Laramide is pleased to announce the results from its recently completed drilling program on the Lagoon Creek Project located 200 kilometres east of Booroloola, in the Gulf Country of the Northern Territory, Australia. The project is in Joint Venture with Arafura Resources (ASX: ARU) an Australian publicly listed company trading on the ASX. Laramide can earn 60 % of the project by spending AUD $ 5.5 million over 5 years.
In the recent drilling program Laramide completed 23 Reverse Circulation drill holes (“RC”) for 2818 meters of drilling on the North East Westmoreland target. Six holes were abandoned prior to reaching target due to excessive water and caving problems. These holes will be deepened by diamond drilling in 2007.
A total of 105 drill samples were assayed by ALS Chemex by ICP-MS following near-total digestion of the samples in a 4-acid mix (HF/HCl/HClO3/HNO3). Twenty nine samples returned results in excess of 100 ppm (0.01%) U3O8 and a further 20 samples assayed 50-100 ppm U3O8. The highest uranium result was 0.42% between 127-128 metres in NEWM204. Significant intervals of uranium mineralization (0.01% U3O8 cut-off) include:
The uranium mineralization is associated with elevated levels gold and vanadium with individual results to 1.57 g/T Au (NEWM204 124-125 metres) and 0.43% V2O5 (NEWM204 127-128 metres).
More complete results and locations of mineralized holes are detailed in the accompanying table.
Peter Mullens, VP Exploration, commented “These are encouraging results from a first pass drilling program. Drilling has encountered a flat zone of mineralization which occurs adjacent to the Lagoon Creek Fault and occurs between 60 and 120 metres below the surface. Steeper structures which have been intercepted in previous drilling were not reached due to problems with excess water and hole caving. Many of the drill holes encountered significant water and did not reach the final target depth. Laramide will extend a number of holes in 2007 with diamond drilling to test for steeper zones of mineralization.”
Drilling will continue in May 2007 as the field season commences. Laramide is currently constructing a permanent camp to help with field work in 2007. Laramide plans an extensive drilling program of around 30,000 metres on its adjacent project “Westmoreland” which is located in Queensland. Westmoreland is an unconformity style uranium deposit located in North West Queensland. It has a 43-101 compliant mineral resource estimates of 15.6 million pounds of uranium (U3O8) that are contained in 8.0 million tons at an average grade of 0.088 per cent U3O8 in the indicated category and an additional 32.9 million pounds of uranium (U3O8) contained in 16.0 million tons at an average grade of 0.093 per cent U3O8 as inferred mineral resources on the property.
GRD Minproc is continuing with the scoping study on Westmoreland. Results are expected by the end of quarter 1 2007. GRD Minproc has extensive and recent uranium expertise, with the company currently completing the construction of Paladin’s Langer Heinrich Project located in Namibia. They have also been commissioned by Paladin to complete the Bankable Feasibility Study on Paladin’s Kayelekera Uranium project in Malawi.
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For further information contact:
Marc C. Henderson, President
Toronto, Canada +1 (416) 599 7363
Peter Mullens, VP Exploration/Corporate Development
Brisbane, Australia +61 (7) 3831 3407
Or visit our web site at www.Laramide.com
This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.