EL 27429 Karns Annual technical report for period 5 January 2012 to 4 January 2013

Abstract

Exploration activities during the reporting period have involved collection of 278 soil samples (including 12 duplicates) and 27 rock chip samples throughout the tenement and chemical analysis of these. From this, there is recognition of a strong 'labile' uranium signature in basal sandstones of the Karns Dolomite that is coincident with broad radiometric anomalies in the northern and eastern part of the tenement. Up to 280 ppm U3O8 and 1360 ppm Cu were recorded in rock chips of quartz sandstone that is elsewhere chemically 'bland'. Coincident anomalous Ag, As and Pd are up to 10 times background. The anomalous soil and rock chip element suite of U, Ag, Au, As, Cu, Co, Mo, Pt and Pd, is similar to that at the top part of some established breccia pipes at nearby Running Creek, suggesting a genetic link. The various data suggest the presence of a large-scale geochemical alteration system, which broadly coincides with the surface expression of fertile breccia pipes in the underlying Gold Creek Volcanics. This model is analogous with the Arizona Strip Uranium Province that comprises clusters of high-grade uranium deposits that previously supported significant mining in the USA. This outcome is in line with predictions. It is recommended that Toro undertake further soil and rock chip sampling at EL 27429 in concert with the adjacent Selby tenement (EL 29636). Ground electromagnetics has been used successfully in the Arizona Strip to identify individual breccia pipes under cover and Toro believes it will also be successful in the McArthur Basin in defining drill targets. Induced polarisation should also be considered. The collection of more detailed ground and/or airborne electromagnetics and an initial reconnaissance drilling program should be considered after this work. Toro is not yet in a position to markedly reduce the size of this tenement.