Wiluna Uranium Project June 2010 Toro Energy is an Australian - - PowerPoint PPT Presentation

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Wiluna Uranium Project June 2010 Toro Energy is an Australian - - PowerPoint PPT Presentation

T T oro Energy Limited oro Energy Limited Wiluna Uranium Project June 2010 Toro Energy is an Australian resource Toro Energy is an Australian resource company with a multi project company with a multi project company with a multi-project


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SLIDE 1

T

  • ro Energy Limited

T

  • ro Energy Limited

Wiluna Uranium Project

June 2010

Toro Energy is an Australian resource company with a multi project Toro Energy is an Australian resource company with a multi project company with a multi-project uranium portfolio and the aim of achieving sustainable medium-term company with a multi-project uranium portfolio and the aim of achieving sustainable medium-term achieving sustainable medium term production at its flagship Wiluna Uranium Project in Western achieving sustainable medium term production at its flagship Wiluna Uranium Project in Western Australia… Australia…

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SLIDE 2

Disclaimer

This presentation has been prepared by Toro Energy Limited (“Toro”). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Toro has no reason to believe that it is not accurate, reliable or complete it has not been independently audited or verified by Toro complete, it has not been independently audited or verified by Toro. Any forward-looking statements included in this document involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Toro. In particular, they speak only as of the date of this document, they assume the success of Toro’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned to not place undue reliance on such forward-looking statements place undue reliance on such forward-looking statements. Toro makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Toro and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Toro and/or any of its Agents) for any loss or damage suffered by a Recipient or other ( g g g , y g ) y g y p persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in A$ unless stated otherwise. C t t P St t t Competent Persons Statements: The information in this report that relates to Mineral Resources is based on information compiled by Mr Daniel Guibal who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Guibal is a fulltime employee of SRK Consulting and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Guibal consents to the inclusion in this release of the matters based on his information in the form and context in which it appears. information in the form and context in which it appears. Information in this presentation relating to exploration results of the Napperby Project and Lake Mackay is based on information compiled by Dr David Rawlings BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Rawlings is a full-time employee of the Company. Dr Rawlings has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ Dr Rawlings consents to the inclusion in this release of the matters based on his information in the form and context in which it appears

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Ore Reserves . Dr Rawlings consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

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SLIDE 3

Corporate Snapshot

Capital structure

Exchanges ASX: TOE

Shareholder profile

Share Price (June 2010) A$0.08 Options (unlisted) 21.69m Shares 964.95m Fully Diluted Market Cap A$77 2m

Oz Minerals 42.5% Minorities 57 5%

Fully Diluted Market Cap A$77.2m Cash (at March 31 2010) A$59.2m Debt Nil Enterprise Value A$18.0m

57.5%

12 Month High / Low A$0.26 / $0.08

Brief Corporate History Listed on ASX March 2006 E t d i t O ti A t N b l 2007 12 Month Share Price Graph Entered into Option Agreement on Napperby early 2007 Completed merger with Nova Energy late 2007 Completed Wiluna PFS in 2008 Rights Issue late 2008 Completed Wiluna Optimisation September 2009 Share placement to OZL and Institutions in Sept/Oct 2009 Share Purchase Plan Oct/Nov 2009

3

T

  • ro’s strategy is to become a significant sustainable uranium producer.
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SLIDE 4

Key Assets

Namibian Joint Venture

4

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SLIDE 5

T

  • ro Energy Strategy

“To become a significant sustainable uranium mining company focusing on developing a top tier exploration and company focusing on developing a top tier exploration and production profile in the global uranium mining sector.”

