Toro Energys Theseus Project Turns Into Major Uranium Discovery

Published on Sunday August 21 2011

Toro Energy (ASX: TOE) string of high grade results has confirmed the Theseus Prospect in Western Australia to be a large uranium mineralised system covering over 7.5 square kilometres.

To continue to unlock the significance of this discovery, Toro will now ramp up drilling targeting the definition of higher grade uranium zones.

Drilling highlights include:

- 4.46 metres at 837 ppm eU3O8 from 98.11 metres, including 1.54 metres at 1909ppm eU3O8;

- 9.02 metres at 619 ppm eU3O8 from 100.38 metres, including 1.46 metres at 2204ppm eU3O8; and

- 3.54 metres at 378 ppm eU3O8 from 105.63 metres, including 0.44 metres at 1469ppm eU3O8.

An air-core drilling campaign kicked off at the prospect earlier in the month, with 19 of the planned 60 holes having been drilled and gamma logged so far to total depths ranging from 103 metres to 210 metres, passing through a basement interface at roughly 125 metres.

What is so important for the discovery, is that twelve of the nineteen holes drilled so far report uranium intersections with grades above 100ppm eU3O8, and widths greater than 0.5 metres - pointing to an extensive system.

Greg Hall, managing director, added “We are excited and encouraged by the size, extent and grade of uranium mineralisation so far intersected.

"Toro’s systematic approach to defining the location of the higher grade uranium mineralisation in Theseus is key to ensuring the system is well defined before more closely spaced drilling is used to define a resource prepared in accordance with the JORC code.”

Importantly - the minimum extent of the system is now 5 kilometres by 1.5 kilometres, and open in all directions.

Geologically, Theseus is situated within an interpreted northerly trending palaeovalley broadly defined by previous drilling.

The prospect is part of Toro's wholly owned flagship Lake Mackay Project, located 650 kilometres west of Alice Springs but inside the Western Australia border.

Toro is also developing the advanced Wiluna uranium project which is further west in the state and scheduled for first production from late in 2013, pending government approvals.

Potential In-Situ Recovery

Toro has outlined the lithological and mineralogical association at Theseus saying that it is very similar to the 4 Mile and Beverley uranium deposits in South Australia which are currently being developed or are in production.

Both uranium deposits are amenable to In Situ Recovery (ISR) where slightly acidified water is pumped to depths of 150 metres through confined sand layers, extracting and transporting uranium to a surface processing plant.

The company added that similarities can also be drawn to operating ISR mines in the US and Kazakhstan where uranium mineralisation is mined by ISR techniques.

The geological environment and the consistency of the mineralised zones at Theseus, albeit at an early stage, supports the possibility of ISR extraction methods as a potential development scenario - although the development scenarios and economics remain undefined at this time.

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