Toro Energy (ASX: TOE) has achieved high rates of extraction in the first uranium extraction tests for the Theseus Project as the company works towards an initial resource statement.
Theseus is Toro Energy's principal exploration asset, with an exploration target range of between 22 million pounds and 44 million pound uranium, with significant upside.
Results from the initial extraction tests showed extractions of 95.5% and 96.4% with very low acid consumption.
The extraction process was quick, with the majority of leaching occurring within the first 12 hours.
Managing director Greg Hall said the result boded well for Theseus, where Toro is targeting a JORC Resource in the September quarter.
"These initial uranium extraction tests are extremely encouraging and demonstrate good metallurgical characteristics for the Theseus Project at this early stage of the project," Hall said.
"The Theseus Project continues to achieve milestones on a path towards an initial resource statement in the third quarter of 2012."
Given the high quality and speed of uranium extraction, it is likely that the mineralisation at Theseus consists primarily of uraninite and coffinite, which is easily extractable.
Importantly, this is comparable to the preliminary recoveries from other Australian in-situ recovery type deposits.
Toro intends to carry out further studies to examine the nature of the uranium mineral speciation.
At the end of the December quarter 2011, Toro had $10.5 million in cash reserves.
The company also has a share purchase plan underway with the aim of raising a further $10.5 million.
Toro is offering shareholders the opportunity to purchase up to A$15,000 worth of shares at an issue price of A$0.08 per share, a hefty discount to the company's last closing price prior to announcing the deal of A$0.10.
In addition, the company is waiting on a $3.75 million payment from OZ Minerals (ASX: OZL).
The payment is consideration for the termination of an agreement between the two companies as previously applied to the Mt Woods uranium project.
Earlier this month, Toro shareholders voted to accept the terms of a termination agreement for the company's involvement in the Mount Woods uranium project in South Australia.