EL 27429 Partial surrender report 5 January 2010 to 4 January 2014

Abstract

Exploration over this licence has focused on determining the extent to which phosphate lithologies, as indicated by the NT Government mapping and radiometrics, are continuations of the Selby phosphate beds, namely the basal Karns Dolomite, which is enriched with uranium and rare earth elements. Toro is also exploring for Arizona Strip analogue uranium deposits, within breccia pipes stratigraphically below the Karns Dolomite. During November 2011, Toro commissioned Thompson Aviation to carry out 4174 line kilometres (362 sq km) of magnetic-radiometrics over EL 27429. A distinct 'ridge' of elevated radiometric activity was defined, corresponding with the NTGS-mapped unconformable lithological boundary between the Echo Sandstone and Karns Dolomite, parallel to the NW-SE regional structural trend. 2 Rock chip samples and 44 soil samples were collected and assayed in 2012. A downturn in the uranium market forced Toro into immediately putting on hold any of the planned exploration for 2013 on the Karns Project and re-assessing its company operating strategy and commodity focus. In 2013 Toro undertook a detailed prospectivity analysis to identify targets, both uranium and non-uranium. Non-uranium targets were then used to interest potential JV partners, however no JV interest was generated. Uranium targets were then assessed and prioritised relative to all other uranium targets on Toro held ground within the Northern Territory and Western Australia. Using this assessment, Toro then identified exploration ground with no to only low ranked priority uranium targets to be surrendered. By late 2013 these decisions had been made and 66 percent of (99 blocks) of the total area of EL 27429 was relinquished. This represented most of the north and south of the tenement, leaving only the large radiometric and geochemical anomaly in the middle of the tenement. As of January 2014, the rest of the ground has been maintained.