exploration projects throughout Sweden and Finland, including the Nuottijarvi, Riutta, and Asento properties in Finland, and the Hotagen, Duobblon, Kapell, and Aronsjo properties in Sweden.

Tournigan said the deal remains subject to the conditions under the letter of intent, including the spin out of Mawson's Peruvian assets, and the overall reorganization of its business.

Separately, Tournigan has already received approval from the TSX-Venture Exchange to close a private placement financing with an affiliate of French nuclear energy powerhouse Areva SA (EPA:AREVA), one of Mawson's largest shareholders. It expects to close the private placement in early January 2012, concurrent with its entering into a technical services agreement with Areva.

The technical services agreement will see Areva conduct a work program on Tournigan's Kuriskova Uranium property, located in east-central Slovakia. The program, which will consist of metallurgical and environmental test work, will be used for a feasibility study for the property, expected for completion in early 2012.

Tournigan also said it plans to change its name to European Uranium Resources, and will complete a consolidation of its shares, on a one new for five old basis. The change will begin once the Areva alliance and Mawson acquisitions have been completed.

On distribution of the shares, Mawson shareholders shall own approximately 20.5 percent of the restructured Tournigan, which will continue as European Uranium Resources.

At a cutoff grade of 0.06% uranium, Novoveska Huta had 3.75 million pounds of uranium in measured and indicated resources contained in 1.662 million tonnes grading 0.102% uranium, and an additional 12.738 million pounds of uranium in inferred resources, contained in 4.689 million tonnes grading 0.123% uranium.

Tournigan's president and CEO, Dorian L. Nicol, said: "We are excited to add these pounds of uranium to our 43-101 compliant resource inventory so close to Tournigan's flagship Kuriskova project. We look forward to growing and advancing both properties."

The Novoveska Huta uranium deposit is located near the town of Spisska Nova Ves, about 50 kilometres northwest of Tournigan's high-grade Kuriskova uranium deposit.

Tournigan's objective at Novoveska Huta was to verify historic data, which was collected during Slovakia's communist period, and to find additional resources.

Novoveska Huta's historical, non-NI 43-101 compliant P & Z3 resource estimate - Slovak resource classifications roughly analogous to Inferred - prepared by former operator Uranpres in 2005, reported 19,970,000 pounds of uranium contained in 12 million tonnes at an average grade of 0.075% uranium, at a cutoff grade of 0.015%.

Historical data at Novoveska Huta, which were compiled during Slovakia's communist period, comprise 106 surface drill holes (of which 38 were used in this resource estimate), 371 underground holes and 5.5 kilometres of underground development from which 2,081 radiometric channel samples were taken.

The western part of the deposit (currently comprising the measured and indicated resource) was known before the company acquired the property, but the data base had not been verified and underground sampling data had not been evaluated.

Tournigan said its work in the western part of the deposit verified the historical data. In addition, Tournigan included underground channel sample data in the new resource estimate.

In addition to historical drilling and underground sampling data that could be verified, the latest Novoveska Huta resource estimate incorporates 17 diamond drill holes totaling 8,897 metres drilled by Tournigan between 2006 and 2011.

Tournigan said that exploration drilling in the eastern part of the deposit has confirmed the extension of mineralization to the east and increased the exploration potential of the deposit. The eastern block is at a higher grade than the western block and remains open to the east and north, the company said.

At Tournigan's flagship Kuriskova deposit, the most recent estimate comprises an indicated resource of 28.5 million pounds uranium at a grade of 0.555% contained in 2.3 million tonnes, and an additional inferred resource of 12.7 million pounds uranium at a grade of 0.185% contained in 3.1 million tonnes, both at a cutoff of 0.05% uranium. A pre-feasibility study for Kuriskova is due by early 2012, Tournigan said.

Shares of the company were flat at 10 cents early Monday afternoon.

The property consists of 32 square kilometres of mineral claims situated in a forest roughly 13 kilometres northwest of the city of Kosice, a regional industrial centre in East-Central Slovakia.

The study, expected to wrap-up in December this year, is being conducted by California-based Tetra Tech (NASDAQ: TTEK).

