The Asia Miner

SEP-OCT 2014

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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40 | ASIA Miner | September/October 2014 Australian Uranium INITIAL assay results from a drilling campaign at Toro Energy's Wiluna Uranium Project in Western Australia (WA) have revealed the highest ever recorded grades of uranium mineralization at the Millipede deposit. The assays have exceeded the company's expectations and represent a signifcant improvement on previous results. The highest grade intersection is 1.4% eU3O8 at just 1 metre below the surface while there are average grade intersections of up to 0.4% U3O8 over 1.5 metres. The drilling campaign began in April 2014 and comprised 1639 air core and sonic holes for 16,375 metres at the Centipede, Millipede, Lake Way and Lake Maitland deposits. These deposits represent 56.5 million pounds at a 200ppm cut-off of the total Wiluna regional resource of 76.5 million pounds. They form the basis of the current project economic model which has approval for the processing facility as well as for the Centipede and Lake Way deposits. The Millipede deposit has been referred to the WA and Federal governments for environmental approval. A 100 metre x 100 metre grid with closely spaced 5 metre x 5 metre grade control drilling pattern was applied across each of the four de- posits within high-grade zones planned to be mined initially to test the integrity of current resource estimations and assess the continuity of the mineralization. The results were continuous across the whole of the drilling grid at just 1 metre below surface and represent a signifcant increase on previous reported grade intersections which averaged up to 0.24% U3O8 and peaked at 1.14% eU3O8. Toro Energy's managing director Vanessa Guthrie says, "The new high-grade intersections are extremely encouraging and further confrm Toro's belief that the Wiluna deposits comprise robust grades and min- eralization at shallow depths. Each drilling campaign Toro has under- taken at Wiluna has shown higher grade mineralization than has been historically indicated. "Toro continues to advance the approved Wiluna project which stands out as one of the few projects globally that is approved and capable of being fnanced to bring new product to the market as the uranium price recovers." Toro expects to receive full results of the drilling program across all four deposits by the end of the September quarter. The project is 30km southeast of Wiluna in central WA. As well as Wiluna, which is set to become WA's frst ever uranium mine following fnal environ- ment approvals granted in April 2013, Toro owns a highly prospective suite of exploration projects highlighted by its own discovery at the Theseus project on the border of WA and the Northern Territory. The company also owns uranium assets in the Northern Territory and in Namibia, Africa. FINALIZATION of an Aus$36.5 million equity injection has transformed the balance sheet of Energy and Minerals Australia (EMA) and put it in a position to rapidly progress the development of its Mulga Rock Uranium Project in Western Australia. The funds have been secured from an investment by Forrest Family Investments (FFI) and the issu- ance of new shares to Acorn Capital, Macquarie Bank and Element Resources Fund. The Perth-based resource development company has received $12 million from an equity raising to FFI, which is an Andrew Forrest entity within the Minderoo Group (FFI). Andrew Forrest is chairman and former CEO of the Fortescue Metals Group, and is also founder and Chairman of Minderoo Foundation, Australia's largest philanthropic organization. EMA has also issued to FFI one free option, for each share issued, which is exercisable at 5 cents per share on or before June 30, 2016. The company's previous debt holders, leading Australian resource in- vestment groups Acorn Capital and its clients, Macquarie Bank and the Element Resources Fund, have subscribed for a total of $23.3 million in new shares and foregone $1.2 million of fees. This move has eliminated all of EMA's bank debt. The transactions, which were approved by shareholders on July 10, have restructured the company's balance sheet and increased its net assets by $36.5 million. EMA's managing director Mike Young says, "It is with great satisfaction that we can advise that EMA has raised $12 million in cash and eliminated all of its debt resulting in an increase to the company's net assets of $36.5 million. "We would like to express our appreciation to all parties that par- ticipated in these transactions. EMA is now set up to aggressively advance the Mulga Rock Uranium Project to meet anticipated ura- nium demand which is expected to grow at a phenomenal rate in coming years." EMA's primary focus is the development of the Mulga Rock project which hosts one of Australia's largest undeveloped uranium resources. The project is about 240km northeast of the regional city of Kalgoor- lie-Boulder and shares infrastructure with the large Tropicana Gold Proj- ect owned by AngloGold Ashanti and the Independence Group. Mulga Rock consists of four separate deposits named Ambassador, Emperor, Shogun and Princess. The deposits also contain nickel, co- balt, rare earth elements, yttrium, scandium, vanadium, copper, zinc and gold. EMA holds title to about 1000sqkm of land at Mulga Rock. The dis- coveries to date demonstrate the signifcant potential of this landholding for the low-cost discovery of additional uranium resources. EMA secures funds for Mulga Rock A camp site at Toro Energy's Wiluna Uranium Project in central Western Australia. Record grades at Millipede deposit

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