Quarterly Activities Report For Period Ending 31 December 2022

Toro Energy Limited (ASX: TOE) (‘the Company’ or ‘Toro’) is pleased to provide the following review of activities for the three months ended 31 December 2022.

HIGHLIGHTS

Corporate

• Fundraising successfully completed, with approximately $5,000,000 raised by way of a placement to new and existing institutional, sophisticated and professional investors.
• Funds raised by the placement will primarily support further development of the Lake Maitland Project, the Dusty and Yandal One Projects, and provide working capital for the Company.

Wiluna Uranium Project, Western Australia

• Scoping study for the stand-alone Lake Maitland uranium/vanadium operation progressed during the quarter, with the strong results being released on 24 October 2022. Refer to Table 1 below and to the Company’s announcement of 24 October 2022 for further information in respect of the below estimates.
  
• Key outcomes from the scoping study are very competitive and include:
  • NPV pre-tax of approximately $610M at a discount rate of 8%
  • Mine life of approximately 17.5 years
    
  • Modest CAPEX of US$189M (or A$270M) including contingency and EPCM
  • Rapid payback period of 2.5 years and IRR of 41%
    
  • C1* Cash operating cost of US$23.10/lb U3O8 over Life of Mine (LoM)
  • All In Sustaining Cost (AISC)^# of US$28.02/lb U3O8 over LoM
    
  • Total EBITDA of A$1,768.6M
• Opportunity to improve value by investigating the inclusion of Mineral Resources from three (3) nearby 100% owned Toro uranium deposits in any further studies.

Dusty Nickel Project, Western Australia

• Geochemical assays have confirmed that Toro intersected gold (Au) in diamond drill hole TED25, approximately 80m north of the massive nickel sulphides discovered at Dusty in TED04.
  
• TED25 intersected 4m at 1.4g/t Au from 188m downhole, including 2m at 2.2g/t Au from 188m downhole.
• The gold intersection in TED25 is located in sheared and altered footwall metasediments between the overlying komatiite that hosts the Dusty nickel (Ni) sulphides just to the south and the underlying granite.
• The intersection confirms the prospectivity of the Dusty area for gold, with gold anomalism also intersected in drill holes TERC13, TED03, TED04, TED06, TED23, and TED24 all within the Dusty nickel discovery zone.

Yandal Gold Project, Western Australia

• High grade gold (Au) returned in geochemical assay results from rock chip samples collected from the New England Target Area, directly south of the Golden Ways Target Area. Of the 85 rock specimens collected from the field work exercise in the New England Target Area, 13 samples returned gold concentrations greater than 0.1g/t (100ppb) Au and a further 17 samples returned anomalous gold concentrations greater than 0.01g/t (10ppb) Au.

Wiluna Uranium Project, Western Australia

Toro’s 100% owned Wiluna Uranium Project consists of the Lake Maitland, Lake Way, and Centipede- Millipede Deposits (see Figure 1). Together, these deposits of the Wiluna Uranium Project contain some 52 Mt grading 548ppm U3O8 for 62.7 Mlbs of contained U3O8 at a 200ppm U3O8 cut-off (JORC 2012 – refer to ASX announcements of 15 October 2015, 1 February 2016, 21 October 2019 and 30 November 2021), together with the vanadium resource of 96.3Mt grading 322ppm V2O5 for 68.3Mlbs of contained V2O5 at a 200ppm V2O5 cut-off as referred to above (JORC2012 – Inferred – refer to the Company’s ASX announcement of 21 October 2019).

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.