Tetra Tech, which offers engineering and consulting services, will construct a proposed mine plan based on the latest resource estimate.

In April, a resource report showed 28.5 million pounds of indicated uranium, grading 0.555% contained in 2.3 million tonnes, plus an extra 12.7 million pounds at 0.185% uranium in the inferred category for 3.1 million contained tonnes.

Field work and data interpretation necessary for the prefeasibility study’s completion is on schedule and in progress, the company said.

Currently at the property, the third of five geotechnical holes is being drilled, with completion of the geotechnical drilling program expected by mid-September, while hydrogeological holes have been drilled with results being interpreted.

Phase one metallurgical test work has been completed, and has confirmed uranium and molybdenum leach recoveries of between 93% and 94% and 90% to 93%, respectively.

Meanwhile, phase two is ongoing and will focus on the refinement of the uranium and molybdenum precipitation parameters.

As well as advancing its prefeasibility study, Vancouver-based Tournigan said it continues with surface exploration work within the Kuriskova exploration licenses, as well as on the company’s other claims in Slovakia.

"This is expected to lead to drill targets which the company will begin testing after the Kuriskova geotechnical drilling is completed,” the company said in a statement.

Tetra Tech is also in the process of preparing an NI 43-101 resource estimate for the Novoveska Huta uranium deposit in Slovakia, which is expected to be released by September’s end.

Overall, the uranium oxide (U3O8) contained in the deposit has increased by 3.1 million pounds, as the new estimate also shows a lower inferred resource from the previous report.

According to the updated NI 43-101 compliant study, the deposit hosts 28.5 million pounds  at 0.555% U3O8 in the indicated category, plus an additional 12.7 million pounds at 0.185% U3O8 in the inferred category.

The last resource estimate from February 2010 suggested 20.5 million pounds of uranium oxide at 0.571% U3O8 in the indicated category, and 17.5 million pounds at 0.228% U3O8 in the inferred category.

"We are confident that this Indicated Resource is of sufficient size and grade to be the basis of a Reserve for the Kuriskova Prefeasibility Study, which we expect to complete around the end of this year," said president and CEO Dorian L. Nicol.

Indeed, the increase in the the resource is expected to have a positive effect on the overall project economics.

"We emphasize that we believe there remains significant exploration potential to increase the size of the Kuriskova resource both immediately adjacent to the current resource and in the surrounding exploration licence," added Nicol.

In addition, the company also said that the project shows a significant amount of molybdenum within the uranium resource, which could represent a by-product credit, and add more value.

The latest estimate includes the results of 18 diamond drill holes completed since the February 2010 report, totaling 4,548 metres.

Overall, the uranium oxide (U3O8) contained in the deposit has increased by 3.1 million pounds, as the new estimate also shows a lower inferred resource from the previous report.

According to the updated NI 43-101 compliant study, the deposit hosts 28.5 million pounds  at 0.555% U3O8 in the indicated category, plus an additional 12.7 million pounds at 0.185% U3O8 in the inferred category.

The last resource estimate from February 2010 suggested 20.5 million pounds of uranium oxide at 0.571% U3O8 in the indicated category, and 17.5 million pounds at 0.228% U3O8 in the inferred category.

"We are confident that this Indicated Resource is of sufficient size and grade to be the basis of a Reserve for the Kuriskova Prefeasibility Study, which we expect to complete around the end of this year," said president and CEO Dorian L. Nicol.

Indeed, the increase in the the resource is expected to have a positive effect on the overall project economics.

"We emphasize that we believe there remains significant exploration potential to increase the size of the Kuriskova resource both immediately adjacent to the current resource and in the surrounding exploration licence," added Nicol.

In addition, the company also said that the project shows a significant amount of molybdenum within the uranium resource, which could represent a by-product credit, and add more value.

The latest estimate includes the results of 18 diamond drill holes completed since the February 2010 report, totaling 4,548 metres.

Highlights from the two holes at the Main Zone South of the deposit include an intersection of 0.7 metres at 0.335% equivalent uranium oxide in hole LE-K-65.

