Toro Energy expands uranium resource at Dawson Hinkler deposit

Toro Energy Ltd (ASX: $TOE) has announced a significant 115% expansion of the stated uranium resource at the Dawson Hinkler Uranium Deposit, increasing it to 20.29Mlbs U3O8 at a 100ppm U3O8 cut-off grade. The average grade of the stated resource has decreased to 186ppm U3O8 from the previous 315ppm U3O8. This expansion is driven by improved uranium prices, supporting a lower cut-off grade and resulting in a substantial increase in the potential economics of the Wiluna Uranium Deposits in Western Australia.

Executive Chairman's Perspective on the Expansion

Toro's Executive Chairman, Richard Homsany, expressed his enthusiasm about the expansion, stating, 'This is a considerable advancement for Toro, as the ability to now consider the inclusion of the Dawson Hinkler Uranium Deposit in the production profile of Toro's Wiluna Uranium Project will significantly strengthen our pending feasibility study. The increased optionality around Wiluna's development is a great outcome for shareholders and potential investors. Identifying and advancing the most financially feasible model of Wiluna amidst the backdrop of a strengthening uranium market will continue to underpin our approach to any required changes to the regulatory conditions under which we operate. Toro looks forward to continuing to provide further updates on development and value creation within its asset portfolio. Toro remains securely funded and well positioned to deliver on its stated milestones.'

Outlook and Future Plans

The expansion of the uranium resource at the Dawson Hinkler Uranium Deposit marks a significant milestone for Toro Energy, positioning it to enhance the potential returns at the Wiluna Uranium Project. The company's strategic decision to lower the U3O8 cut-off grade in response to the rapidly changing uranium market reflects its commitment to maximizing the economic potential of its resources. With the current strong uranium prices and close proximity to Wiluna supporting the viability of Dawson Hinkler as a strategic satellite resource, Toro Energy is well-positioned to capitalize on the improving market conditions. The company's plan to re-estimate the Lake Maitland resource and re-calculate the total Wiluna Uranium Project resources at the new cut-off grades demonstrates its proactive approach to adapt to the evolving market dynamics. Toro Energy's focus on value creation and development updates, coupled with its secure funding and strong position to deliver on milestones, bodes well for its future growth and success.