Toro Energy Limited (ASX:TOE) Announce Further 32% Increase in Wiluna Regional Uranium Resources

Perth, Australia (ABN Newswire) - Toro Energy Limited (ASX:TOE) announces that a full update to its Wiluna regional resource base in WA has resulted in a total resource of 50.1Mlbs contained U3O8 (52.25Mt @ 434ppm for 22,641t contained uranium at 200ppm U3O8 cut-off). This represents a 32% increase.

The Wiluna Uranium Project resources in the Centipede and Lake Way deposits have been upgraded with additional drilling, with 58% of the Project resource now classified as Measured and Indicated. Toro is currently seeking Government approvals to commence mining of these two deposits.

The Wiluna regional resource evaluation, on a 200ppm U3O8 cut-off, now includes, along with the Centipede and Lake Way deposits:

- 6.6Mlbs contained U3O8 (6 Mt @ 500ppm for 3,008t contained uranium) Indicated and Inferred resource in the Millipede deposit;

- 9Mlbs contained U3O8 (13.1Mt @ 312ppm for 4,074t contained uranium) Inferred resource in the Dawson-Hinkler Well deposits; and

- 10.5Mlbs contained U3O8 (11.9Mt @ 400ppm for 4,700t contained uranium) Inferred resource on tenements comprising Toro's Nowthanna deposit.

The Millipede deposit represents an increase of 30% over the expected 4 to 5 Mlbs exploration target range that was announced in February 2011, and the Dawson Hinkler results represent a 46% increase over the established resource acquired in 2010.

The Millipede, Dawson Hinkler Well and Nowthanna regional resources, acquired over the past 12 months, continue to be evaluated for possible future development. They are not included in the current assessment being undertaken by the Western Australian and Federal governments for approval of mining at Centipede and Lake Way.

Toro's Managing Director, Mr Greg Hall, said Toro was moving closer to being Australia's next uranium producer. The resource upgrade of the Centipede and Lake Way deposits and recent successful pilot plant processing testwork enhance the continuing technical feasibility study of the Wiluna Project, currently in the public review phase of government assessment.

Regional Resource Growth

On a regional basis, the recent acquisition by Toro over the past 12 months of 100% of the Millipede and Dawson-Hinkler Well deposits, and 100% of two tenements containing a major portion of the Nowthanna uranium deposit has significantly increased Toro's total Wiluna regional resources to 50.1Mlbs contained U3O8 (52.25Mt @ 434ppm for 22,641t contained uranium at 200ppm U3O8 cut-off grade). This represents an overall increase of 32% on the previously reported resources of 38Mlbs.

The enhanced Wiluna Uranium Project resource evaluation marginally decreased the contained U3O8 tonnes by 2% in the Centipede and Lake Way deposits, which form the basis of the Project for which Toro is seeking Government approvals to undertake construction (subject to other additional permits and Toro Board approval) from late in 2012, with commissioning production planned from late in 2013 and first uranium sales during 2014.

Centipede and Lake Way

The Centipede resource increased by 4% in metal tonnes to 12.3Mlbs U3O8 (11.32Mt @ 493ppm for 5,579t contained uranium at 200ppm U3O8 cut-off grade), mainly due to further refinement of the resource model.

At Lake Way, better definition of the mineralised envelope has resulted in 11.6Mlbs U3O8 (9.96Mt @ 530ppm for 5,280t contained uranium at 200ppm U3O8 cut-off grade) which represents an 8% decrease.

The new total Wiluna Uranium Project resources are now categorised as:

- 0.3 Mlbs Measured
- 13.6 Mlbs Indicated
- 10.0 Mlbs Inferred

Millipede

The regional resource model has included the newly established resource at Millipede for the first time. The evaluation has realised 6.64Mlbs U3O8 (6.01Mt @ 500ppm for 3,008t contained uranium at 200ppm U3O8 cut-off grade) with 1.43Mlbs (21%) being Indicated and 5.21Mlbs being Inferred resource. This was higher than the previously estimated target range of 4 to 5Mlbs in the acquired Millipede deposit.

Dawson Hinkler

At Dawson Hinkler, a significant increase of 46% in metal tonnes was realised on the previous resource as a result of improved definition of the mineralised envelope as well as the inclusion of mineralisation to the west at Toro's Albion Downs prospect. The evaluation realised 8.98Mlbs U3O8 (13.07Mt @312ppm for 4,074t contained uranium at 200ppm U3O8 cutoff grade) compared to 6.17Mlbs previously.

Nowthanna

At Nowthanna near Meekatharra, an update of the recently acquired resources on Toro owned tenements realised 10.5Mlbs U3O8 (11.9Mt @ 400ppm for 4,700t contained uranium at 200ppm U3O8 cutoff grade). This increase of 42% over the earlier anticipated resource of 7.39Mlbs is largely due to the application of a 3D resource model using uniform conditioning methodology.

'This full update on the Wiluna Project resources and Wiluna Regional resources supports our decision to progress with the Wiluna Uranium Project, and to continue to seek further uranium project opportunities within a 200 kilometre radius of Wiluna,' Mr Hall said today.

'The acquisitions from U308 Ltd, MMG, MPI and now Impact, CITIC and others in the past twelve months consolidate Toro into a very strong position in the Wiluna region.'

'Toro released the Environmental Review and Management Programme (ERMP) for the Wiluna Uranium Project in Western Australia on 25 July for a 14 week public consultation phase of government assessment. It is the first of Western Australia's modern era uranium projects to reach this important milestone,' he said.

Subject to government approvals, the Company is targeting Toro Energy Board commitment to mining of the Centipede and Lake Way deposits by the end of the third quarter, 2012, to enable the commencement of on-ground construction by late in 2012.

'The Wiluna Uranium Project is evolving into an exciting uranium mine development with the intended aim of delivering first production into an expanding global nuclear power market with considerable supply constraints into the middle of this decade. Recent market reports indicate considerable new primary mine supply will be required, and Toro believes it will be one of a very few global uranium projects which will achieve production during this important time period.'

For the complete Toro Energy Limited announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-TOE-184883.pdf

About Toro Energy Limited:

Toro Energy Limited (ASX:TOE) is a modern Australian uranium company with progressive project development, acquisition and growth. The Company is based in Adelaide, South Australia with a project office in Perth, Western Australia.

Toro's flagship and wholly-owned Wiluna uranium project (includes existing mining lease) is 30 kilometres southeast of Wiluna in Central Western Australia.

Wiluna contains two shallow calcrete deposits, Lake Way and Centipede, with prefeasibility and optimisation studies completed and a definitive feasibility study underway. Toro has commenced the Approvals process targeting the Company's first uranium production by late 2013.

Toro has three other exploration and development projects in Western Australia, and owns uranium assets in the Northern Territory, South Australia and in Namibia, Africa.

Source:

Toro Energy Limited

Contact:

Greg Hall 
Toro Energy Limited
Tel:  61-8-8132-5600
Email: info@toroenergy.com.au
http://www.toroenergy.com.au