THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has signed a Farm-in and Joint Venture agreement with AREVA Resources Australia on Toro’s Wiso exploration package, located in the Northern Territory.
AREVA Resources Australia is the Australian division of the group, which Toro described to be a world leader in nuclear energy, especially in uranium production.
The Farm-in and Joint Venture agreement covers a tenement package of 2,292 square kilometres in the Wiso Basin, south west of Tennant Creek.
Toro has identified a possible palaeochannel system from geophysical surveys with an exploration target it considers to have potential to host a large basin-sized uranium mineralisation system, capable of accommodating multiple deposits amenable to in situ leach operations.
Results of combined Toro/NT government TEMPEST survey revealing
potential palaeochannels draining from uranium rich rocks in the Wiso
Basin, NT. Source: Company announcement
Toro believes its relatively unexplored Wiso Basin tenement package is ideally placed for exploring for a sandstone-hosted uranium mineralising system of a size and scale not unlike those found in Kazakhstan, where six of the world’s top 15 producing uranium mines are currently in operation.
Toro, in partnership with the Northern Territory Government, has already identified the possibility of such a basin sized drainage system existing on these tenements through the use of extensive geophysical surveys.
“We are excited to have AREVA participate in our substantial exploration portfolio at a time when few companies are actively exploring in Australia for uranium,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.
“We look forward to adding value to our NT exploration targets through a long and beneficial relationship with one of the world’s most respected uranium groups.”
Toro explained the under the terms of the agreement, AREVA is required to spend $500,000 within two years of signing the Farm-in and JV agreement to earn a 51 per cent interest in the JV properties.
Upon reaching 51 per cent interest, AREVA will then have the option to spend another $1.5 million over four years for a further 29 per cent interest for a total 80 per cent interest.
Drilling is planned to commence in the first half of 2015.