Laramide Resources Ltd is pleased to announce that it has entered into an option agreement with a private Australian company, Tackle Resources Pty. Limited (“Tackle”), to acquire a 100 % interest in the Westmoreland/Lagoon Creek Project located in North West Queensland, Australia. The Lagoon Creek Project was discovered by Mount Isa Mines in 1956 and has been the subject of substantial exploration work since its discovery, most recently by Rio Tinto Exploration in the 1990’s. Rio Tinto ultimately completed a pre-feasibility study, which included infill drilling, substantial metallurgical test work and resource calculations which focused on three deposits - Redtree, Huarabagoo and Junnagunna. A further 39 uranium occurrences occur throughout the project area. Exploration tenements over the project area cover 289 square kilometres.
The principal focus of all previous work has been on the uranium mineralisation but there is evidence of widespread copper and gold mineralisation. To date 699 Percussion and Reverse Circulation drill holes for 32,396 meters and 644 diamond holes for 54,292 meters have been completed on the three main prospects. A further 857 drill holes for 66,296 meters have been completed on surrounding prospects. The pre-feasibility study showed the uranium mineralisation to be readily ameniable to acid leaching with low acid consumption with high recoveries.
Lagoon Creek ranks amongst the largest uranium deposits in Australia. In turn, Australia ranks first in the world in known recoverable resources of uranium with 28% of the total. By contrast, Canada ranks third with 14% but has a leading position in world mine output with 30% of global supply. (For further information on uranium in Australia, see www.uic.com.au )
Laramide has signed a binding letter of intent on the Lagoon Creek project and has paid Tackle the initial $50,000 non-refundable payment which provides for a due diligence period that expires on July 28, 2004. On completion of the due diligence period Laramide can exercise its option and acquire 100 % of the project by issuing Tackle 3 million shares of Laramide and agreeing to make a further payment of $100,000 on the anniversary date of the option exercise.
In addition, there are contingent bonus payments to Tackle of a further 1.5 million shares of Laramide in the event that either 200kt of economic copper (@ $0.90/lb) or 500,000 ounces of economic gold (@ $350/oz) are delineated at Lagoon Creek. Tackle Resources is a private company with exploration interests in both Queensland and New South Wales, Australia. It is an active explorer and has interests in base metals, gold and iron ore resources along with access to the innovative MIMDAS geophysical exploration technology.
Due diligence on the acquisition is currently in progress and Laramide’s plan, assuming exercise of the option, would be to immediately compile all previous work into a NP 43-101 property of merit report prior to initiating any exploration or development work on the project. An independent resource calculation would likely follow.
Uranium prices have improved substantially in the past 18 months, with spot prices rising from below US $10/lb to current levels above US $17.50/lb. This trend of rising prices is attributed to strong industry fundamentals with present world mine output (43,000 t) a little more than half the level of consumption by utilities (78,000 t) who are the consumers of all of global uranium supply. This positive pricing picture follows a prolonged bear market dating to the early 1980’s.
The transaction is subject to the approval of the TSX Venture Exchange. A finders fee is payable to Ironbark Geoservices SRL for locating the project.
For further information contact:
Marc C. Henderson, President
Tel: (416) 599-4133
Or visit our web site at www.Laramide.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.