Toro Energy sees 17% resource jump at Wiluna following Lake Maitland upgrade
A decision by Toro Energy (ASX: TOE) to re-examine its Lake Maitland asset on the back of rising global uranium interest appears to have paid off in the form of an improved resource profile for the site.
The re-assessment has allowed the company to upgrade the resource estimate at the Western Australia operation by 12%.
The flow-on benefit has also seen a 17% resource jump for the entire Wiluna project.
Resource expansion
Executive chair Richard Homsany said the rapidly improving uranium market is driving the shift in the potential economics of the Wiluna uranium-vanadium deposits.
“Driven by strengthening uranium market conditions, we are very pleased to provide this significant expansion to the Lake Maitland and Wiluna resource bases utilising a lower cut-off grade,” Mr Homsany said.
“From a benchmarking perspective, the lower cut-off grade permits better comparison with Toro’s industry peers, many of whom also state uranium resources at a 100 parts per million triuranium octoxide (U₃O₈) cut-off.”
Further studies
Toro is looking to advance Wiluna through further feasibility studies.
“We continue to assess what is the most financially feasible model of Wiluna, adjacent to the regulatory conditions under which we operate,” Mr Homsany said.
“Toro is committed to developing the Wiluna uranium project to coincide with a strong uranium market to maximise the value of the project and demonstrate its optionality for even further growth.”
“The stated resource expansion and ongoing pilot plant work are an important foundation of the feasibility and potential increasing financial returns for the project.”
Portfolio data aligned
Toro has now completed a re-estimate of the Lake Maitland uranium and vanadium resources within a lower grade that has allowed for an expansion of the stated resources.
Recent re-optimisation of the proposed mining pit at the site based on updated market conditions and a new operating cost structure has placed pit boundaries with far lower cut-off grades.
The reduction in the stated resource cut-off grade also allows for a better comparison of Toro’s total resource base with that of its uranium peers.
The new Lake Maitland uranium resource envelope cut-off of 70ppm U₃O₈ is now similar to the other Wiluna project deposits Centipede-Millipede and Lake Way, which have cut-offs of 70 ppm and 80ppm, respectively.