Vancouver, British Columbia (FSCwire) - European Uranium Resources Ltd. (EUU: TSX-V; TGPN: Frankfurt) (the “Company”) has filed for a new exploration license overprinting the Kuriskova deposit area, Slovakia. The current exploration license on the project has been valid for 10 years and will expire April 19, 2015. The Slovak Ministry of the Environment (the “Ministry”), which administers exploration licenses, issued a statement on April 16 that it will deny the Company’s application for a further extension. The Company expects to receive official notification of this decision in due course. The reasons given for the denial were that the Ministry was reluctant to grant a further extension to the 10 years previously granted, notwithstanding that the Geology Act would allow for a further extension in order to complete work and that legal advice to the Joint Venture was that there was no legal reason for the extension not to be granted. In addition, the Ministry concluded that the Company’s intention to explore for rare earth elements in the license area qualifies as a new exploration project, not as work necessary for completing the exploration which has been ongoing. Together with joint venture partner Forte Energy NL, EUU has been seeking to enhance the value of the Kuriskova project by evaluating the possibility of adding to the byproduct credits of the Kuriskova uranium resource, including the potential of rare earth element credits. Rare earth elements (REE) are classed as critical and strategic minerals by the European Union. The presence of rare earth minerals in the Kuriskova mineralization has been documented by earlier exploration, but quantities and grade of potential REE mineralization have not been estimated. To do so would require re-assay of select drill core and possibly additional drilling.
In accordance with Ministry regulations and with Ministry statements, the Slovak operating entity has now applied for a new exploration license covering 14.73 square kilometres, including the area of the currently defined resource. It is expected that this license will be granted in the normal course of business for an initial 4-year period with the right for two additional extensions of 4 years and 2 years, for a total of 10 years. The grant of this new exploration license will allow work to continue on the Kuriskova project.
The Company has invested over 25 million Euros in Slovakia, including completion of a prefeasibility study on the Kuriskova deposit. The Company will take all measures necessary to protect its interests in Slovakia.