(MENAFN - ProactiveInvestors - Australia) Toro Energy (ASX: TOE) has delivered the first uranium resource for its wholly owned Theseus deposit in Western Australia.
The Inferred resource, which was completed by Optiro Consultants, stands at 6.3 million tonnes at 493 parts per million (ppm) for 6.9 million pounds (3,100 tonnes) of U3O8 using a 200ppm cut-off.
Using a 1,000ppm cut-off the resource is 6.1 million tonnes at 491ppm for 6.6 million pounds (3,000 tonnes) of U3O8.
Toro has also updated its exploration target for the deposit to 28 to 35 million tonnes of ISR uranium at 450 to 520ppm U3O8 for 28 million pounds to 40 million pounds (12,600 to 18,200 tonnes) U3O8.
Importantly, the initial sizeable resource was achieved despite limited drilling, and wide drillhole spacing to ascertain mineralisation extent.
The geological understanding of Theseus has been advanced with development of a new, early stage geological model, indicating lateral extent and structural controls.
Greg Hall, managing director, commented: "Toro is greatly encouraged by the confirmation of an initial Inferred mineral resource and the revision to the exploration target range at Theseus.
"The next stage of drilling, planned for 2013, will be key to unlocking the full potential of this resource which has delivered high grade intersections geologically open in many directions.
"Key technical studies continue to highlight positive outcomes for a potential ISR uranium mine.
Although early days, the confirmation of an Inferred mineral resource at Theseus opens up the 'blue sky' of a new uranium province in Australia for Toro shareholders comparable to those in South Australia, Wyoming and Kazakhstan."
The revised exploration target is defined by Toro covering the areas with limited or no drilling, with confidence in geological and topographic continuity that indicates probable extensions to the areas defined in the Inferred resource.
The company is confident that future drilling can target the higher grade uranium (>1000ppm) redox interfaces that will lift the average grade of the Theseus Deposit.
Toro will also increase the overall footprint of the deposit through extension drilling.
Forward work plan
Toro's prime objectives for Theseus heading into 2013 are:
- Finalise disequilibrium studies on recovered core (Dec 2012);
- Core recovery from 12 to 20 holes " 2500 metres (2013);
- Combination of aircore/core samples to extend resource (2013); and
- Drill 5000 metres to test regional potential (2013).
Today's maiden resource is a milestone in the development of Theseus.
Theseus has potential to be Toro's second project in the medium term.
The Theseus Project is a highly prospective new target which has the potential to open up a new uranium province with significant regional-scale and ISR mining potential.