Better than expected results for Toro Energy

Toro Energy's optimisation study for its Wiluna uranium project in Western Australia has revealed very positive results.

Toro Energy’s long awaited optimisation study for its Wiluna uranium project in Western Australia has revealed significant gains in resource grade, reductions in both capital and operating cost and improved production estimates, the company announced yesterday.

Coming over a 10 month period, the optimisation study has given the company a firm base from which to move forward with Wiluna’s future development, Toro managing director Greg Hall said.

“We are extremely pleased that the results of the optimisation study have significantly enhanced the economics of the Wiluna uranium project,” he said.

“The results provide a solid platform for our bankable feasibility study due to commence in the December quarter 2009.”

According to Toro, the optimisation study revealed a 28% reduction in operating costs to $39.7 per pound from $53.9 per pound, as well as a 17% decrease in upfront capital costs to $162 million from $195 million.

Wiluna’s resources grade also improved 31% to 548 parts per million from 419 parts per million, Toro said.

The company said it now plans for an annual production target of 731 tonnes, up from the previous goal of 680 tonnes.

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