Laramide Australian drilling proceeding as planned; Strong downhole gamma radioactivity confirms mineralisation at initial three targets

Highlights:

• Second drill rig has completed RC drilling at Long Pocket
  • All 38 planned RC drillholes completed (for 2,139 meters) at the Long Pocket prospect and on track for maiden Mineral Resource Estimation expected by Q1 2025
  • Composite downhole gamma responses over 1m of up to 13,993 counts per second (“cps”) (including 27,319 cps¹) confirm shallow mineralisation
• 5 diamond drillholes for 932.7 meters completed at Amphitheatre
  • Downhole gamma probe 1m composites of up to 1m 16,426 cps² (including 20,312 cps) supports extensions to mineralisation
• First assay results expected Q3 2024
• Two rigs now at Huarabagoo and Junnagunna with resource extension drilling underway; initial hole indicates wide mineralised intervals with peak 1m gamma composites of up to 6,992 cps (including 13,350cps)³
• First hole at Huarabagoo extended because mineralisation continued further down from the initial planned hole depth of 80m.

TORONTO, Canada – August 19, 2024 — Laramide Resources Ltd. (“Laramide” or the “Company”) (TSX: LAM; ASX: LAM; OTCQX: LMRXF), a uranium mine development and exploration company with globally significant assets in the United States and Australia, is pleased to provide an update on its drilling activities at the Westmoreland Uranium Project in Queensland, Australia (“Westmoreland”).

As reported on June 20, 2024, this season’s exploration drilling campaign at Westmoreland is comprised of up to 12,000 meters of diamond and RC drilling across multiple targets and is designed to potentially expand the resource at existing deposits and to identify potential satellite deposits, which might materially impact either the ultimate mine life of the project or contribute to the potential for increased scale of operations. The program is planned to test up to five targets and is off to an excellent start with positive results already obtained from the first three targets drilled. The findings are supported by downhole gamma probe readings, geological logging and hand-held scintillometer analysis. An initial batch of samples were sent for assaying in late July and the first assay results are expected to be returned within the next couple of weeks.

Commenting on the exploration results, Laramide’s Vice-President of Exploration Rhys Davies said:  

“Our drill program at Westmoreland is proceeding very well and meeting expectations with the first of our exploration drillholes at Amphitheatre returning multiple zones of mineralization (both laterally and deeper than previously known). As well, the Long Pocket infill drilling has returned both significant and shallow gamma responses confirming continuity of mineralization. The next stage of this year’s program is to prove the potential, indicated in the 2023 drill program, to both link and expand the Huarabagoo and Junnagunna deposits that were used to produce the Westmoreland 2016 PEA. We look forward to updating investors as the assay results are received over the coming weeks and months.

“The goal of this year’s program is to start to quantify and qualify what we believe to be a significantly larger asset than has already been defined. Last year’s drilling results have given confidence to our assumptions that the potential size of Westmoreland’s uranium mineralization can become much larger.”

The second drilling rig arrived on site in July, which has accelerated the progress of the total campaign which will cover five targets. The planned programs at the Long Pocket deposit and the Amphitheatre prospect have now been completed. Thus far, thirty-eight RC shallow resource infill holes for 2,139m at Long Pocket, and five diamond holes for a total of 932.7m at Amphitheatre are complete. Downhole gamma probe data confirms drilling has successfully identified infill mineralisation at Long Pocket. Furthermore, extensions to mineralisation at Amphitheatre have also been tested.

Both rigs have subsequently moved on to resource extension drilling at the Huarabagoo and Junnagunna deposits which are two of the three deposits included in the 2016 Preliminary Economic Assessment (“PEA”). The first of these holes was recently completed at Huarabagoo. The objective of this drilling is to investigate the potential to increase the current resource estimate which is currently defined as an Indicated Mineral Resource totalling 36.0 million pounds of uranium contained in 18.7 million tonnes at an average grade of 0.089% U₃O₈ and an Inferred Mineral Resource totalling 15.9 million pounds of uranium contained in 9.0 million tonnes at an average grade of 0.083% U₃O₈.

Long Pocket Uranium Deposit

Long Pocket is a satellite deposit 7km to the east of the Westmoreland Project (Figure 5). Drilling in 2023 provided the support to model mineralisation and had highlighted zones where infill drilling was required to confirm continuity of the mineralisation to a high enough level of confidence required to contribute to a resource estimate. Thirty-eight infill RC drill holes, for a total of 2,139m, were planned accordingly for 2024 and have been recently completed.

Importantly, the initial downhole gamma probe data from the 2024 drilling has confirmed shallow (<50m depth), flat-lying, continuous mineralisation (Figure 1) with 1m downhole composite readings of up to 13,993cps (Table 2), which included individual readings of up to 27,319cps.

Assay results from Long Pocket drilling are expected in Q3 2024 and results from this year’s drilling will be incorporated into a maiden Mineral Resource Estimation of the deposit in Q1 2025. The central part of this deposit is now well understood with hole spacing now less than 50m in places.

Figure 1 E-W Cross Section (8065125N) of Long Pocket illustrating shallow, flat-lying deposit with multiple zones hosted at <30m depth and the main zone associated with dolerite sill between 30m and 50m depth. NB: interpretation based on gamma trace cps only (as seen in graphs alongside drill holes). Assays results are pending.

Figure 2 Plan view of Long Pocket drilling locations

Amphitheatre uranium prospect

The Amphitheatre uranium prospect is located 16km northeast of the Junnagunna uranium deposit and expresses as a strong 400m x 300m airborne radiometric anomaly. The area was subject to historical exploration in the late 1960s and early 1970s with Laramide rediscovering its potential in the 2022 and 2023 drill programs.

