Toro Energy

Strong Scoping Study Results For The Lake Maitland Uranium Project

Toro Energy Limited (ASX: TOE) (‘the Company’ or ‘Toro’) is pleased to announce the excellent results of its Scoping Study for the proposed stand-alone Lake Maitland Uranium-Vanadium operation, located approximately 105 km southeast of Wiluna township in Western Australia and 730 km NE of Perth.

HIGHLIGHTS

Excellent financial outcomes

  • NPV pre-tax of approximately A$610M at a discount rate of 8%
  • IRR of 41%
  • Payback period of 2.5 years
  • Total EBITDA of $1,768.6M
  • Total undiscounted cash flow of A$1,423M pre-tax
  • Average EBITDA of A$98M per annum
  • Average undiscounted cash flow of $81.3M per annum
  • Estimates assume a US$70/lb U3O8, US$5.67/lb V2O5 price and a US$:A$0.70 exchange rate

Modest CAPEX

  • US$189M (or A$270M) capital cost estimate including contingency and EPCM
  • Includes all infrastructure for the proposed stand-alone Lake Maitland operation, including:
    • entire processing facility with beneficiation plant and ability to produce both a uranium and vanadium product; and
    • all mining & administration related infrastructure, access roads, power plant, borefield and a reverse osmosis desalinisation plant for water supply
  • A$133M processing infrastructure build cost (A$95.8M excluding contingency and EPCM)
  • A$137M non-processing infrastructure build cost (A$99.2M excluding contingency and EPCM)

Low operating cost estimates

  • C1* Cash operating cost of US$15.84/lb U3O8 over the first 7 years
  • C1* Cash operating cost of US$23.10/lb U3O8 over Life of Mine (LoM)
  • All In Sustaining Cost (AISC)# of US$20.32/lb U3O8 over the first 7 years
  • All In Sustaining Cost (AISC)# of US$28.02/lb U3O8 over LoM
  • Robust estimate operating margins
  • C1 (US$15.84) and AISC (US$20.32) for the first 7 years provides Toro with very strong margins during the initial payback period

Mining and Production

  • Mine life of approximately 17.5 years
  • Low average strip ratio of 1.17
  • Process approximately 1.94Mt of ore per annum (front of beneficiation plant)
  • Annual average production approximately 1.3Mlbs U3O8 (100% Indicated Resource) and 0.7Mlbs V2O5 (100% Inferred Resource) (refer to precautionary statement above and discussion on production schedule below for further details)
  • Total production approximately 22.8Mlbs of U3O8 and 11.9Mlbs of V2O5 (refer to resource table for the Wiluna Uranium Project contained in Annexure A for further information as well as discussion on production schedule below
The Study was completed by mining engineers at SRK Consulting Australasia (SRK) and metallurgical and processing engineers at Strategic Metallurgy and highlights the project’s potential to deliver robust financial returns.

Management Commentary

Commenting on the outcomes of the Lake Maitland Scoping Study Toro’s Executive Chairman, Richard Homsany, said

The Board is delighted to report these outstanding Scoping Study results for the Lake Maitland deposit which further highlight the quality and global significance of Toro’s uranium assets. These strong financial estimates and outcomes, driven by modest capital and operating costs, are the culmination of many years of extensive research and development by Toro to optimise the processing flowsheet.

Lake Maitland represents a significant proportion of the Wiluna Uranium Project’s resources, and these Scoping Study results clearly illustrate the transformational effect of the stand-alone Lake Maitland operation on the potential economics of the entire Wiluna Uranium Project.

As global uranium markets continue to strengthen, Toro is pleased to report the cost estimates and outcomes for Lake Maitland are on track to be very competitive globally with:

  • an excellent 41% IRR
  • short payback period of 2.5 years
  • a low C1 operating cost of US$15.84/lb U3O8 in years 1 to 7 when high grade uranium resource is being processed
  • a strong life of mine C1 operating cost of only US$23.10/lb U3O8
  • a low AISC cost of US$20.32/lb U3O8 in years 1 to 7 when high grade uranium resource is being processed
  • a strong life of mine AISC cost of only US$28.02/lb U3O8
  • a modest total CAPEX of US$140M plus 20% for contingency and 15% for EPCM over a 17.5 year mine life producing a total of 22.8Mlbs U3O8 and 11.9 Mlbs V2O5.
  • total EBITDA of $1,768.6M
  • total undiscounted cash flow of A$1,423M pre-tax

With continuing feasibility work, Toro is confident that there is significant scope to further optimise these Scoping Study outcomes due to Lake Maitland’s close proximity to Toro’s 100% owned Centipede-Millipede and Lake Way uranium deposits within the Wiluna Uranium Project. It is clear that the potential integration of additional resources from these deposits could increase the production at Lake Maitland and, in particular, extend the processing of high-grade uranium resource well beyond the seventh year of production.”


