Toro Energy's Wiluna uranium project reaches milestone public review phase

Toro Energy's (ASX: TOE) advanced Wiluna uranium project has reached an important milestone with it entering the public exhibition phase of government assessment from 25 July, 2011.

Significantly, Wiluna will be the first of Western Australia’s modern era uranium projects to reach this critical stage.

The project contains two shallow calcrete deposits, Lake Way and Centipede, with prefeasibility and optimisation studies completed. Toro is targeting first uranium production by late 2013.

Toro envisages a 10-year mine life at the rate of around 700 tonnes of uranium oxide per annum for Wiluna although nearby regional exploration and asset acquisition could extend this.

In addition, on 25 July Toro will release its Environmental Review and Management Program (ERMP) and associated documentation for Wiluna, including a range of environmental management strategies and detailed technical study reports.

The documentation will be on public exhibition for 14 weeks and covers all information required for the Western Australian and Federal Governments to make their assessment of the project, as outlined in the previous government approved Environmental Scoping Document from July last year.

The public will be invited by the Office of the Environmental Protection Agency, WA (OEPA) to review and comment on the ERMP and submit comments to the OEPA.

Toro will then submit a final ERMP after consideration of comments received by the OEPA, on which the Western Australian and Federal Governments will make their final decisions about the project.

During the 14 week ERMP public exhibition period, Toro will hold information days in Western Australia at Wiluna, Kalgoorlie, Menzies and Leonora.

The company is continuing to complete its technical work on the project, including a pilot process plant which will commence shortly, along with a full updated resource estimate, both targeted for completion in August this year.

This work will then feed into the Definitive Feasibility Study for the Wiluna uranium project, due for completion by approximately April next year.

Subject to approvals, the company is targeting Toro Energy Board commitment to the project by the end of the third quarter, 2012, to enable the commencement of on-ground construction by late in 2012, and initial commissioning production by late in 2013 and first uranium sales in 2014.

The company is continuing meetings with potential customers for future direct uranium sales agreements, in parallel with joint venture and partnership discussions with interested parties for potential participation in the project via project financing and uranium offtake agreements.

On July 18 Toro boosted its Wiluna uranium resources by 25% with the acquisition of the Nowthanna deposit in Western Australia.

Toro paid A$1.3 million in cash and 10 million Toro shares at A$0.15 per share for two exploration tenements covering about 70% of the Nowthanna uranium deposit near Meekatharra.

The deal equates to an acquisition price of $0.28 per pound at the current Toro share price which is lower than exploration cost and was the sixth regional acquisition by Toro, which is adding uranium resources at lower cost than exploration, providing spice for Toro's update due in August.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18010/toro-energys-wiluna-uranium-project-reaches-milestone-public-review-phase-18010.html