www.toroenergy.com.au
Toro Energy (ASX: TOE) is well placed to operate one of the first new Western Australian uranium mines. The company is also an explorer in Western Australia, the Northern Territory, South Australia and in the African country of Namibia.
The Wiluna Project is at an advanced stage in government assessment and approval, with Toro planning to commit to construction late next year for first production in 2013. The project hosts two shallow (generally less than 10m deep) calcrete deposits with a Measured, Indicated and Inferred resource of 24.4Mlbs of contained Uranium (U3O8) in the current project approved.
Toro Energy signs LOI with OZ Minerals to terminate Mt Woods access agreement
Toro Energy (ASX: TOE) has executed of a letter of intent with OZ Minerals (ASX: OZL) for the termination of Toro’s tenements access agreement over the Mt Woods Project located in South Australia.
In consideration for the termination of the agreement and related novation deed, Toro will receive a $3.75 million cash offer from OZ Minerals.
The agreement granted Toro the right to explore and, under certain conditions, mine economic uranium discoveries over EL4025, EL4132, EL4283 and EL4390. In addition, it entitled Toro access to all exploration data and information collected by OZ Minerals on the tenements.
No potentially economic uranium results have been reported by OZ Minerals from the Mt Woods Project, despite conducting extensive drilling campaigns. Toro has also conducted a review of the exploration data and found no indication that further exploration would improve the uranium prospects at Mt Woods.
Toro recently wrapped up the exploration program at the Theseus project in Western Australia for this season, releasing some very promising results pointing to a large uranium mineralised system with the right ingredients for in-situ recovery.The potential size of the system is also very encouraging for Toro.
The company has now outlined an exploration target for Theseus of 20 to 40 million tonnes at 400 to 500ppm uranium, for 10,000 to 20,000 tonnes of uranium, (or 22 to 44 million pounds).
Toro is already putting in place a plan to test the target, which will be evaluated by mud rotary drilling during 2012, following the results of studies of disequilibrium and bottle roll leach testing.
Toro had a healthy A$18.5 millon cash balance at the end of the September quarter.
