Toro Energy Limited (ASX:TOE) is pleased to advise that an independent analysis of uranium samples from the Wiluna Uranium Project in Western Australia by the Australian Nuclear Science and Technology Organisation (ANSTO) has highlighted significant levels of positive disequilibrium in three of the Wiluna deposits.

Disequilibrium analysis is a lab based analytical technique that tests the accuracy of measuring uranium via a gamma probe compared to chemical assay.  The presence of disequilibrium can affect the interpretation of gamma measurements and subsequent eU3O8 estimates that result from gamma probe results.  A substantial portion of the published Mineral Resources for the Wiluna Project have been based on historic samples which estimated uranium content from the results of gamma data alone.

Disequilibrium of greater than 1.1 is considered by ANSTO to be "positive disequilibrium".

The consequence of ANSTO's findings is that the existing published Mineral Resources at the Wiluna Uranium Project could be significantly understated.

ANSTO undertook disequilibrium analysis on 40 half metre full core samples, from 22 sonic holes at the Lake Way, Millipede and Dawson Hinkler deposits collected during the 2013 drilling season.  Of the 40 samples tested by ANSTO, 27 returned positive disequilibrium results as shown in Figure 1.

ANSTO'S results suggest that the application of a disequilibrium factor of at least 1.2 may be appropriate to gamma results used to estimate existing Mineral Resources for the Wiluna Uranium Project, with the exception of the Lake Maitland deposit. Toro acquired the Lake Maitland project in November 2013, and its Mineral Resource estimate already includes the application of a disequilibrium factor of 1.18 to gamma results.  This factor was determined from previous positive disequilibrium results.

During 2013 and the first half of 2014, Toro undertook the most significant drilling campaign at the Wiluna Uranium Project since consolidation of the ownership of the six deposits.  A total of 2,074 air core and sonic drill holes for nearly 24,500 metres was drilled in this period. The purpose of the drilling campaigns was to provide further information on the continuity of uranium mineralization and facilitate Ore Reserve calculations as part of the project definitive feasibility study when that study is commenced.  Early indications from the 2014 drilling program geochemical and gamma results support the positive difference shown by the ANSTO results.

Toro will now evaluate the magnitude and extent of the positive disequilibrium, and assess how to incorporate the findings into the Mineral Resource estimation process.

MEDIA CONTACT:

Vanessa Guthrie, Toro Energy - 08 9214 2100

Kevin Skinner, Field Public Relations - 08 8234 9555 / 0414 822 631

COMPETENT / QUALIFIED PERSONS' STATEMENTS The information presented here that relates to secular disequilibrium is based on analytical results provided by the Australian Nuclear Science and Technology Organisation (ANSTO) after testing for secular disequilibrium on pulverised drill core samples from the Lake Way, Millipede and Dawson Hinkler deposits. Dr Greg Shirtliff of Toro Energy Limited takes responsibility for the integrity of the samples provided to ANSTO. The information presented here that relates to Mineral Resources of the Centipede, Millipede, Lake Way, Lake Maitland, Dawson Hinkler,  and Nowthanna deposits is based on information compiled by Dr Greg Shirtliff of Toro Energy Limited (with the aid of Mega Uranium Limited geologists Mr Stewart Parker and Mr Robin Cox in the case of Lake Maitland) and Mr Robin Simpson and Mr Daniel Guibal of SRK Consulting (Australasia) Pty Ltd. Mr Guibal takes overall responsibility for the Resource Estimate, and Dr Shirtliff takes responsibility for the integrity of the data supplied for the estimation. Dr Shirtliff is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mr Guibal is a Fellow of the AusIMM and Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG) and they have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)'. The Competent Persons consent to the inclusion in this release of the matters based on the information in the form and context in which it appears.Click here to download associated documents
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