The capital required for the development of the Lake Maitland operation is estimated at A$270m ($202.5m), which is A$45m ($30m) lower than the previous estimate of A$315m ($236m) and includes a 20% allowance for contingency and 15% for EPCM
The Lake Maitland Uranium-Vanadium operation is located in Western Australia. (Credit: Dominik Vanyi on Unsplash)
Toro Energy has updated its capital expenditure (CAPEX) estimation for its proposed stand-alone Lake Maitland Uranium-Vanadium operation in Western Australia.
Mining engineers at SRK Consulting Australasia (SRK), and metallurgical and processing engineers at Strategic Metallurgy, have completed the CAPEX estimation.
The capital required for the development of the Lake Maitland operation is estimated at A$270m ($202.5m) including a 20% allowance for contingency and 15% for EPCM.
The current CAPEX estimate is A$45m ($30m) lower than the previous estimate of A$315m ($236m), which was for the Wiluna Uranium operation, announced in January 2014.
The total processing infrastructure is estimated to cost A$133m, excluding contingency and EPCM, and non-processing infrastructure will entail a cost of A$137m.
Toro executive chairman Richard Homsany said: “We are delighted to release a very competitive US$202.5 million CAPEX estimate for our proposed Lake Maitland Uranium-Vanadium operation.
“After the outstanding pit re-optimisation results, the CAPEX estimate is an excellent and economically significant milestone towards delivering our strategy to advance the Wiluna Uranium Project so that it is optimised when conditions are favourable for its financing and construction.
“The Wiluna Uranium Project is an asset of global significance, and our clear focus is on the long-term feasibility of uranium production from the asset as global uranium markets continue to strengthen. Toro’s view is that we are in the early stages of an increasingly upward uranium market with peak uranium prices still to come.”
The updated CAPEX estimate covers all the infrastructure required for the proposed Lake Maitland Uranium-Vanadium operation.
It includes the entire processing facility with a beneficiation plant and the ability to produce both uranium and vanadium products.
In addition, the estimate includes all mining and administration-related infrastructure, access roads, power plant, borefield and a RO desalinisation plant for water supply.
The proposed stand-alone Uranium-Vanadium operation will have around 17 years of mine life.
It is estimated to process nearly 1.94Mt of ore per annum and produces about 23.5 million pounds (Mlbs) of U3O8 and 12.2 Mlbs of V2O5 over its life.
Currently, SRK is estimating the operational expenditure (OPEX) for the project, based on the proposed new mining schedule resulted in the re-optimisation of the Lake Maitland mining pit.
Homsany added: “Toro has invested significantly in the Wiluna Uranium Project and through our patient and focussed approach our team has delivered significant potential improvements in both the capital and operating costs of the entire Wiluna Uranium Project.
“This is an exciting result for Toro shareholders. Further optionality and economic upside exists for Toro given the proximity to Lake Maitland of the Centipede, Millipede and Lake Way uranium deposits that could increase the production of uranium and vanadium.”