Toro Energy Limited (ASX:TOE) announces first exploration target range for Theseus uranium project in Western Australia

*The Exploration Target Range (ETR) is conceptual in nature and there has been insufficient exploration completed to define this material as a Mineral Resource.

There is no certainty that the further work referred to herein will result in the determination of a Mineral Resource.

This Exploration Target Range (ETR) will be evaluated by mud rotary drilling during 2012, following the results of studies of disequilibrium and bottle roll leach testing. Studies will focus on recovery characteristics and the potential to improve uranium grades from gamma data collected so far.

Following the highly successful Theseus 2011 drilling program, Toro has estimated the project’s ETR by using a compilation of individual drillhole downhole gamma, prompt fission neutron (PFN) and assay results. This information plus the exploration potential along extensions of the defined palaeovalley system at Theseus, forms the basis of the ETR.

Figure 1 (see link at the bottom of the release) highlights the higher-grade uranium intercepts expressed as grade thickness (GT) values from within the newly defined mineralised zone at Theseus. This mineralised zone, roughly 10km x 2km, is bounded within a palaeovalley system mapped using basement intercepts from drilling. Significantly, the mineralised zone is open to the northwest, east and to the southeast.

Background

Theseus was discovered by Toro during a grassroots regional aircore drilling program by the Company in 2009. Initial results highlighted the potential for sandstone hosted uranium mineralisation at Theseus. Drilling in 2011 has now confirmed the presence of significant uranium mineralisation. A total of 130 vertical mud rotary and aircore holes have now been drilled and downhole gamma logged at the project. Almost 50% of the holes (64 of 130, drilled at Theseus) report a gamma, assay or PFN result greater than 0.5m @ 100ppm U3O8. All Theseus drillhole location and drill intercept information is tabulated in Appendices 1 and 2 (see link at the bottom of the release).

The 2011 drilling program at Theseus has defined in detail, a small portion of the regional palaeovalley system broadly outlined by regional drilling in 2009 and 2010.

The upper interval of the palaeovalley fill is dominated by clay and is mostly oxidised. The lower section of the palaeovalley fill, between about 90m and 130m, comprises alternate layers of sand and clay that are variably oxidised and reduced. In the deepest sections where the palaeovalley is juxtaposed against basement, the sediments are mostly reduced, and locally carbonaceous, lignitic and pyritic.

Figure 2 (see link at the bottom of the release) shows three discrete palaeovalley systems that based on Toro’s experience of drilling in 2011 have the potential to be as prospective as Theseus. Each area reports anomalous intercepts at kilometre spacing worthy of follow up in 2012.

Uranium mineralisation is hosted within the variably oxidised sand-clay sequence and its distribution is concentrated at boundaries between reduced and oxidised sediments (“redox” boundaries). The thickest and highest grade mineralised intercepts are hosted within sands ranging from 1m to 6m thick, while thinner intercepts are localised at the upper and lower boundaries of sand units. This distribution is consistent with the classic “roll-front” style of mineralisation as shown on Figure 3 (see link at the bottom of the release).

A typical cross-section for the southern part of the project is shown in Figure 4 (see link at the bottom of the release) with mineralisation located towards the steeper eastern flank of the palaeovalley. Drill holes LM0045, LM0052 and LM0055 all report the tenor of mineralisation typically considered “oregrade” in ISR type operations in Australia and overseas. Drilling on the western flank of this palaeovalley failed to intersect significant uranium suggesting that mineralisation may be concentrated on the steeper flanks of the palaeovalley system, in this case on the eastern side.

Higher grade uranium is also noted on other cross sections associated with steep flanks to the palaeovalley.

Studies are underway that are designed to provide information on leaching parameters and uranium speciation. It is hoped that this information will be available by the end of this year. In conjunction with this work, disequilibrium studies are being carried out on samples to determine the gross magnitude and distribution of disequilibrium. Sampling of aircore chips has proven to be problematic given high water flows and fine sands being removed by the aircore drilling technique.

The main intersection logged with both natural gamma and PFN in LM0055 and shown in Figure 4 (see link at the bottom of the release) was reassessed by combining deconvolved data from two discrete gamma surveys and comparing directly to the PFN result. This intersection is now confirmed as:

1.56m @ 0.16% pU3O8 [0.25%GT] from 112.43m from the PFN compared to 4.28m @ 0.06% eU3O8 [0.25%GT] from 111.15m from down-hole gamma.

This comparison adds confidence in the use of deconvolved gamma data given the similar GT value for this drill-hole. A full program of PFN logging will be scheduled for next year.

Toro Managing Director, Mr Greg Hall said: “Theseus has to date been a major success story for Toro and one that is yet to be fully recognised by equities markets as a major grass roots uranium discovery. It is becoming clear that Theseus may only be one prospect within this new uranium province and the region has the potential for further major discoveries. Toro believes that the Exploration Target Range announced today is only a small indication of the significant potential of this region.”

For the complete Toro Energy Limited announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-TOE-185674.pdf

Greg Hall
Toro Energy Limited
Tel: +61-8-8132-5600
Email: [email protected]
http://www.toroenergy.com.au