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Advanced Projects

The Napperby Project

The Napperby project in the Northern Territory, 160 km northwest of Alice Springs, covers two tenements and the historic ‘calcrete style’ uranium prospect, New Well, comprising an extensive, near-surface, consistent mineralised zone that is relatively low grade, but is close to infrastructure. Toro Energy entered an option agreement with Deep Yellow to purchase the deposit within three years on a per pound basis. Toro has undertaken two phases of resource definition and has increased the contained tonnes of uranium on a JORC basis. Toro is currently concluding a scoping study aimed at identifying the key economic factors toward development. Given the favourable political jurisdiction in which this resource lies, it is Toro’s intention to rapidly advance this project to an operating mine status.

Wiluna

Following the merger with Nova Energy, Toro Energy now controls the 19.8 million pound U3O8 inferred JORC resource at the development-ready Lake Way / Centipede project near Wiluna. The Wiluna project comprises the historic Lake Way and Centipede deposits in Western Australia, which are shallow calcrete-style uranium deposits. Toro Energy is concluding a pre-feasibility study to address in detail the key economic factors and the likely mining and processing methods.

Exploration Projects

Coober Pedy, SA                 
Exploration - South Australia (IOCG - Uranium base targets)     
The Coober Pedy project is located in the Gawler Craton along a major northwest-trending corridor of world-class iron oxide copper gold (IOCG) deposits. The corridor hosts the Olympic Dam deposit, the largest uranium deposit in the world, and the more recently commissioned Prominent Hill copper-gold deposit. It also hosts smaller deposits at Cairn Hill and Black Hills. Both Prominent Hill and Olympic Dam are located at the intersection of the corridor and north east trending cross fault zones. Similar lineament trends have been identified within the Coober Pedy tenement. The project is covered by about 100 to 150 m of Palaeozoic sediments and targets are defined by magnetic and density data. In 2007 Toro Energy successfully drilled four diamond holes to test several targets. Drill results were encouraging, with IOCG-style alteration evident and results such as 1m@118ppmU3O8.

Mt Woods, SA                 
Exploration - South Australia (IOCG - Uranium base targets)
The Mount Woods Project comprises Uranium Access Agreements over four OZ Minerals tenements and one Minotaur tenement. The Prominent Hill Cu-Au mine (officially opened in May 2009) lies within the project, with its enclosing Mining Lease excluded from the Agreement. OZ Minerals estimate a total of 90,000t copper and 65,000 oz gold to be extracted from Prominenet Hill and sold as concentrate overseas. The takeover in 2009 of OZ by China Minmetals Non Ferrous Metals Co.(MinMetals) will mean that the ownership and continued exploration over these licences will be carried out by Minmetals whilst the Prominent Hill mine will remain in the hands of OZ Minerals. These tenements have substantial potential for additional discoveries of IOCG-type deposits. OZ carried out regional exploration drilling programs during 2009 targetting an extensive set of large regional IOCG targets. These drilling programs provide Toro with information including gamma and lithological information and the opportunity to evaluate the results for overall uranium prospectivity. In addition, the project has potential for sandstone (redox)-hosted uranium in the Neoproterozoic and Phanerozoic basins and palaeochannels onlapping the Mount Woods Inlier.

Nonning, SA                 
Exploration - South Australia (IOCG - Uranium base targets)     
The Nonning project on the southern margin of the Gawler Range Volcanic Province is focussed on a new interpretation of palaeodrainage systems emanating from inliers of Gawler Range Volcanics and Hiltaba Granite; the likely basement source rocks for uranium. The palaeodrainage system is poorly-defined and not drill tested. The volcanics and granites themselves have potential for IOCG-U deposits. The project also encompasses highly-prospective Palaeoproterozoic metamorphics under the volcanics, which host the nearby Meninnie Dam basemetals deposit. Assessment continues by Menninnie Metals under a JV agreement with Minotaur Exploration. Gravity and IP survey data was acquired during late 2008 southwest of Nonning Homestead in an area totally concealed by ~20–50 metres of Cainozoic sediments.

