The economy of Lake Maitland proves

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PERTH (miningweekly.com) – A scoping study on a stand-alone uranium and vanadium operation at the Lake Maitland project in Western Australia has confirmed the economics of the project.

ASX-listed Toro Energy previously reported a capital cost of A$270m to expand the operation, which would process at a rate of 1.94m tonnes per year, supplying an average of 1.3m pounds of uranium oxide (U3O8) and 0.7 million pounds of vanadium pentoxide (V2O5) over a lifetime of 17.5 years.

The scoping study, released on Monday, estimated that the project would have a pre-tax net present value of A$610 million and an internal rate of return of 41%, with a payback period of 2.5 years.

Total earnings before interest, tax, depreciation and amortization for the project have been estimated at A$1.76 billion, or an average of A$98 million per year, based on a U3O8 price of $70/lb and a V2O5 price of $5.67/lb.

C1 cash operating costs for the project were estimated at $15.84/lbU3O8 for the first seven years of operation, and at $23.10/lb over the life of mine, while the all-in sustaining cost for the first seven years was estimated at $20.32/lb U3O8 and at $28.02/lb over life of mine.

“The Board of Directors is delighted to announce these exceptional scoping study results for the Lake Maitland deposit, which further underscore the quality and global significance of Toro’s uranium assets,” said the Chairman. executive. Richard Homsany.

“These strong financial estimates and results, driven by modest capital and operating costs, are the culmination of many years of extensive research and development by Toro to optimize the flowsheet.

“Lake Maitland represents a significant proportion of the resources of the Wiluna Uranium Project and the results of this scoping study clearly illustrate the transformational effect of self-sustaining Lake Maitland on the potential economics of the entire project. of uranium from Wiluna.”

Homsany said the company is confident there is room to further optimize the results of the scoping study due to Lake Maitland’s proximity to the Centipede-Millipede and Lake Way uranium deposits under the project. Willuna.

“It is clear that the potential integration of additional resources from these deposits could increase production at Lake Maitland and, in particular, extend the processing of high-grade uranium resources well beyond the seventh year of production. “

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