Toro’s strategy encompasses both qualitative and quantitative

“Significant”

  • production of greater than 2.2mlb (1,000t) U3O8 pa by 2015

and quantitative targets

  • production of greater than 5.5mlb (2,500t) U3O8 pa by 2020

“Sustainable”

  • a JORC Resource greater than 100mlb (45,000t) U3O8 by 2011
  • a JORC Resource greater than 220mlb (100,000t) U3O8 by 2015

g ( )

3 8

y

Note: quantitative targets are aspirations for the company and do not constitute specific projections

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SLIDE 6

Uranium Market

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SLIDE 7

Uranium Market

Demand Demand

  • Ongoing long term contracting by utilities
  • New power station construction still increasing (57)
  • New reactors in Western countries now being planned

and supported

  • Short term softer demand – discretionary
  • Uncertainty over China’s future purchasing

methodology

Supply

  • Kazakhstan now largest global producer – ARMZ also

exerting control exerting control

  • Locking up of future potential production sources by

utilities and majors

  • New projects and discoveries time to development

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  • New projects and discoveries – time to development –

reality creeping into costs – need for supportive pricing

Source: Ux Consulting

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SLIDE 8

Uranium Market

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Source: Ux Consulting

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SLIDE 9

Australia : New Production

16000

Available New Production Per Year

Perhaps something poorly appreciated by h ff h ili i i

10000 12000 14000 O8 (tonnes) AVAILABLE MAJOR

the offshore utilities is the relatively small amount of uranium resource that is available.

2000 4000 6000 8000 Produced U3O MAJOR ALLOCATED

Most material is either fully committed or in the hands of the major companies.

2000 Y

p Toro holds a significant portion of this ‘available’ production.

Year 2,500 3,000 nnes) Toro 1,000 1,500 2,000 uced U3O8 (ton Remaining Available Production

9

500 Produ Source: Public announcements and Toro estimates.

New production excluding Majors

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SLIDE 10

Wiluna Uranium Project Western Australia Western Australia

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SLIDE 11

Wiluna Uranium Project

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SLIDE 12

Wiluna Uranium Project

Project Overview j

  • Mining - Calcrete / sand / clay hosted carnotite mineralisation – shallow (~10m deep) open pit strip

type mining – progressive rehabilitation – hyper-saline groundwater P i b d d

  • Processing – two options being considered:
  • Alkaline heap leach with direct precipitation
  • Agitated (tank) leach with direct precipitation
  • Agitated (tank) leach with direct precipitation
  • Production is approximately 1,200t UOC (1,000 tpa U3O8 equivalent)
  • Transport – road/rail shipment with export via ports of Port Adelaide and/or Darwin

Transport road/rail shipment with export via ports of Port Adelaide and/or Darwin

  • Waste Material and Tailings – either run-of-mine material washed and returned to pit (heap leach)
  • r tailings storage beside and within mined out pits and covered (agitated leach)
  • Estimated disturbance footprint is approximately 1,200 ha
  • Water use – up to 2.5 GLpa

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SLIDE 13

Wiluna Uranium Project

Total 25m lbs U3O8 [20.2mt @ 548ppm]#

Lake Way

  • 12.6Mlb U3O8 resource#
  • 10.5Mt @ 543ppm
  • near surface calcrete-style deposit

Centipede

  • 11.8Mlb U3O8 resource#
  • 9.7Mt @ 554ppm
  • 90% of currently defined resource now in Indicated

category#

Approx

Mineralisation type

  • Calcrete / clay hosted carnotite
  • Within delta, generally below water table

R i i if di i i

12km

  • Resource estimate using uniform conditioning at

200ppm cut off

  • Lake Way all assay data
  • Centipede mainly gamma data

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  • Centipede mainly gamma data

100% Toro owned project

# Refer Competent Persons Statements on Page 2 and category of resources on Page 14

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SLIDE 14

Upgraded Resource

…31% increase in TOTAL …with slight increase in resource grade …with slight increase in contained metal

Resource Grade* Contained U3O8# As at June 2009 Category Mt ppm % U3O8 tonnes Mlbs Centipede Measured 0.3 588 0.059 176 0.4 p Indicated 7.7 619 0.062 4,754 10.5 Inferred 1.7 251 0.025 424 0.9 TOTAL 9.7 554 0.055 5,355 11.8 Lake Way Inferred 10.5 543 0.054 5,718 12.6 TOTAL 10.5 543 0.054 5,718 12.6