Roxby - Acropolis, SA                 
Exploration - South Australia (IOCG - Uranium base targets)
The Roxby–Acropolis project area is known to host anomalous uranium associated with IOCG breccias at Acropolis south. It also lies in close proximity to the World-class Roxby Downs Cu-Au-U deposit. Exploration for uranium-dominant IOCG-style mineralisation remains a viable exploration strategy, despite the depth to basement. Given the very significant quantities of uranium in the basement at Olympic Dam, there is potential for its accumulation in favourable environments within the adjacent basement and cover sequences. Japan Oil, Gas and Metals National Corporation (JOGMEC) had an Exploration Agreement with both Toro and Minotaur to explore the Roxby-Acropolis project area, west and north of Olympic Dam for iron oxide copper-gold uranium mineralisation. JOGMEC recently withdrew from this agreement mainly due to uncertainty of land access within the Woomera Prohibited Area. Drilling carried out by Minotaur under the JOGMEC agreement intersected IOCG alteration within basement and minor uranium anomalies. An infill gravity survey is underway to refine the targets for another round of deep drilling.

Lake Frome, SA                 
Exploration - South Australia (Palaeochannels)
The Lake Frome Project area on the Curnamona Craton is masked by Cainozoic sediments that include the interpreted northward continuation of the Yarramba and Lake Charles Palaeochannel Systems. These palaeochannels host the Oban, Yarramba and Honeymoon uranium deposits, between 50 and 110 kilometres to the south. Historical drilling of these licences is sparse however minor uranium anomalism has been identified and indications are that target palaeochannels lie between 80-120m deep. The results of an airborne Electromagnetic survey scheduled to be carried out by Geoscience Australia later in 2009 will highlight palaeochannel locations and serve as a focus of exploratory drilling in 2010.

Radium Hill, SA                 
Exploration - South Australia (Palaeochannels)
Primary uranium mineralisation at the Radium Hill Mine, less than 5 km from the Toro’s tenement, was mined between 1954 and 1961 and produced approximately one million tonnes of davidite-bearing ore. EL2531 contains the same rock types as at the Radium Hill Mine, but beneath thin cover. The potential to locate further vein style deposits as well as hydrothermal uranium deposited within the graphitic metamorphics of the Willyama Block is considered high. In addition, areas of palaeodrainage at the headwaters of the Murray Basin are prospective for near-surface roll front (redox)-style uranium mineralisation. Exploration drilling for palaeochannel uranium carried out during 2009 failed to identify this style of mineralisation. Potential for basement sources remains and will be advanced further in 2010.

Amadeus, NT                 
Exploration - Western Australia & Northern Territory
The Amadeus Basin Project in the NT provides Toro Energy with exposure to a highly prospective region for roll-front and structure-controlled sandstone-hosted uranium deposits. The Amadeus Basin hosts the nearby Angela-Pamela deposits, 20 km south of Alice Springs, together with a number of smaller uranium occurrences. Toro Energy is about to embark on a drilling program aimed at testing the Angela redox model within the Waterhouse tenement. Toro has also rationalised it’s ground position in the basin via the relinquishment of low priority tenements and by lodging new applications over more prospective ground.

Lake Mackay, WA                 
Exploration - Western Australia & Northern Territory    
The Lake Mackay exploration licences cover 3000km² of unexplored ground in the Lake Mackay area in north-eastern Western Australia. A large, high-amplitude uranium channel radiometric anomaly is located over the southern part of Lake Mackay and is one of the target areas for exploration. Amadeus Basin sediments are present to the south of Lake Mackay and these overlie Mesoproterozoic basement further to the south. The Devonian-Carboniferous rocks are considered prospective for roll-front type deposits similar to those at Bigryli and Angela-Pamela in the Ngalia and Amadeus Basins respectively. The Mesoproterozoic basement has never been explored and comprises rocks of similar age and character to those which host the IOCG deposits of the Gawler Craton, including Olympic Dam. A reconnaissance soil and rockchip sampling program carried out in early 2009 provides a focus for aircore drilling to be carried out late 2009. Several deeper magnetic and gravity anomalies will be tested by diamond drilling also in late 2009.

