Toro Energy Advances Wiluna Uranium Project Amid Market Optimism

Wiluna Project Resource Update

Toro Energy Limited (ASX: TOE) has provided a comprehensive update on its Wiluna Uranium Project for the quarter ending 31 December 2024. The project, located in Western Australia's Goldfields region, continues to demonstrate significant resource potential with a combined uranium resource of 87.8 million tonnes grading 381ppm U3O8, equating to 73.6 million pounds of contained uranium at a 100ppm cut-off.

In addition to uranium, the Lake Maitland deposit within the Wiluna portfolio hosts a substantial vanadium resource estimated at 141.8 million tonnes grading 286ppm V2O5, containing approximately 89.3 million pounds of vanadium pentoxide. This dual mineralisation presents an opportunity for integrated mining and processing operations, which Toro is actively exploring.

Strategic Development and Scoping Study

During the quarter, Toro commenced integration of the updated vanadium resource into the Lake Maitland uranium block model, marking the start of a new scoping study update. This study aims to re-optimise the mining pit design to potentially increase mining volumes and production output. The company’s focus on Lake Maitland reflects its strategic importance in enhancing the overall economics of the Wiluna Uranium Project.

Communications with native title groups at Lake Way, Centipede-Millipede, and Lake Maitland have continued, particularly regarding planned drilling activities linked to a proposed research pilot plant. These ongoing consultations are critical for advancing exploration and development while respecting Indigenous rights and interests.

Regulatory and Environmental Considerations

Toro confirmed that although the deadline for substantial commencement under the State environmental approval (Ministerial Statement 1051) has passed, the approval remains valid. The company has sought legal advice affirming the possibility of applying for an extension under the Environmental Protection Act 1986 (WA). Future amendments to environmental proposals may be necessary as new study results emerge, underscoring the dynamic nature of regulatory compliance in mining projects.

Financial Position and Outlook

Financially, Toro reported exploration and evaluation expenditure of $1.79 million for the quarter, reflecting its commitment to advancing the Wiluna Project. The company ended the period with $8.64 million in cash and cash equivalents, providing a runway of approximately 4.2 quarters at current expenditure levels. Payments to related parties, including director remuneration, amounted to $261,000 during the quarter.

Market conditions for uranium are strengthening, and Toro remains optimistic about the long-term feasibility of production from Wiluna. The company’s methodical approach to resource optimisation, regulatory engagement, and community consultation positions it well to respond to evolving market dynamics and regulatory frameworks.

As Toro progresses its scoping study and pilot plant plans, investors will be watching closely for indications of increased production potential and project economics improvements, particularly from the Lake Maitland deposit.