Also, hole LE-K-66 intersected 1.6 metres at 0.688% equivalent uranium oxide, including 0.2 metres at 2.264% equivalent uranium oxide and 0.7 metres at 0.783% equivalent uranium oxide.

"We are pleased with the higher grade results of these holes," said Tournigan's CEO, Dorian L. Nicol.

"We expect that this will lead to an increase in the average grade of the deposit and a conversion of inferred resource to indicated," he added.

To date, three holes have been drilled at the Kuriskova deposit for a total of 1,450 metres. The drilling is part of an initial 4,500 metre program.

Tournigan also said the resource model for the Kuriskova deposit will be updated and will be included in the pre-feasibility study for the project due out later this month or in early April.

The news sent the company's share price up by more than 10% on Wednesday morning to trade at $0.41 as of 10:30am EST.
Hole LE-K-64, the first infill hole of the current season, returned 2.6 metres at 0.793% equivalent uranium oxide (eU3O8), including  0.7 metres at 2.096% eU3O8.

The company said the hole intersected "significantly higher grade" compared to the current inferred resource grade in the area intersected by the hole of 0.133% U3O8.

"This bodes well for a potential increase in the grade of Main Zone South during the ongoing resource update," said president and CEO Dorian L. Nicol.

Two more holes will be drilled from the same drill pad this month to further infill this portion of the resource, Tournigan said, with the aim of upgrading it to the indicated category. An updated resource estimate is expected in April.

The one hole completed to date on the site represents 481 metres of an initial 4,500 metre drilling program, designed to expand and upgrade uranium resources at the Kuriskova project.

In addition to Kuriskova, Tournigan has several other exploration targets along the Slovakian uranium belt.

The company, through Hazen Research of Colorado, has been studying the use of alkaline leaching on different ore zones with the project. Today’s results pertained to Zone 45, where composite grading 0.404% U308 and 0.278% molybdenum was tested.

The results were highly encouraging, with the test results indicating recoveries of 94% and 98% respectively for uranium and molybdenum. The test work performed used the same alkaline-pressure oxidation leaching parameters used on the Kuriskova Main Zone.

The Kuriskova property is located 10 kilometres north west of the city of Kosice, in east-central Slovakia, and lies close to the main paved road between Kosice and Spisska Nova Ves. The property is readily accessed through a series of minor roads and four wheel drive trails that traverse the mineralised zones.

In 2010, a NI 43-101 compliant resource calculated, considering a 0.05% uranium oxide (U3O8) cut off, 20.5 million pounds of U3O8 indicated resource at an average grade of 0.57% U3O8. In addition, the report showed 17.5 million pounds U3O8 inferred resource at an average grade of 0.23% U3O8.

A preliminary economic assessment (PEA) released in 2009 estimated a mine life of the project to be 11 years, averaging 2.4 million pounds of U3O8 production over the first five years, and averaging 1.4 million pounds over the entire mine life. The PEA considered uranium recovery at 90%, and a uranium price of US$65 per pound.

The report estimated the project would require an initial capital investment of US$168 million, and would have operating costs of US$17/lb U3O8 for the first five years, and US$32/lb over the average life of the mine.

 This generated a net present value, considering a 12% discount rate, of US$135 million, with a base case pre-tax internal rate of return (IRR) of 35.8%.

“The metallurgical program at Hazen will continue in 2011 as Tournigan progresses in defining the process plant flow sheet for the Prefeasibility Study. Other aspects of the Prefeasibility Study, including resource drilling, are currently being planned and will recommence shortly,” the company added.

“The program has been successful in showing a significant increase in the extent of Zone 45 uranium mineralization,” Tournigan stated today.

Tournigan was specifically referring to an more than doubling in the strike length of Zone 45 to 165 meters.  Drill highlights included 3.4 meters averaging 0.69% equivalent U308 from approximately 165 meters in drill hole LE-K-50 and 3.5 meters averaging 0.84% equivalent U308 from approximately 149 meters in drill hole LE-K-57.

Kuriskova already hosts a 43-101 compliant indicated resource of 1.6 million tonnes at 0.571% U3O8 and inferred resource of 3.5 million tonnes at 0.228% U3O8. Included within the total resource is approximately 500,000 pounds of uranium at an average grade of 0.677% U3O8 in Zone 45.  The 12 drill holes reported on today are not included in the current resource estimate.