Other NT & WA Projects                 
Exploration - Western Australia & Northern Territory
Toro Energy has applied for numerous exploration licences in the Alice Springs, Reynolds Range and Tanami regions since listing on the ASX. These regions are considered to have significant geological potential for hardrock (‘unconformity’ and ‘magmatic’), palaeochannel and calcrete style uranium at surface or under shallow (<200 m) sedimentary cover. Toro Energy will be advancing these projects as quickly as feasible and hope to begin exploration in early 2009.

Reynolds Range                 
Western Australia & Northern Territory
Toro Energy has acquired a significant tenement holding in the Reynolds Range region of central NT, which is considered to be highly prospective due to it’s likeness to the Frome Embayment in South Australia, having a highly-radiogenic uplift area of the Reynolds Range in the south and Tertiary outwash fans emanating to the north. Historic drilling has identified appropriate sedimentary facies and redox features to support the model. Toro recently flew close-spaced Tempest EM over some of the prospective covered areas and will be using this to generate targets for drilling in 2010. Meetings with traditional owners are planned for early 2010 and Toro is confident that agreements can be put in place soon after.

Tanami                 
Northern Territory
Toro Energy has applied for numerous exploration licences in the Tanami Desert region, within Aboriginal Freehold Land in the NT and Pastoral land in adjacent WA. This region comprises analogous geology and tectonics to the Alligator River region to the north, which hosts the world-class Ranger and Jabiluka uranium deposits. Historic exploration data indicates the correct attributes to host ‘unconformity style’ uranium mineralisation and there are numerous small shows in the area. Toro are advancing exploration agreements with traditional owners via their representative body and are confident that exploration will begin in 2010. Some tenements are advanced sufficiently that drilling may proceed immediately upon grant, while other require acquisition of airborne geophysical data. Toro are also in advanced discussions with another party to farm into their highly-prospective tenement package.

Namibia, Africa                 
Exploration - Namibia
In December 2006, Nova Energy (Namibia) [now a wholly-owned subsidiary of Toro Energy Limited] was granted three Exclusive Prospecting Licences ("EPLs") in Namibia for nuclear fuel and base and rare metal exploration. The licences cover areas considered to be prospective for primary Rossing-type mineralisation and superficial Langer Heinrich-type uranium mineralisation.

Gawib West                 
Exploration - Namibia
The Gawib West EPL3668 is located about 12km west of Paladin's Langer Heinrich deposit and covers part of the upper Tumas drainage. The Langer Heinrich channel is interpreted to have once flowed directly west into the upper reaches of the Tumas drainage system. The photograph shows the surface features in this area down-stream of the Langer Heinrich deposit. Initial drilling of the channel that drains downstream of Langer Heinrich was unsuccessful with a number of drill holes failing to penetrate to basement.

Tumas North                 
Exploration - Namibia
The Tumas North EPL3669 is located about 24km southwest of Swakopmund and covers part of the northern arm of the Tumas drainage system. The tenement contains bedrock alaskites and superficial calcretes, both of which have the potential to host uranium mineralisation. Initial reconnaissance and alpha cup sampling has been carried out over the Tumas North (EPL3669) tenement. Results of this survey and scintillometer data are being analysed.

Chungochoab                 
Exploration - Namibia
Chungochoab is a large EPL (3670) that covers a tract of land about 80km south-southeast of Swakopmund. Three anomalies are evident on airborne radiometric data. Two of these cover area underlain by calcrete and have been the subject of an alpha cup survey. The results show significant radon signatures over potential palaeochannel areas, which align with the more regional radiometric data. Drilling has been planned to test these anomalies in 2009.