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Church Rock and nearby ISR Properties

Laramide’s 100% owned Church Rock Uranium Project and nearby properties in New Mexico,USA, are premier, In Situ Recovery projects that benefit from near-term production potential at low cost of operation. In October 2017, Laramide announced results of its maiden independent NI 43-101 Mineral Resource Estimate (the “Resource Estimate”) for the Company’s Church Rock Uranium Project (the “Project” or “Church Rock”), located in New Mexico, United States.  The Resource Estimate was prepared to CIM Definition Standards (2014) as incorporated in NI 43-101 and completed by Roscoe Postle Associates Inc. (“RPA”) in Denver, USA with the assistance of Laramide’s technical team.  The Resource Estimate also satisfies the requirements of the JORC (2012) Code for Australian Securities Exchange compliance. 

The current Resource Estimate supersedes various “historical estimates” for purposes of NI 43-101 reporting (see press release dated March 29, 2017) and considers planned In Situ Recovery (“ISR”) of uranium consolidating the significant work completed by previous operators on the Project.

Highlights include:

  • An Inferred Resource Estimate of 33.9 million tons at an average grade of 0.075% eU3O8 for a contained resource of 50.8 million pounds using a 0.5 ft-% Grade Thickness (GT) cutoff.
  • Data from previous operators was consolidated and digitized resulting in a database of 1,667 drill holes totaling approximately 1,841,545 feet of drilling.
  • The report highlighted areas for immediate follow up exploration to both improve confidence in the Resource Estimate and potentially discover additional mineral resources. 

A Preliminary Economic Assessment (“PEA”) is planned to be commenced in Q4-2017 including:

  • Core drilling with ISR process and restoration testing of mineralized materials. 
  • Exploration drilling in areas of potential mineralization.

Mineral Resource Estimate

The Church Rock Resource Estimate was completed utilizing the Grade x Thickness (GT) Contour Method, an industry standard for estimating uranium roll-front type deposits hosted within groundwater-saturated sandstones.  The mineralization at Church Rock has been previously shown to be amenable to In-situ Recovery (ISR) techniques.

The following table summarizes the Mineral Resource Estimate.  Due to the historical nature of the data the resource estimate is classified as Inferred, until additional new confirmation data can be obtained:

Table -1   Mineral Resource Estimate – September 30, 2017
Laramide Resources Ltd. – Church Rock Deposit

Classification

Sand Unit

Tonnage

Grade

Contained Metal

(Tons)

(% eU3O8)

(U3O8 lbs)

Inferred

Dakota Sandstone

632,000

0.115

1,452,000

 

Morrison Formation - Brushy Basin

64,000

0.147

189,000

 

Morrison Formation - Westwater Canyon (A Sand)

1,714,000

0.075

2,556,000

 

Morrison Formation - Westwater Canyon (B Sand)

7,890,000

0.077

12,145,000

 

Morrison Formation - Westwater Canyon (C Sand)

4,498,000

0.092

8,290,000

 

Morrison Formation - Westwater Canyon (D Sand)

6,588,000

0.067

8,894,000

 

Morrison Formation - Westwater Canyon (E Sand)

6,110,000

0.068

8,310,000

 

Morrison Formation - Westwater Canyon (F Sand)

5,557,000

0.068

7,583,000

 

Morrison Formation - Westwater Canyon (G Sand)

595,000

0.084

1,005,000

 

Morrison Formation - Westwater Canyon (H Sand)

231,000

0.086

396,000

Inferred Total

 

33,879,000

0.075

50,820,000


Notes

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources are reported at a grade x thickness (GT) cut-off of 0.5 ft-%.
  3. A minimum thickness of 2.0 feet was used.
  4. A minimum cut-off grade of 0.02% eU3O8 (based on historic mining costs and parameters from the district) was used to define the mineralization envelope.
  5. Internal maximum dilution of 5.0 feet was used.
  6. Grade values have not been adjusted for disequilibrium (equilibrium factor = 1.0).
  7. Tonnage factor of 15 ft3/ton (based on historical density used by the mining operators) was applied.
  8. Totals may not add due to rounding.

Next Steps

With the completion of the Resource Estimate, the Project will be advanced to a PEA.  This will be the first economic study on the consolidated Project, and would include the elimination of certain royalties owned by Laramide (including the sliding scale 5%- 25% gross revenue royalty) on portions of the Project.  The PEA will also have the benefit of the Feasibility Study on Section 8 of the Project completed by a previous operator.

To complete New Mexico Environmental Department Groundwater Discharge Plan requirements, the Company must demonstrate in a laboratory environment the ability, post leaching, to restore groundwater in the mining aquifer to an acceptable level.  In order to complete this leach study fresh core is required from the Project.  The Company plans to complete this core drilling and begin the leach-restoration testing in early 2018.

Exploration is also planned for areas noted in the Technical Report where wide-spaced drilling previously defined potential mineralization.  This drilling, in conjunction with the core studies, may allow areas of the present Inferred Mineral Resource to be elevated to Measured and Indicated Resources, as well as lead to the potential discovery of additional mineral resources. 

Laramide’s Crownpoint Project is located 25 miles from Church Rock Project and part of Laramide’s ISR division in New Mexico, United States. The large Crownpoint asset is permitted for s3 million pounds of U3O8/a Central Processing Plant.


Church Rock and Crownpoint Properties Acquisition

On January 5, 2017, the Company announced the Uranium Resources Inc. (“URI”) transaction closed, pursuant to which Laramide Resources Ltd. Acquired 100% of an advanced stage portfolio of high quality In Situ Recovery  (“ISR”) projects in New Mexico. The properties are principally comprised of the Church Rock and Crownpoint  projects, in addition to nearby assets.

The transaction took over a year to complete and includes the approval from the U.S. Nuclear Regulatory Commission to transfer materials licenses for the properties to Laramide.

These projects have been previously burdened by significant net smelter royalties, specifically the sliding  scale royalty, held by Laramide Resources of up to 25% of gross revenue covering certain areas of the properties.

Following the acquisition by Laramide a leading In Situ Recovery (“ISR”) division is created operating in a tier one jurisdiction with enhanced overall project economics and potential low operating costs.