Uranium developer Toro Energy Limited (ASX: TOE) ( Toro ) today announced the completion of an independent Mining Scoping Study and a Preliminary Economic Assessment [1]integrating the newly acquired Lake Maitland deposit into the Wiluna Uranium Project in Western Australia.

Based solely on mining at the already approved Centipede and Lake Way deposits and the yet to be approved Millipede and Lake Maitland deposits, the studies have confirmed:

  • An initial operations life of 16 years;
  • 20.1Mt ore mined @ 799 parts per million (ppm), including 15.9Mt ore @ 907ppm;
  • Processing head grade: 883ppm average over the first 10 years;
  • Total production at life of mine recovery of 85.6% - 30.2Mlb U3O8;
  • Average annual production over the first 10 years - 2.0Mlb U3O8; and
  • Average C1[2] cost for life of project of US$31.1/lb.

Toro will soon initiate the government assessment and approval process for both Millipede and Lake Maitland deposits.

The studies include process plant design information and capital costs from the Phase 1 definitive feasibility study completed in November 2012 and a new independent mining scoping study completed by Tetra-Tech Proteus.

The strategic acquisition of Lake Maitland, completed in November 2013, provided Wiluna with additional high grade resources to add to those at Centipede, Millipede and Lake Way. The mining study re-assessed the mining plan based on a high-grade mining scenario incorporating the Centipede, Lake Way, Millipede and Lake Maitland deposits.

"The new results validate Toro's project development work in 2013, in particular the drilling that delivered resource upgrades at each of Centipede, Millipede and Lake Way as well as the acquisition of Lake Maitland," Toro's Managing Director, Dr Vanessa Guthrie, said today.

"The studies have also shown that under suitable market conditions, lower cut-off grades would allow the exploitation of the 200ppm cut-off resources at these deposits. Moreover, there remains further upside potential at Wiluna as the mining study does not include the Indicated and Inferred Resources at the project's Dawson Hinkler and Nowthanna deposits which could extend the total mine life well beyond 20 years."

"Pleasingly, these results have been achieved without affecting the processing facility throughput or development approvals in place at Centipede and Lake Way. Toro also understands the need for further government approvals to advance an extended Wiluna Project, and our immediate priority is to refer the Millipede and Lake Maitland deposits for State and Federal government environmental assessment.  These will add to those already secured for mining at Centipede and Lake Way."

Toro has also determined additional initial capital will be required, including $27M to acquire and operate a mining fleet under an owner operator mining scenario. Total capital costs will be confirmed during the definitive feasibility study.

Dr Guthrie said Toro's goal was to continue to position itself as one of the few mining companies capable of bringing a cost competitive, sustainable, low sovereign risk project to market at a time when uranium prices are forecast to significantly lift in the second half of this decade.

The continued construction of new nuclear capacity in China and elsewhere in the world, planned re-start of Japanese reactors and the conclusion in December 2013 of the secondary supply "megatons to megawatts" program bode well for stronger future U3O8 prices.

"During 2014 Toro will pursue the further necessary government environmental approvals and progress funding arrangements with potential partners to underpin project financing and product offtake agreements," Dr Guthrie said.

Vanessa Guthrie
Managing Director

MEDIA CONTACT:
Vanessa Guthrie, Toro Energy - 08 9214 2100
Kevin Skinner, Field Public Relations - 08 8234 9555 / +61 414 822 631


[1] The inputs to the engineering studies and outputs from it have been applied to a preliminary economics assessment financial model. Ore Reserves are yet to be determined and accordingly Toro makes no claim as to economic viability or project value in this release.
[2]C1 operating cost includes all mining, processing, site administration and transport costs but excludes royalties and any sales adjustments. Calculated by reference to the A$:US$ forward curve as at 16 thJanuary 2014.
COMPETENT / QUALIFIED PERSONS' STATEMENTS
The information presented here that relates to Mineral Resources of the Centipede, Millipede, Lake Way, Lake Maitland, Dawson Hinkler and Nowthanna deposits is based on information compiled by Dr Greg Shirtliff of Toro Energy Limited (with the aid of Mega Uranium Limited geologists Mr Stewart Parker and Mr Robin Cox in the case of Lake Maitland) and Mr Robin Simpson and Mr Daniel Guibal of SRK Consulting (Australasia) Pty Ltd. Mr Guibal takes overall responsibility for the Resource Estimate, and Dr Shirtliff takes responsibility for the integrity of the data supplied for the estimation. Dr Shirtliff is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mr Guibal is a Fellow of the AusIMM and Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG) and they have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)'. The Competent Persons consent to the inclusion in this release of the matters based on the information in the form and context in which it appears. DISCLAIMER
This announcement has been prepared by Toro. The information contained in this announcement is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Toro has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by Toro. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Toro.  In particular, they speak only as of the date of this document, they assume the success of Toro's strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks.  Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Readers of this announcement are cautioned to not place undue reliance on such forward-looking statements.Click here to download associated documents
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