Location: Northwest Queensland, Australia, adjacent to Northern Territory border
Laramide ownership: 100% owned
Proposed Mine type: Open cut mine
Estimated resources: 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
Westmoreland ranks as one of the best development stage uranium assets in the world not controlled by a senior producer or utility. The Westmoreland Project tenements are contiguous and are located as a group approximately 400 kilometres north-northwest of Mt Isa. Laramide’s wholly owned subsidiary, Tackle Resources Pty Ltd, owns 100% of Westmoreland, which is a JORC and NI 43-101-compliant sandstone-hosted conventional, open-cut deposit.
The Project is at an advanced exploration and development stage, with significant exploration and development work previously undertaken by former owner Rio Tinto. Laramide has advanced the Westmoreland Project through a series of drilling campaigns, updated resource estimates, environmental studies and metallurgical studies.
The Westmoreland project is located in a world-class mining province with favorable infrastructure and logistical support. In northwest Queensland near the Northern Territory border, the project is not far from the northern coast. It can be accessed both from the city of Mt Isa (350 km) which has an airport and from Karumba (260 km), which has a port facility. Karumba can be accessed via the town of Burketown (130 km), which is located near the coast on the Burke River. The project is located approximately 200 km northeast of the Century Zinc mine.
Key Attributes:
- 51.9 million pounds of uranium (U3O8) (JORC and NI 43-101 compliant resource), including 36 million pounds U3O8 Indicated contained in 18.7 million tonnes at an average grade of 0.089% U3O8 and a further Inferred 15.9 million pounds U3O8, contained in 9.0 million tonnes at an average grades of 0.083% U3O8
- An open cut mine with resource expansion, a low stripping ratio and 80% of the estimated resource is within 50m of the surface2
- Large land package covers 548.5 km2
- Joint venture situated along strike from Westmoreland Project
- Compelling economics even at lower uranium prices
- PEA shows project to produce approximately 4 million pounds per annum
- Metallurgical test work demonstrates high uranium recovery utilizing conventional technologies
Geology: The Redtree deposit is where the bulk of the Westmoreland resource base is located (~50%). The deposit flanks the Redtree dyke located north of the NW-trending Namalangi fault and is characterised by a mix of horizontal and vertical lenses of continuous mineralisation in distinctly coarse pebble conglomerates with grades ranging from 0.15% to >2% U3O8. Mineralisation is generally shallow, within 10m of surface and is associated with chlorite/hematite alteration. We note that the Redtree dyke (20m-30m wide) broadly extends for 7km from Redtree to Junnagunna and has utilised the same structures as the uranium mineralisation, but does not appear to be related, although spatially associated. The Huarabagoo deposit is ~3km NE of Redtree along the Redtree dyke and straddles the contact of the Seigal Volcanics with the Westmoreland Conglomerate. Mineralisation has been identified in outcrop towards the southern end and is concealed towards the north under shallow colluvium. Mineralisation occurs in 20m thick lenses, which extend to 100- 200m length and to a depth of 80m. The strongest mineralisation was found to be associated with chlorite/hematite altered coarse pebbly sandstones similar to Redtree. The Junnagunna deposit occurs at a fault intersection west of the Redtree dyke zone and south of the northwest trending Cliffdale fault. Mineralisation is generally flat lying on either side of the Redtree dyke and ranges in thickness from 0.5m to 20m in thickness beneath the Seigal-Westmoreland contact. The deposit is covered by alluvium/colluvium clays and sand and weathered Seigal Volcanics. The Longpocket deposits 8km from Junnagunna may offer additional exploration upside.
Important Political Developments in Queensland: Australia, as the third-largest producer of uranium globally, has created successful uranium industries in other states such as Northern Territory and South Australia. Laramide Resources Ltd.’s Westmoreland Project is one of the largest and highest-quality uranium development projects in Australia, and has the support of the people of northwest Queensland for job creation and economic progress in the state with real potential to promote a viable, long-term industry in Queensland. Currently, the mining policy held by the ruling political party in Queensland does not impact uranium exploration activities but does impede the ability to permit uranium mines in the State of Queensland.
1 Footnote: The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
