TORO Energy will hand the Napperby uranium project back to Deep Yellow after deciding it was not worth the $57 million price tag. 

 

Toro has been working on the project since 2007 and increased the uranium resource at Napperby in the Northern Territory by 400 per cent to 3351 tonnes of uranium. The Adelaide company said yesterday that after finishing a scoping study, it determined that the rate of return for the project did not warrant the cost. 

 

It put an alternate proposal to Deep Yellow but this was rejected, the company said. 

 

Control and ownership of the project will revert to Deep Yellow today. 

 

"Toro has determined ... that the current economics of the project, based on current long-term uranium prices, do not warrant taking up the Napperby purchase option under the current terms with Deep Yellow," the company said. 

 

"No significant additional uranium deposits with reasonable grade have been discovered in the region."