Click here for the full ASX release

This article includes content from Toro Energy Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

TOE:AU
Toro Energy

Toro Energy Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Toro Energy (ASX:TOE)

Toro Energy


Keep reading...Show less

Laramide's 2024 Drill Program Continues to Return Strong Results at the Westmoreland Project in Queensland, Australia, including Notable Gold Mineralisation

Highlights:

  • Results continue to demonstrate the potential to link the Huarabagoo and Junnagunna uranium deposits
    • HJ24DD017 – 25.00m @ 393.64 ppm (0.04%) U 3 O 8 from 15.00m ,
      • including 1.00m @ 1,015.29 ppm (0.10%) U 3 O 8 from 28.00m
      • and 1.00m @ 2,128.46 ppm (0.21%) U 3 O 8 from 34.00m
    • HJ24DD019 – 6.00m @ 1,177.43 ppm (0.12%) U 3 O 8 from 87.00m ,
      • including 4.00m @ 1,520.58 ppm (0.15%) U 3 O 8 from 89.00m
  • Uranium mineralisation at Huarabagoo continues to deliver impressive results including:
    • HB24DD010 – 15.60m @ 2,237.03 ppm (0.22%) U 3 O 8 and 0.53 g/t Au from 68.40m ,
      • including 1.00m @ 2,264.06 ppm (0.23%) U 3 O 8 and 0.23 g/t Au from 70.00m
      • and 7.00m @ 4311.16 ppm (0.43%) U 3 O 8 and 0.10 g/t Au from 76.00m
      • with highest intercept result of 1.00m @ 1.42% U 3 O 8 and 0.01 g/t Au from 80.00m
  • Broad zones of gold mineralisation were also intercepted with grades up to 24.2g/t Au
    • HB24DD008 – 19.00m @ 620.58 ppm (0.06%) U 3 O 8 and 1.95 g/t Au from 48.00m ,
      • including 2.00m @ 1,720.45 ppm (0.17%) U 3 O 8 and 1.64 g/t Au from 57.00m
      • and 2.00m @ 2,202.16 ppm (0.22%) U 3 O 8 and 12.39 g/t Au from 64.00m
      • with highest intercept result of 1.00m @ 2,299.44 ppm (0.22%) U 3 O 8 and 24.20g/t Au from 65.00m
    • HB24DD006 – 8.00m @ 1,449.86 ppm (0.14%) U 3 O 8 & 0.22 g/t Au from 36.00m ,
      • including 1.70m @ 6,208.83 ppm (0.62%) U 3 O 8 & 0.78 g/t Au from 37.60m .
  • New Exploration Permit (EPM 28807) granted adjacent to Westmoreland Project adding 327km   2 of highly prospective tenure in NW Queensland

Laramide Resources Ltd. ( "Laramide" or the "Company" ) (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company with globally significant assets in the United States and Australia is pleased to announce another batch of assay results from the 2024 drilling campaign completed at the Westmoreland Uranium Project in Queensland, Australia ( "Westmoreland" ) and the receipt of a permit for exploration for a large land package immediately east of and adjacent to the current Westmoreland land tenure.

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Nuclear reactors at dusk.

NexGen Signs First Uranium Contracts, Will Sell 5 Million Pounds to US Utilities

NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) said on Wednesday (December 4) that it has set up its first uranium sales agreements with several leading US nuclear utility companies.

These contracts, starting in 2029, cover the delivery of 5 million pounds of uranium over a five year period and employ market-related pricing mechanisms to optimize returns by leveraging future uranium prices.

The uranium will be sourced from NexGen’s Rook I Project in Saskatchewan, Canada, which the company believes is positioned to become one of the largest uranium-mining operations globally.

Keep reading...Show less

Laramide Resources closes option agreement on exploration opportunity in Kazakhstan's prolific Chu-Sarysu Basin

Highlights:

  • Laramide has completed the agreement terms for the opportunity to explore 22 subsoil use license applications covering approximately 5,500 km 2 comprising the Chu-Sarysu Project located in the Suzak District of the South Kazakhstan Oblast, Republic of Kazakhstan .
  • The prospective land package covers an area which is proximal to some of Kazatomprom's largest uranium deposits and operational mines, including Cameco's JV project, Inkai, and Orano's JV project, Muyunkum-Tortkuduk.
  • The Chu-Sarysu Project area includes a number of mapped, paleo-channel roll-fronts, associated with uranium deposits and amenable to ISR mining.
  • Laramide will operate and fund the exploration program towards the discovery of a viable uranium resource.

Laramide Resources Ltd. ( "Laramide" or the "Company" ) (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company with globally significant assets in the United States and Australia is pleased to announce the successful closing of a three-year option agreement (the " Option Agreement "), with an option to extend for an additional year, with Aral Resources Ltd. (" Aral "), a Kazakh company registered with the Astana International Financial Center and the shareholders of Aral (the " Optionors "). Aral has secured 22 mineral licenses covering nearly 5,500 square kilometres of the Chu-Sarysu sedimentary basin of Kazakhstan (collectively, the " Chu-Sarysu Project ").

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Energy Fuels

Energy Fuels and Madagascar Government Execute Memorandum of Understanding to Further Advance Toliara Critical Mineral Project in Madagascar

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy Fuels" or the "Company"), a leading U.S. producer of uranium, rare earth elements ("REE"), and critical minerals, is pleased to announce that it has entered into a Memorandum of Understanding (the "MOU") with the Government of Madagascar (the "Government") setting forth certain key terms applicable to the Company's Toliara titanium, zirconium, and REE project (the "Toliara Project" or "Project"), located in southwestern Madagascar.

As previously announced, on November 28, 2024, the Madagascar Council of Ministers, as Chaired by the President of Madagascar, lifted the suspension on the Toliara Project, which was originally imposed in November 2019. The lifting of the Suspension allows the Company to continue development of the Project, re-establish community programs, and advance activities necessary to achieve a positive final investment decision ("FID").

Keep reading...Show less
Toro Energy

Toro Energy Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×