- Toro Energy (ASX:TOE) kicks off a refresh and update of its Lake Maitland scoping study from 2022 with mining engineers at SRK Consulting Australasia
- The Lake Maitland extension study is occurring simultaneously, where Toro will assess the potential inclusion of material from its Lake Way and Centipede-Millipede uranium deposits
- Given the ongoing strength in the uranium market, Toro aims to reassess the financial outcomes using the latest and more favourable commodity pricing
- The pit optimisation will also be re-evaluated in light of these changes
- TOE shares are up 2.5 per cent, trading at 61.5 cents at 10:55 am AEDT
Toro Energy (ASX:TOE) has initiated a refresh and update of its Lake Maitland scoping study from 2022 with mining engineers at SRK Consulting Australasia (SRK).
The company is also carrying out a Lake Maitland extension study, where Toro will assess the potential inclusion of material from its Lake Way and Centipede-Millipede uranium deposits into the proposed processing operation at Lake Maitland.
The original scoping study assumed certain conditions, such as a uranium price of US$70 per pound, and a vanadium price of US$5.67 per pound, along with an exchange rate of US$:A$0.70.
The study showed a pre-tax net present value (NPV) of A$610 million over a 17.5-year mine life, producing an average of 1.3 million pounds of uranium and 700,000 pounds of Vanadium annually, with a quick payback of 2.5 years.
The all-in-sustaining cost (AISC) for Lake Maitland at US$28.02 a pound of uranium is considered world-class, and the pit optimisation successfully increased potential production.
“We are pleased to initiate another work stream to maximise the value of the Wiluna Uranium Project,” TOE Executive Chairman Richard Homsany said.
“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.”
Given the ongoing strength in the uranium market, Toro aims to reassess the financial outcomes using the latest and more favourable commodity pricing and exchange rate guidance. The pit optimisation will also be re-evaluated in light of these changes.
TOE shares were up 2.5 per cent, trading at 61.5 cents at 10:55 am AEDT.