Toro Energy Limited - Completes Acquisition Of Dawson-Hinkler Well Project From U3O8 Limited
13.12.2010 | ABN Newswire
09:41 AEST Dec 13, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - Toro Energy Limited (ASX: TOE) (PINK: TOEYF) (\'Toro\') has executed a Definitive Agreement with U3O8 Limited (ASX: UTO) (\'U3O8\') to acquire 100% of the Dawson-Hinkler Well Uranium Project near Wiluna in Western Australia for a consideration of A$6.2 million.
The completion of this acquisition adds significant additional resources close to Toro\'s advanced Wiluna Uranium Project currently being assessed for approval by the Western Australian and Federal Governments. The addition increases Toro\'s total Wiluna region uranium resource base by 25% to more than 30 million pounds of uranium oxide.
The Dawson-Hinkler Well Uranium Project comprises tenements M53/1092(a), E53/1254, E53/1169 and E53/1136, approximately 15 kilometres west of Toro\'s Centipede deposit (one of two comprising the Wiluna Project).
On completion of the tenement transfers, Toro\'s total uranium resource base in the area, prepared in accordance with the JORC code, will be:
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ProjectName Category Resource Grade Contained Contained
Tonnes U3O8 U3O8,tonnes U3O8,mlb
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Centipede Measured 0.3 588 177 0.39
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Centipede Indicated 7.68 619 4,754 10.48
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Centipede Inferred 1.69 251 424 0.94
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Lake Way Inferred 10.53 543 5,714 12.60
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Total Wiluna
Project 20.21 548 11,070 24.40
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Dawson-
Hinkler Well Inferred 9.50 293 2,800 6.20
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Total 29.71 467 13,870 30.60
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Prepared at a 200ppm U3O8 cut-off grade
The commercial terms of the Definitive Agreement remain unchanged from the Memorandum of Understanding announced by Toro on 19 October 2010.
In 2011, Toro will initiate drill programs and other work at Dawson-Hinkler in order to model the deposit and define the mineral resource in accordance with Toro\'s established methodology. Toro will also conduct preliminary test work to better define properties such as rock density and leach characteristics.
While much work remains to be undertaken at Dawson-Hinkler, Toro believes this agreement is an exciting and important enhancement of its position in the Wiluna region and is in line with the Company\'s stated aim of resource consolidation.
About Toro Energy Limited:
Toro Energy Limited (ASX:TOE) (PINK:TOEYF) is a modern Australian uranium company with progressive project development, acquisition and growth. The company is based in Adelaide, South Australia with a project office in Perth, Western Australia.
Toro's flagship and wholly-owned Wiluna uranium project (includes existing mining lease) is 30 kilometres southeast of Wiluna in Central Western Australia.
Wiluna contains two shallow calcrete deposits, Lake Way and Centipede, with prefeasibility and optimisation studies completed and a definitive feasibility study underway. Toro has commenced the Approvals process targeting the Company's first uranium production by late 2012/early 2013.
Toro has three other exploration and development projects in Western Australia, and owns uranium assets in Northern Territory, South Australia and in Namibia, Africa. Toro is well funded with a supportive major shareholder in OZ Minerals.
Contact:
Greg Hall
Toro Energy Limited
Tel: +61-8-8132-5600
http://www.toroenergy.com.au