TOTAL WILUNA PROJECT 20.2 548 0.055 11,072 24.4 *200ppm cut‐off

# Refer Competent Persons Statements, Page 2

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…grade increase significantly improves project economics

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SLIDE 15

Wiluna Uranium Project

Mining

  • Selective mining up to 2.0 Mtpa ore
  • Intensive grade control
  • Intensive grade control
  • Strip ratio approx 3.8 : 1
  • Progressive rehabilitation
  • Ore is within shallow hypersaline water table

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SLIDE 16

Wiluna Uranium Project

Processing – Option 1 Processing Option 1

Alkaline heap leach

  • On / off pads at a central location
  • Direct precipitation from

pregnant liquor

  • Processing ~1.6Mtpa
  • Average head grade 653ppm U3O8
  • Recovery 70%
  • Production 700tpa U3O8 equivalent

p

3 8 q

  • Make up water 700MLpa
  • Installed power capacity ~5MW
  • Spent heaps washed and returned
  • Spent heaps washed and returned

to the mine void

  • Project life up to 14 years

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SLIDE 17

Wiluna Uranium Project

P i O i 2 Processing – Option 2

Alkaline agitated leach

  • Direct precipitation of uranium from

Direct precipitation of uranium from pregnant liquor

  • Processing 1.3 to 2.0Mtpa
  • Average head grade 668ppm U O
  • Average head grade 668ppm U3O8
  • Recovery 86%
  • Production 700 to 1,000tpa U3O8

e i alent equivalent

  • Leaching at elevated temperature

(<1000C) M k 2 500ML

  • Make up water 2,500MLpa
  • Installed power capacity ~12 MW
  • Project life up to 14 years

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SLIDE 18

Wiluna Uranium Project

Product Transport

  • One to two 60t road trains a month

(800 1 200 UOC ) (800t – 1,200t UOC per annum)

  • Specialised transport, spill kits, secure stop overs

Hi hl l t d b th C lth G t (ASNO)

  • Highly regulated by the Commonwealth Government (ASNO)
  • Containerisation and transport in place for many years in

NT and SA

  • Requires container port, Class 7 ships
  • Potential export ports Darwin or Port Adelaide

p p

  • Darwin, Port Adelaide have existing secure facilities
  • Collaboration with other WA producers on logistics solution

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p g

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Wiluna Uranium Project

2006 2007 2008 2009 2010 2011 2012 2013

Previous Environmental Work Current Environmental Work Previous Environmental Work

  • Environmental baseline
  • Radiological baseline
  • Air quality modelling
  • Green house gas emissions
  • Meteorological data collection
  • Weather station since 2007
  • Heritage surveys (2006, 2007 & 2009)
  • Resource drilling

Meteorological data collection

  • Environmental baseline
  • Subterranean fauna, Fauna & Short Range Endemics, Flora &

Vegetation, Soils

A i l S

g

  • Metallurgical testing
  • Tailings characterisation
  • Ground water testing
  • Aerial Surveys
  • Radiological baseline, Aerial photographic record, Lidar

survey – 0.2m contours

  • Water

H d l H d l W t t

  • Ground water testing
  • Market monitoring
  • Prefeasibility and Optimisation Studies
  • Hydrology, Hydrogeology, Water management
  • Materials characterisation
  • Minerals characterisation, Chemical modelling /laboratory

testing

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  • Radiation Management, Rehabilitation and Closure,
  • ERMP, EPBC submissions
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SLIDE 20

Wiluna Uranium Project

2006 2007 2008 2009 2010 2011 2012 2013

Previous Indigenous Relations Work Current Indigenous Relations Work g g

  • Wiluna and Tarlpa claimant groups
  • Consultation directly with groups and
  • Toro providing information on radiation and

environmental management including funding of

  • Consultation directly with groups and

through Central Desert Native Title Services (CDNTS) as representative body

  • Protocols established for heritage survey

environmental management including funding of independent advice and visits to uranium