Drilling has now moved to test extensions of the Kuriskova Main Zone.

Tournigan is a uranium exploration and development company, with a portfolio of highly prospective properties in Eastern Europe. The company has a market capitalisation of C$23.3 million, with no debt, and following the recent private placement, has around C$6.4 million in cash and approximately C$6.5 million in working capital. The company’s key asset is the 100% owned Kuriskova uranium property located in central Slovakia, which consists of 32 square kilometres of mineral licenses.

The Kuriskova property is located 10 kilometres north west of the city of Kosice, in east-central Slovakia, and lies close to the main paved road between Kosice and Spisska Nova Ves. The property is readily accessed through a series of minor roads and four wheel drive trails that traverse the mineralised zones.

Earlier this year, a NI 43-101 compliant resource update on the property was released, building on the already strong numbers seen in the previous estimate form early 2009. The report showed, considering a 0.05% uranium oxide (U3O8) cut off, 20.5 million pounds of U3O8 indicated resource, at an average grade of 0.57% U3O8. In addition, the report showed 17.5 million pounds U3O8 inferred resource at an average grade of 0.23% U3O8. This represents an increase of around 5.9 million pounds of U3O8 to the original indicated resource, and shows an increase in the average grade of the indicated resource from 0.56% to 0.57% U3O8.

The report also included the discovery of a new zone of high grade uranium mineralisation, which showed an average grade of 0.68% U3O8. This zone remains open along strike and has the potential to add significant amounts of high grade uranium mineralisation with further drilling.

A preliminary economic assessment of the project’s potential, conducted in 2009, also shows a very positive outlook for the project, particularly following Tournigan’s success in raising the necessary finance to advance the Kuriskova project. The report estimated the mine life of the project to be 11 years, averaging 2.4 million pounds of U3O8 production over the first five years, and averaging 1.4 million pounds over the entire mine life. This considered uranium recovery at 90%, and a uranium price of US$65 per pound (/lb).

The report estimated the project would need an initial capital investment of US$168 million, and would have operating costs of US$17/lb U3O8 for the first five years, and US$32/lb over the average life of the mine. This showed a net present value, considering a 12% discount rate, of US$135 million, with a base case internal rate of return (IRR) of 35.8% pre-tax. Dorian Nicol, Tournigan's President and Chief Executive Officer, also noted at the time “among the encouraging conclusions of the preliminary assessment are project payback within approximately one third of the projected mine life and production costs substantially below projected long term sales prices”.

These latest results from the pre-feasibility study metallurgical testing, confirmed the estimated recovery rates in the preliminary economic assessment, showing high levels of both uranium and molybdenum can be recovered using conventional milling methods. Specifically, the test indicated that over 90% of the uranium and 85% of the molybdenum can be recovered by pressure oxidation, using a whole ore leach process in two hours, utilising an alkaline process at a grind size of P80 - 300 mesh and temperature of 200 degrees centigrade. Dorian Nicol said of the results, “these encouraging test results show that an alkaline leaching process using benign carbonate reagents (not sulphuric acid) can effectively recover both uranium and molybdenum from representative composite samples".

The update also outlines some of Tournigan’s upcoming plans, with additional test work still being undertaken, to optimise the process parameters (including grind size, temperature, pressure oxidation time, carbonate concentration) for the recovery of uranium and molybdenum, as part of the ongoing test program for a pre-feasibility study. The company report other aspects of the pre-feasibility study also continue to progress well, noting a 4,500 meter drill program has just begun at Kuriskova, focusing on the high grade Zone 45 area.

This ongoing work for the pre-feasibility study is set to bring continuing newsflow and updates form Tournigan over the next few months, helping to develop a fuller picture of the Kuriskova project’s value. The possibility of expanding the current know resource even further, through additional exploration, leaves a lot of upside potential at the project, both in terms of higher grades and additional mineralised zones. Following the recent success of the company’s C$3 million private placement, it has improved even further its financial standing to accomplish this.