Toro Energy studies deliver higher grades and lower costs at Wiluna

THE DRILL SERGEANT: Toro Energy (ASX: TOE) has reported early results from geological modelling and mine planning studies currently underway at the company’s 100 per cent-owned Wiluna uranium project in Western Australia.

According to Toro the early signs are that Wiluna could deliver an improved mining grade at lower unit mining costs.

This would translate to an improved set of project economics Toro considers could potentially accelerate mine development.

“Optimisation work currently underway would ultimately lower the overall cost base at Wiluna, making the project more competitive on the global cost curve,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.

“We know that Wiluna is one of the best and most advanced uranium developments in Australia, and this current phase of optimisation has shown us that there are significant opportunities to reduce the Wiluna cost base, bringing development closer as the current market recovery emerges.”

Toro explained that the pit design and inventory improvements had come about from a 20 per cent increase in mineral resources the company reported in October 2015 for Centipede and Millipede, the first two deposits to be mined at Wiluna.

The company has been encouraged by results from the first phase of detailed optimisation studies at Centipede/Millipede, which include:

A 12 per cent increase in the grade of mining inventory material to above 1000ppm;

A 31 per cent decrease in the waste-to-ore strip ratio; and

A 43 per cent reduction in waste tonnes mined.

Toro said the increases to average mining grades, together with reductions in strip ratio and waste mined may have a material positive impact on the economics of Wiluna.

“These results show that Wiluna can produce uranium concentrate at lower overall costs,” Dr Guthrie said.

“Based on these highly encouraging results we anticipate improvements in the head grade for the processing circuit leading to improved project economics.

“Having these results at Centipede/Millipede is particularly beneficial as these deposits are the basis of mining in the early years, which could make Wiluna even more attractive for development.”

Website: www.toroenergy.com.au