  • perations by claimant group representatives
  • Development of Heritage Management Plan

Protocols established for heritage survey work to clear exploration drilling areas

  • Toro has proposed to CDNTS process for

negotiating mining agreement p g g including cultural mapping of entire project site

  • Development of training and employment

program initially with trial pit and g g g g environmental studies

  • Negotiate mining agreement

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SLIDE 21

Wiluna Project Milestones

  • Wiluna Resource Upgrade

pg

  • Wiluna Optimisation Study
  • Trial pit approved by WA Govt
  • Mining proposal submitted to WA Govt for heap leach trial
  • Mining proposal submitted to WA Govt for heap leach trial
  • Full Project Approvals - now underway – level of assessment at ERMP
  • Bankable Feasibility Study – under preparation – management in place
  • Financing – BFS & Approvals funded – Options under review for construction

advancing toward a project development decision

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…advancing toward a project development decision

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SLIDE 22

Wiluna Uranium Project

P j t Ti t bl

2009 2010 2011 2012 2013 Optimisation

Project Timetable

Project referral Environmental Impact Assessment Metallurgical Trials

Decision to Proceed with BFS Bankable Feasibility Study (“BFS”) Indigenous Engagement Native Title Agreement Off‐take Agreements Decision to Proceed with Construct D i d C Design and Construct Commissioning & Production

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Target for first production - 2013  Completed

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SLIDE 23

Project Pipeline & Exploration Project Pipeline & Exploration

  • A$4.5m in 2010 on NT and WA projects
  • Namibian projects farm in
  • Project and consolidation opportunities
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SLIDE 24

Central Australia Exploration T enement Snapshot T enement Snapshot

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SLIDE 25

Lake Mackay Project (WA)

Uranium in T ertiary reduced sands and clays

  • Hole LP0029 - 6m @ 216ppm U3O8 (assays) OR 4 5m @ 365ppm U3O8 (gamma)#

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Hole LP0029 - 6m @ 216ppm U3O8 (assays) OR 4.5m @ 365ppm U3O8 (gamma)#

  • Hole LP0031 - 2m @ 646ppm U3O8 (assays) OR 3m @ 175ppm U3O8 (gamma)#

# Refer to the Toro ASX release “Uranium Discovery at Lake MacKay” dated 28/10/2009 for complete list of drill hole results

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SLIDE 26

Namibia

Namibia Uranium Prospect

NAMIBIA [TOE: currently 90%]

Plans

  • Toro in JV with Deep Yellow (DYL to earn 65%)
  • Covers three EPLs
  • Total acreage: 1326km2
  • Toro to retain 25% interest
  • Namibian BEE Company 10%*

Targets

  • Palaeochannel calcrete; Rossing-style bedrock
  • Possible extensions of Langer Heinrich palaeo-valley

Budget Budget

  • A$3.5 million spend over 2.5 years

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* Sixzone Investments Limited (Black Economic Empowerment)

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SLIDE 27

Birrindudu JV with Cameco (NT)

485000 mE 490000 mE 495000 mE 500000 mE 480000 mE 460000 mE 465000 mE 470000 mE 475000 mE 455000 mE 440000 mE 445000 mE 450000 mE 425000 mE 430000 mE 435000 mE 7940000 mN 410000 mE 415000 mE 420000 mE 7945000 mN 7950000 mN

7920000 mN 7925000 mN 7930000 mN 7935000 mN 7915000 mN

Birrindudu Group c 1650

GORDON DOWNS

Brown's Brown's Brown's Brown's Brown's Brown's Brown's Brown's Brown's Range Range Range Range Range Range Range Range Range

E 8003554 E 8003554 E 8003554 E 8003554 E 8003554 E 8003554 E 8003554 E 8003554 E 8003554 E 8003553 E 8003553 E 8003553 E 8003553 E 8003553 E 8003553 E 8003553 E 8003553 E 8003553

