Significant Expansion of Stated Resources at Lake Way and Centipede-Millipede Deposits Boosts Value of Wiluna Uranium Project

Toro Energy Limited (ASX: TOE) (‘the Company’ or ‘Toro’) is pleased to announce that the Company has decided to expand the stated uranium (as U₃O₈) and vanadium (as V₂O₅) resources at both the Centipede-Millipede and Lake Way uranium-vanadium (U-V) deposits (Figure 1) by reducing the stated U₃O₈ and V₂O₅ resource cut-off grades at these two deposits to 100ppm from 200ppm.

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• Rapidly improving uranium market is driving significantly improved economics at the Wiluna Uranium-Vanadium (U-V) Deposits.
• As a result Toro has lowered the U₃O₈ and V₂O₅ cut-off grade for the stated resources at the Lake Way and Centipede-Millipede U-V Deposits from 200ppm to 100ppm, which effectively expands the stated resource and lowers the average grade.
• The stated Centipede-Millipede U₃O₈ resource expands by 25% or 5.98Mlbs to 29.95Mlbs contained U₃O₈, with a reduction in average grade to 351ppm U₃O₈.
• The stated Lake Way U₃O₈ resource expands by 15% or 1.79Mlbs to 14.12Mlbs contained U₃O₈, with a reduction in average grade to 406ppm U₃O₈.
• The stated Centipede-Millipede V₂O₅ resource expands by 17% or 6.6Mlbs to 45.2Mlbs contained V₂O₅, with a reduction in average grade to 281ppm V₂O₅.
• The stated Lake Way V₂O₅ resource expands by 9.5% or 1.1Mlbs to 12.7Mlbs contained V₂O₅, with a reduction in average grade to 307ppm V₂O₅.
• The Lake Maitland deposit will be re-estimated to better define the resource at the new cut-off grade before restating the resource and re-calculating the total Wiluna Project resources at the new cut-off grades.
• The lower cut-off grade will also allow for better comparison with Toro’s industry peers, many of whom also state uranium resources at a 100ppm U₃O₈ cut-off.

Management Commentary

Commenting on this excellent news Toro’s Executive Chairman, Richard Homsany, said:

“Toro’s commitment to fast-track the development of the Wiluna Uranium Project towards production, amongst the backdrop of a rapidly strengthening uranium market, continues to unlock considerable value. The stated resource expansion and ongoing pilot plant work are important pillars of our refreshed feasibility study and will further demonstrate the significant returns on offer at Wiluna.

It is becoming more evident that the environmental permits at Wiluna require augmentation to cater for the paradigm shift in the potential economics and enhanced environmental values of the Project that have resulted from our vastly improved metallurgical flowsheet. As a product of our focused and cost effective work since Wiluna was permitted in 2017, the potential feasibility of Wiluna has been transformational and grown in value through our R&D efforts.

Importantly, Toro remains on track to align the finalisation of our optimal development strategy at Wiluna with the potential shift on government policy regarding uranium development in WA.

It may be the case that the uranium-vanadium deposits at Wiluna are developed at one single processing operation or via multiple simultaneous processing operations. A potential stand-alone Lake Maitland operation presently differs from the permitted greater Wiluna Uranium Project in that it contemplates a different processing flow sheet with major changes to the processing plant and reagent volumes, and a simpler more conventional mining method.

The outcome of Toro’s evaluation of this optionality, which is to identify the most financially feasible development for its shareholders, will drive our approach to seeking any revision to the regulatory conditions under which we are permitted to operate.

Toro looks forward to providing further updates on our development and value creation within its asset portfolio. Toro is strongly funded and well positioned to deliver on its stated milestones.”

The decision to reduce the cut-off grade is in response to a rapidly changing uranium market towards positive economics for Toro’s uranium resources, potential mining scenarios with pit boundaries beyond current stated resource cut-off grades and to allow for better comparison of Toro’s total resource base to that of its uranium peers, many of whom also report stated resources at a 100ppm U₃O₈ cut-off.

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