Significant Expansion of Stated Resources at Lake Maitland and the Wiluna Uranium Project

The new resource table is included in Appendix 1, all of the details for the re-estimation are in the JORC Table 1 in Appendix 2 and all drill hole details used in the re-estimation are listed in Appendix 3. The Competent Persons’ Statement can be found at the end of this ASX announcement.

Management Commentary

Commenting on the expanded resources at Lake Maitland, Toro’s Executive Chairman, Richard Homsany, said:

“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. 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 100ppm U₃O₈ cut-off.

Toro continues to advance the Wiluna Uranium Project and significantly strengthen 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. Toro is committed to develop 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.

Toro will continue to provide further updates on development and value creation within its asset portfolio. Toro is strongly funded and well positioned to deliver on its stated milestones.”

The decision to reduce the cut-off grade at Lake Maitland and the other Wiluna deposits is in response to the recent positive uranium market conditions and their effect on the potential economics for Toro’s uranium resources.

This was especially the case at Lake Maitland, where recent re-optimisations of the potential mining pit based on the updated market conditions and potential new operating cost structure had placed pit boundaries with U₃O₈ cut-off grades at 109ppm U₃O₈, far lower than the 200ppm U₃O₈ cut-off grade of the stated resource (refer to ASX announcement of 22 October 2022). However, the reduction in the stated resource cut-off grade also allows for a better comparison of Toro’s total resource base to that of its uranium peers, many of whom also report stated resources at a 100ppm U₃O₈ cut-off.

The Lake Maitland resource had to be re-estimated within a lower grade U₃O₈ resource envelope in order to both align with the resource envelope criteria used for the other Wiluna U-V deposits (see below for further details) and to ensure accuracy when moving the stated resource cut-off to 100ppm U₃O₈, which is the same as the previous envelope cut-off. The new Lake Maitland U₃O₈ resource envelope cut-off is 70ppm U₃O₈, which is now similar to the other Wiluna Uranium Project deposits of Centipede-Millipede, which has a resource envelope cut-off of 70ppm U₃O₈, and Lake Way, which has a resource envelope cut-off of 80ppm U₃O₈.

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