Laramide Resources Ltd. (TSX: LAM) has released its financial results for the three and six months ended June 30, 2006. All amounts in this release are in Canadian dollars unless otherwise indicated.
As at June 30, 2006 the Company has $11,992,750 of working capital, no debt, significant investment holdings, and is in the best financial position in Company history. Laramide believes its business plan is fully funded through 2007. Working capital as at June 30, 2006 has increased by $1,127,946 over the working capital of $10,864,804 as at December 31, 2005. This improvement is largely due to the $5,975,733 raised largely through the issuance of common shares from the exercise of warrants and options in the period of which $2,563,200 was used to invest in the common shares of Uranium Equities Limited and $1,762,439 was spent on ongoing exploration and development work. The cash and cash equivalents component of the working capital at June 30, 2006 is $11,974,405.
The loss for the quarter ending June 30, 2006 was $310,087 on revenues of $258,555, compared to a loss of $183,289 on revenues of $84,607 for the same period in the previous year. Revenues were higher in 2006 due to greater royalty income from the Cerro Colorado gold operation in Sonora, Mexico and expanded interest income on larger cash balances. Administrative costs increased by $ 300,746 over the same period last year reflecting the Company’s ramp-up of activity in Australia as the Company put in place its management team and opened an Australian corporate office in Brisbane.
SIGNIFICANT EVENTS IN THE SECOND QUARTER INCLUDE:
Laramide’s flagship asset is the Westmoreland property in Australia which is considered to be a development stage asset as it has been the subject of extensive exploration drilling and a pre-feasibility study since its discovery in 1956. The previous owner, RTE, completed over 1,300 drill holes totaling more than 85 kilometers of drilling. Laramide acquired RTE’s database for Westmoreland in the second quarter and has been engaged in a comprehensive review of all previous RTE exploration work in order to complete a 43-101 compliant resource calculation which will also include recommendations for further exploration and development work. Mining Associates of Brisbane, Australia have been engaged to complete the 43-101 report which is expected to be delivered in September,2006. The new resource calculation is expected to be followed immediately by a full scoping study. Coincident with the completion of the resource calculation and the scoping study, Laramide plans to complete further drilling both to in-fill the deposit (where required) but also to expand the global resource figure which would support either a longer prospective mine life or a larger operation.
The Company is also active in the Northern Territory (“NT”) where exploration field work has commenced on two of its Lagoon Creek properties, both of which are adjacent to the Company’s Westmoreland Property. Westmoreland is situated in a major Proterozoic belt that extends into the neighboring NT and this belt, which is the same approximate geologic age as the Athabaska Basin in Saskatchewan, hosts some of the largest uranium deposits in the world, including the Ranger and Jabiluka deposits. Laramide controls approximately 965 square miles under exploration licenses in the NT, including two joint venture agreements, one with Arafura Resources (73 square miles), and the other with Hartz Range Mines (355 square miles), a private Australian company. Much of this area has only received preliminary exploration in the past. During 2006 Laramide will follow up 6 high profile exploration targets located on the Arafura and Hartz Range joint Venture areas. This will involve geological mapping, geochemical sampling and up to 10,000 meters of drilling. Drilling will commence on The Arafura joint venture in late September 2006.
In November of 2005, the Company acquired from Homestake Mining Company of California and La Jara Mesa Mining Company, both being wholly owned subsidiaries of Barrick Gold Corp., four advanced stage uranium properties in the western United States. The properties acquired (the La Jara Mesa, Los Ochos, Melrich, and La Sal properties) are located in the Colorado Plateau in Utah and in the Grants Mining District, New Mexico. The two most significant of the four properties are the La Jara Mesa and the La Sal projects.
La Jara Mesa had extensive work completed on it by Homestake in the early 1980’s which included 686 drill holes and metallurgical test work. The Company has applied for a Plan of Operation with the State of New Mexico and the U.S Forest Service to permit an exploration program consisting of approximately 3,000 meters of drilling. On receipt of permits, ten holes are planned to confirm grades of the deposit and to also obtain material suitable for further metallurgical test work. Historical drill data has been acquired from Barrick Gold and this data is being compiled into a digital data base. This will facilitate mine planning and the completion of a 43-101 compliant resource report during the third quarter.
As previously reported in Laramide’s news release of August 21, 2006, the Company entered into a joint venture agreement, named the Sioux Uranium Project (Project”), with Power Reserves Group LLC, a private US based uranium company, during the second quarter to explore for roll-front style uranium deposits in the western United States. The exact location of the Project is being kept confidential at present as the joint venture is in the process of a major land acquisition and leasing program. An initial exploration program will follow and will consist of a minimum of 50 drill holes on widely spaced fences targeting the host sandstone layer. The target identified is considered highly prospective for hosting roll-front uranium mineralization based on available public information from both extensive oil and gas drilling and water well tests. Target depth of the drill holes is expected to be 300 to 600 feet and permitting for the drilling is well advanced with a target of drill start-up in the fourth quarter of 2006.
SHORT TERM CORPORATE OBJECTIVES:
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
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
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.