Laramide Resources Ltd. (TSX: LAM) is pleased to report the submission to the USDA Forest Service (“Forest Service”) of plans to amend its current La Jara Mesa Uranium Project plan of operations. The proposed amendment seeks permits to proceed with an underground development program that will construct dual parallel inclines and an escape raise to access the body of mineralization from underground. From underground in the mineralized zone, Laramide proposes to conduct mapping, longhole drilling with gamma probing, test mining and collection of bulk samples (approximately 40,000 – 50,000 tons) for metallurgical and mill compatibility studies. The program is expected to take roughly 18-24 months to complete and, assuming the findings of development work confirm the positive economic promise of the deposit, Laramide will transition to underground mine production.
Laramide purchased La Jara Mesa from Homestake Mining Company (“Homestake”) in 2005. The mineral resource estimated for La Jara Mesa (2006, Homestake) estimates measured and indicated mineral resources of 7,257,817 pounds of uranium (U3O8) that are contained
in 1,555,899 tons at an average grade of 0.23% U3O8, and an additional inferred resource of 3,172,653 pounds of uranium (U3O8) contained in 793,161 tons at an average grade of 0.20% U3O8. Homestake filed a permit to develop La Jara Mesa with Forest Service in June 1984, and was granted approval in October 1984. Declining uranium prices at the time led Homestake to curtail their development plans and notify Forest Service of their suspension of operations. In early 1988, Homestake’s subsidiary resumed its interest in La Jara Mesa as uranium price trends improved, and permits were once again approved by Forest Service in 1988; subsequently, however, uranium prices declined again, and Homestake suspended activities for La Jara Mesa, selling it to Laramide in 2005.
Laramide management believes that the current proposed amendment mitigates risk by the following measures:
Marc Henderson, CEO commented, “We are pleased to commence this process with the Forest Service, and look forward to initiating the dialogue on getting La Jara Mesa approved for exploration and eventual production. We have posted the full Plan of Operations Amendment on our website (LINK), and will continue to update shareholders as the process evolves.”
For further information contact:
|Flora Wood, Investor Relations
Toronto, Canada +1 (416) 599 7363
|Marc Henderson, CEO
Toronto, Canada +1 (416) 599-7363
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.