Toro to Refresh Lake Maitland Uranium Scoping Study

Toro Energy Limited (ASX: TOE) (‘the Company’ or ‘Toro’) is pleased to advise that it is refreshing and updating its Scoping Study for the proposed Lake Maitland Uranium-Vanadium operation, located approximately 105 km southeast of the Wiluna township in Western Australia and 730 km NE of Perth. This is being undertaken by mining engineers at SRK Consulting Australasia (SRK). SRK and metallurgical and processing engineers at Strategic Metallurgy prepared the Scoping Study for Lake Maitland which highlighted the project’s potential to deliver robust financial returns.

Highlights

• Toro has initiated a refresh and update of its Lake Maitland Scoping Study completed in 2022.
• This will be undertaken by mining engineers at SRK Consulting Australasia (SRK). It will run parallel to the Lake Maitland Extension Study to evaluate the incorporation of material from Toro’s 100% owned and proximate Lake Way and Centipede-Millipede uranium deposits into a proposed processing operation at Lake Maitland.
• The Scoping Study assumed a price of US$70/lb U₃O₈ and US$5.67/lb V₂O₅ with an exchange rate of US$:A$0.70 to arrive at an NPV pre-tax of A$610M over a 17.5 year mine life with annual average production of 1.3Mlbs U₃O₈ and 0.7Mlbs V₂O₅ and a rapid payback of 2.5 years.
• The AISC of US$28.02/lb U₃O₈ for Lake Maitland is world class.
• The Lake Maitland pit optimisation successfully increased potential production by 8Mlbs U₃O₈ and 11.9Mlbs V₂O₅ based on these assumptions.
• As the current strength of the uranium market shows no obvious signs of slowing down, Toro will refresh the Study to evaluate what the financial outcomes would be using the latest more favourable commodity pricing and exchange rate guidance. The pit optimisation will also be assessed again.
• A standalone Lake Maitland operation is expected to process 7 years of high grade material. The duration of this scenario will also be further considered in our work.
• Toro looks forward to providing updates as work is completed.

Commenting on initiating the Lake Maitland Scoping Study refresh Toro’s Executive Chairman, Richard Homsany, said:

“We are pleased to initiate another work stream to maximise the value of the Wiluna Uranium Project. A standalone Lake Maitland uranium vanadium processing operation is potentially quite robust and viable. Preserving the optionality available to Toro moving forward, whether to develop a standalone Lake Maitland deposit or a broader Wiluna Project amongst various production and processing scenarios, is a very valuable aspect of our uranium asset.

The refresh of the Scoping Study, completed in 2022 by SRK, will also be undertaken by SRK. Assessing the Project with the latest more favourable commodity pricing and exchange rate guidance will be informative. This refresh will run in parallel to our Extension Study to evaluate the broadening of our Lake Maitland operation to include materials from our nearby 100% owned uranium deposits, Centipede-Millipede and Lake Way.

Toro reiterates its commitment to developing the Wiluna Uranium Project to maximise its value when both government policy and uranium markets align.

We are confident that our development activities will further reinforce the global significance of the Wiluna Uranium Project.”

With the current strength of the uranium market showing no obvious signs of slowing down, Toro will refresh the Study to evaluate what the financial outcomes would be using the latest more favourable commodity pricing and exchange rate guidance. The pit optimisation will also be assessed again.

Scoping Study Background

The potential stand-alone Lake Maitland operation contemplates the possible viability of only mining potential uranium ore from the Lake Maitland Uranium Deposit and processing it in a facility directly on site, next to the mining pit. None of the other uranium deposits owned by Toro in the region would be utilised. The potential stand-alone Lake Maitland operation would contemplate a different processing flow sheet with less capital intensive items and lower reagent volumes, and a simpler more conventional mining method. For further information concerning the results of the Scoping Study please see the Company’s announcement of 24 October 2022.

With the current strength of the uranium market showing no obvious signs of slowing down, Toro will refresh the Study to evaluate what the financial outcomes would be using the latest more favourable commodity pricing and exchange rate guidance. The pit optimisation will also be assessed again.

The Lake Maitland Scoping Study also contemplates producing a uranium peroxide product (yellow cake) for sale. This would involve stripping vanadium from the uranium processing flow stream, which is liberated from the uranium ore mineral, a potassium uranium vanadate, along with the uranium during leaching, to produce a low value sodium hexavanadate, as a by-product.

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