Laramide Resources Ltd. (TSX: LAM) is pleased to announce the commencement of further drilling at the Westmoreland Uranium Project in Queensland, Australia (“Westmoreland”). An initial program of 3,000 metres (30 holes) of diamond core drilling is planned to test exploration targets along strike from the Huarabagoo and Junnagunna deposits. Drilling during 2008 focused on improving the confidence level on known resources and validating historic drilling. The current program is the first stage of a broader exploration program to increase the Westmoreland resource base.
The current program will test the structural corridor between Huarabagoo and Junnagunna. Recognition of key structural and geological controls on mineralization during the 2008 drilling program resulted in successfully targeting mineralization on the southern extent of the Junnagunna deposit, as demonstrated by t drill hole JDD08-033 which intersected 13m at 0.34%U3O8 (see press release 2/10/2008). This mineralization is open to the south. The equivalent structural locations have not been tested by historic drilling for a 3 kilometre strike length between Huarabagoo and Junnagunna.
Gold Mineralization at Westmoreland
Three metallurgical test holes at Huarabagoo will also be drilled, with samples from these holes to be used to determine the nature of gold mineralization in this area.
Laramide has undertaken a preliminary review of gold mineralization at Westmoreland, and technical management now believe that gold mineralization is more widely distributed than originally thought, with potential to define a gold resource in the Westmoreland area. A selection of best gold intersections for Huarabagoo and Redtree is presented in Table 1. Historical holes are identified by prefixes “UG”, “DD”, “UM” and “PD” with all new holes (2008) identified as “WDD” prefacing the hole number.
Historically, analysis for gold at Westmoreland was selective and sporadic. Laramide’s 2008 drilling program was the first drilling program where gold was analyzed systematically. Over the course of the last year, Laramide’s technical team has had an opportunity to review the historical database and reconcile the limited historical gold data with new holes where gold assays have been reported.
Previous interpretations considered that gold mineralization was largely confined to the Huarabagoo deposit and mainly associated with the Redtree Fault system. Results from the 2008 drilling program indicate that gold mineralization is also present at the Redtree deposit and also occurs within the horizontal lenses outside of the Redtree fault zone. A review of past analyses also indicates that significant areas between known gold intersections have not been assayed for gold. A plan of gold intersections in historic drilling at Huarabagoo and Redtree expressed in terms of grade x thickness and also showing the distribution of drill holes where no gold analyses have been undertaken is presented in Figure 2, posted to the company website at www.laramide.com. Cross sections highlighting the occurrence of gold mineralization at Huarabagoo and Redtree are presented in Figures 3 and 4, in the same location on the website.
Peter Mullens, Laramide’s VP Exploration, commented: “We have commenced drilling at Westmoreland, and will continue the program until rainy season conditions become too disruptive. We are drilling on centres ranging from 200 metres to 500 metres over a three kilometre strike length that has received very limited attention to date, and could be a source of resource expansion. We expect first results from this program to be reported late in 2009 or early 2010. We are also pleased with the comprehensive review of gold mineralization, based on limited historical data, and all holes in the existing program will be assayed for gold as well as uranium, and we will continue to release gold assays as they are returned from the lab.”
Laramide has implemented a quality control program at Westmoreland to ensure best practices.
Under the guidelines of the National Instrument 43-101, the Qualified Person for the Westmoreland Uranium Project is Mr. Peter Mullens who is a member of the Australian Institute of Mining and Metallurgy. Mr. Mullens has reviewed and approved the technical content of this release.
Laramide is engaged in the exploration and development of high quality uranium assets. Its wholly owned uranium assets are in Australia and the United States. Laramide's portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project, Westmoreland, in Queensland, Australia, is one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.
For further information contact:
Flora Wood, VP Investor Relations Peter Mullens, VP Exploration
Toronto, Canada +1 (416) 599 7363 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.