7895000 mN 7900000 mN 7905000 mN 7910000 mN

Killi Killi Beds Brow ns Range Metamorphics

  • c. 2500
  • c. 1650

E 8003556 E 8003556 E 8003556 E 8003556 E 8003556 E 8003556 E 8003556 E 8003556 E 8003556 E 8003558 E 8003558 E 8003558 E 8003558 E 8003558 E 8003558 E 8003558 E 8003558 E 8003558 E 8003559 E 8003559 E 8003559 E 8003559 E 8003559 E 8003559 E 8003559 E 8003559 E 8003559

Dome Dome Dome Dome Dome Dome Dome Dome Dome

  • REE
  • REE
  • REE
  • REE
  • REE
  • REE
  • REE
  • REE
  • REE

Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1

E 8003555 E 8003555 E 8003555 E 8003555 E 8003555 E 8003555 E 8003555 E 8003555 E 8003555 E 8003557 E 8003557 E 8003557 E 8003557 E 8003557 E 8003557 E 8003557 E 8003557 E 8003557

       

7885000 mN 7870000 mN 7875000 mN 7880000 mN 7890000 mN
  • c. 1855 Ma

Birrindudu

STURT CREEK LEWIS CREEK

E 8003560 E 8003560 E 8003560 E 8003560 E 8003560 E 8003560 E 8003560 E 8003560 E 8003560

  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)
  • Mt. Junction-U (Cu)

Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Don-U, Au (REE) Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1 Mount Mansbridge 1

  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)
  • U (Au, Xen)

Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Mount Mansbridge 2-U Oracle U O l U O l U Oracle U O l U Oracle U O l U O l U O l U Jaimani-U Jaimani-U Jaimani-U Jaimani-U Jaimani-U Jaimani-U Jaimani-U Jaimani-U Jaimani-U  

7860000 mN 7850000 mN 7855000 mN 7865000 mN

Killi Killi Beds

  • c. 1855

Birrindudu Group

  • c. 1650

Redcliffe Pound Group

  • c. 800 Ma

Slatey Creek Granite

  • c. 1790 Ma

White's Beach White's Beach White's Beach White's Beach White's Beach White's Beach White's Beach White's Beach White's Beach

  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)
  • REE (P, U)

Oracle-U Oracle-U Oracle-U Oracle-U Oracle-U Oracle-U Oracle-U Oracle-U Oracle-U

E 8003561 E 8003561 E 8003561 E 8003561 E 8003561 E 8003561 E 8003561 E 8003561 E 8003561

  • Over $1m of airborne geophysics

completed by Cameco

 

7845000 mN 7825000 mN 7830000 mN 7835000 mN 7840000 mN

KOOKABURRA-Au LARRANGANNI BLUFF-Au

Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U Birrindudu 2-U

  • Multiple unconformity uranium

targets

  • T
  • ro $1m farm-in for 51%

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 

7815000 mN 7820000 mN

Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U Killi Killi Hills-U

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SLIDE 28

Outlook

  • Wiluna Uranium Project
  • Approvals, Bankable Feasibility Study, Indigenous engagement, product marketing underway
  • Exploration initiatives

Exploration initiatives

  • Lake Mackay – new uranium discovery in greenfields project
  • Namibia – leveraging on-ground expertise through Deep Yellow
  • Birrindudu – new uranium exploration province

Birrindudu new uranium exploration province

  • Continuing evaluation of corporate and project opportunities
  • Long term uranium demand fundamentals remain strong, driven by:
  • improved utilisation / operational life extensions / construction pipeline
  • delayed supply / new production / current soft pricing

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SLIDE 29

Greg Hall

Managing Director

T E Li it d T

  • ro Energy Limited

3 Boskenna Avenue NORWOOD South Australia 5067 South Australia 5067 T elephone: +61 8 8132 5600 Facsimile: +61 8 8362 6655 Email: info@toroenergy.com.au Website: www.toroenergy.com.au