JOHANNESBURG (miningweekly.com) – Uranium developer Toro Energy has signed a farm-in and joint venture (JV) agreement with the Australian division of global nuclear energy group Areva to explore in the Northern Territory.
The agreement covers a tenement package of 2 292 km2 in the “relatively underexplored” Wisco basin, south-west of Tennant Creek.
“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,” said Toro MD Vanessa Guthrie on Monday.
Toro has identified a possible palaeochannel system from geophysical surveys with an exploration target that has the potential to host a significant basin-sized uranium mineralisation system, capable of accommodating multiple deposits amenable to in-situ leach operations.
Toro believes that 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.
Under the agreement, Areva is required to spend A$500 000 within two years of signing the farm-in and JV agreement to earn a 51% interest in the JV properties. Areva will have the option to spend another $1.5-million over four years to increase its interest to 80%.
Drilling is planned to start in the first half of 2015.