Visible secondary uranium minerals such as carnotite and torbernite are present at surface and hosted within the Westmoreland Conglomerate. Mineralisation, which was identified in the 2022 and 2023⁴ drilling programs, shows a relationship with mafic intrusive units and sharing potential genetic similarities with the nearby Westmoreland uranium deposit⁵. Drilling in 2024 comprised 5 diamond holes (932.7m), which targeted extensions to uranium mineralisation both laterally and down dip and successfully identified new zones for follow up. Initial composite downhole gamma probe data of up to 1m 16,426 cps⁶ (Table 2) including 20,312 cps supports extensions to mineralisation.

Samples have been dispatched to ALS Mt Isa with the highest-level radioactive samples analysed at ALS Perth.

Initial interpretation suggests that mineralisation may continue to the north but under alluvial cover which obscures any surface radiometric response. Follow up holes to test this region are being planned for the end of the 2024 drilling campaign.

Figure 3 Plan view of Amphitheatre drilling locations and future exploration target area

Huarabagoo Uranium Deposit

Although drilling at Huarabagoo has only recently commenced, the first hole has provided great encouragement with 5 mineralised zones intercepted (Figure 4). 1m composite gamma probe responses peaked at 6,922cps from 42-43m downhole, with individual peaks reading 13,350cps.  Additionally, the hole had to be extended due to the initial planned hole depth of 80m being in a mineralised zone. Accordingly, the hole was extended to a depth of 110.7m.

Drill core from this hole, HB24DD001, is currently being processed by Laramide’s exploration team and samples will be dispatched from site within the next few days.

Figure 4: HB24DD001 downhole log showing Lithology, Alteration and downhole gamma response (cps), mineralised zones highlighted in red bands

Figure 5: Overview Map of Westmoreland and Murphy Project. The Mineral Resource Estimates⁷ for Junnagunna, Huarabagoo and Redtree, which are wholly owned by Laramide, are restated in the independent JORC/NI 43-101 Scoping Study on Laramide Resources Ltd.’s Westmoreland Uranium Project completed by Lycopodium Minerals Pty Ltd for issue on April 20, 2016.⁸

¹ Note: downhole gamma probe analysis at 10cm intervals
² AusLog W450-1 downhole gamma probe used. 0.5x correction applied here for consistency and comparison to Reflex EX-Gamma. Raw cps actually 32,925cps. Refer Appendix JORC Table 1.
³ Note to reader, rigs utilising different gamma probes (refer details in JORC Table 1); no calculation on eU₃O₈ has been undertaken and probe data used to support sampling procedure.
⁴ ASX: Laramide Resources Ltd. Long Pocket and Amphitheatre Drilling Results Outline Growth Potential of Westmoreland Uranium Project, Queensland, Australia; Plans Further Drilling in 2023 (24th April 2023)
⁵ https://laramide.com/projects/westmoreland-uranium-project/
⁶ AusLog W450-1 downhole gamma probe used. 0.5x correction applied here for consistency and comparison to Reflex EX-Gamma. Raw cps actually 32,925cps. Refer Appendix JORC Table 1.
⁷ Westmoreland Mineral Resource Estimates include an Indicated Mineral Resource totalling 36.0 million pounds of uranium contained in 18.7 million tonnes at an average grade of 0.089% U₃O₈ and an Inferred Mineral Resource totalling 15.9 million pounds of uranium contained in 9.0 million tonnes at an average grade of 0.083% U₃O₈
⁸ The May 2009 Mineral Resource Estimates for Westmoreland has been reviewed to ensure compliance with JORC 2012 and is restated as the 2016 Mineral Resource. All material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

Qualified/Competent Person

The information in this announcement relating to Exploration Results is based on information compiled or reviewed by Mr. Rhys Davies, a contractor to the Company. Mr. Davies is a Member of The Australasian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, and is a Qualified Person under the guidelines of the National Instrument 43-101. Mr. Davies consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. All material assumptions and technical parameters underpinning the estimates in this market announcement continue to apply and have not materially changed pursuant to Listing Rule 5.23.

To learn more about Laramide, please visit the Company’s website at www.laramide.com or contact:

Marc Henderson, President and CEO
Toronto, Canada    +1 (416) 599 7363

Ann Baines, Director, Investor Relations
Toronto, Canada   +1 (647) 832-9904

Follow us on Twitter @LaramideRes

About Laramide Resources Ltd.:

Laramide is focused on exploring and developing high-quality uranium assets in Australia and the western United States. The company’s portfolio comprises predominantly advanced uranium projects in districts with historical production or superior geological prospectivity. The assets have been carefully chosen for their size, production potential, and the two large projects are considered to be late-stage, low-technical risk projects.  

The Westmoreland project in Queensland, Australia, is one of the largest uranium development assets held by a junior mining company. This project has a PEA that describes an economically robust, open-pit mining project with a mine life of 13 years.  Additionally, the adjacent Murphy Project in the Northern Territory of Australia is a greenfield asset that Laramide strategically acquired to control the majority of the mineralized system along the Westmoreland trend.  

In the United States, Laramide’s assets include the NRC licensed Crownpoint-Churchrock Uranium Project. An NI 43-101 PEA study completed in 2023 has described an in-situ recovery (“ISR”) production methodology. The Company also owns the La Jara Mesa project in the historic Grants mining district of New Mexico and an underground project, called La Sal, in Lisbon Valley, Utah.  

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.

Table 1: Drill Collar Details

Table 2: 1m Composite Downhole Gamma probe response >500cps

APPENDIX  1: JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

 Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)