The March 2009 quarter was also a busy one for uranium developer, Toro Energy (ASX: TOE).
There was a substantial increase of 31% in the grade of Wiluna Uranium resource, that will enhance project economics.
Resource infill and extension drilling at Wiluna in Western Australia (Centipede and Lake Way deposite) resulted in the grade increase from 419 parts per million (ppm) U3O8 to 548ppm U3O8. This was significant, as the tonnage of ore requiring processing for the same uranium output reduces by 20%.
Toro has received considerable interest in its Australian uranium assets from Chinese and Japanese investment groups, in line with the nuclear power industry development and expansion in those two countries.
Discussions are continuing regarding funding options for Toro for future project development work.
Wiluna’s new total resource for the quarter has increased to 20.21 million tonnes at 548ppm U3O8 for 11,070 tonnes (24.4 million pounds) of contained uranium oxide compared to the previously reported resource of 25.83 million tonnes @ 419ppm U3O8 for 10,835 tonnes (23.89 million pounds), both at 200ppm cut-off grade.
Metallurgical testing on Wiluna samples demonstrated viability of the direct precipitation of uranium from saline alkaline leach with improved recovery, providing the opportunity for further capital and operating cost savings.
Capital and Operating cost re-estimates under the Optimisation Study are currently underway. As with the Pre-Feasibility, these estimates will continue to include all costs needed to advance and operate a project, including infrastructure and closure costs. The Study is due for completion early September.
Research Capital said in a recent research report on Toro Energy, "the current optimisation study look set to substantial improve the economics of the project, therefore, as it was designed to lift grades by at least 20% and cut the capex figure by at least 10%. This means optimisation study release in 3Q09 will be a huge milestone for Toro Energy and its share price.”
Toro has fashioned a Joint Venture with Deep Yellow's (ASX: DYL) Namibian company, Reptile, over Toro's majority owned Namibian exploration tenements.
This will enable exploration of these highly prospective tenements to be fast-tracked, as well as access Deep Yellow's Namibian expertise. Deep Yellow will also fund the exploration. Reptile will spend A$3.5m over the next two and a half years to earn a 65% interest. Toro will retain 25% while a black empowerment enterprise, Sixzone Investments, retains 10%.
Airborne and magnetic / radiometric interpretation of the western end of the Lake Mackay tenements identified six targets for further follow-up via geochemical sampling and gravity data collection. A geochemical sampling and gravity surveying program using helicopter support was completed during May and early June. Results are expected late in July followed by drilling late in August.
At the end of the June 2009 quarter, the Company held cash and net receivables of A$9 million.
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