Toro Energy has announced a lower CAPEX estimation for their proposed Uranium-Vanadium stand-alone project at Lake Maitland, from the recent scoping level estimation carried out by SKR Consulting Australasia and Strategic Metallurgy. Upon completion, the estimation came out $45 million lower than the previous estimate, which was completed ten years ago, for a total of $270 million.
This sets the project up as a viable independent operation, with an expected production of 23.5 million pounds (Mlbs) of U308 and 12.2 Mlbs or V205. This adds considerably to the Wiluna Uranium operation and has a similar life of mine.
The new figure provides the company’s Wiluna Uranium project with favourable conditions for financing and construction and is a result of an enhanced technical and financial feasibility assessment through the redesign of the processing flowsheet and plant. The globally significant asset is a major focus for Toro who are looking at the long-term feasibility of uranium production within a strengthening market.
The redesigned processing flowsheet has found improvements in dealing with the high clay content lithologies, which enables a more efficient process for the clay-dominant Lake Maitland deposit. The project includes a processing plant, power plant, bore field and reverse osmosis desalination plant.
Toro Energy Executive Chairman Richard Homsany said,
Are environmental regulations, health and safety concerns or potential profit loss a concern right now?
“We are delighted to release a very competitive US$202.5 million CAPEX estimate for our proposed Lake Maitland Uranium-Vanadium operation.”
“The US$202.5 million CAPEX for Lake Maitland compared to the CAPEX estimation of AUS$315 million for the entire Wiluna Uranium Project prepared almost 10 years ago is an outstanding result given inflationary pressures, and significantly improves the economics of the entire project.”
He added that further optionality and economic upside exist 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.
“We look forward to announcing the C1 operationToro Eneal expenditure estimate from the scoping study, which is expected to be completed soon,” he concluded.
Australia has ‘widespread uranium- and thorium-bearing mineral deposits”, with the Olympic Dam in South Australia holding the largest uranium deposit in the world.
As well as the Wiluna project, The Australian Vanadium Project in the Murchison Province approximately 43kms south of Meekatharra in Western Australia is an exciting new development site. This project covers approximately 200 sq km of 15 tenements and is 100% owned by Australian Vanadium Limited (AVL). The total Mineral Resource is 239Mt at 0.73% vanadium pentoxide (V2O5). The site also holds deposits of cobalt, nickel, and copper.
References
https://www.listcorp.com/asx/toe/toro-energy-limited/news/capex-for-lake-maitland-uranium-vanadium-operation-2767298.html
https://www.australianvanadium.com.au/our-assets/the-australian-vanadium-project/#:~:text=The%20Australian%20Vanadium%20Project%20consists,the%20port%20city%20of%20Geraldton.
https://www.ga.gov.au/digital-publication/aecr2021/uranium-and-thorium#:~:text=In%202019%2C%20Australia%20had%20three,mines%20in%202014%20and%202015
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Author – Troy Adams, Global Road Technology
