Churchrock 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 Churchrock 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.

In 2017, Laramide will be working towards the following objectives:

  • Updating to a 43 101 compliant mineral resource of the historical non-compliant estimates on the Churchrock and Crownpoint properties;
  • Completion of a PEA on the Churchrock Property;
  • Development strategy plans followed by implementation for the Churchrock and Crownpoint properties

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.


Historical estimates of uranium mineral resources have been completed on the Properties. Collectively, the Properties’ historical mineral resources of uranium are considered “historical estimates” for purposes of Canadian securities legislation and NI 43101 and are therefore “NI 43101 compliant”. However, they cannot be considered current mineral resources. There are four historical resource estimates from 2005 to 2012, summarized below in the table;

  • Historical estimates suggest the mineral resources may be amenable to ISR;
  • In a Feasibility Study on Churchrock’s Section 8, prepared by Behre Dolbear &Company, the existing royalties, in particular Laramide’s royalties, were highlighted as substantially impacting the project economics;
  • Attractive acquisition costs for Laramide on an approximate USD$0.21 per pound global basis;
  • Laramide has expertise in New Mexico through its current ownership of the La Jara Mesa uranium project and the Company’s Chief Operating Officer has strong ISR experience globally;
  • Multiple proximal uranium properties provide the opportunity for further consolidation and toll milling revenues;
  • The properties are located in a mining district in a jurisdiction with excellent infrastructure.


The following table summarizes the historical and foreign resource estimates which are applicable to the Properties subject to the Proposed Transaction. The discussion that follows addresses the TSX and ASX requirements for the reporting of these types of resource estimates.

Title of Report

Source of Report

Historical Resource Clarification


Average Grade % U308

Lbs. of U308

Resource Estimate on


March 1, 2010


Churchrock Section 8 Feasibility Study prepared in January 2012

Behre Dolbear & Co. prepared for URI

Behre Dolbear & Co. prepared for URI

Measured and Indicated

Proven and Probable Reserve plus Non-reserve mineralized material


3.1 million

1.0 million




18.6 million

6.5 million

1.494 million

Resource Estimate on Mancos

March 1, 2010

Behre Dolbear & Co. prepared for URI

Indicated Resource

5.2 million


11.3 million

Crownpoint Resource Estimate

March 1, 2010

Behre Dolbear & Co. prepared for URI

Indicated Resource



15.3 million

Strathmore/Churchrock Resource Estimate (December 20, 2005)

Scoping Study (April 4, 2011)

David C. Fitch prepared the Resource Estimate for Strathmore Minerals Corp.

Behre Dolbear prepared the Scoping Study for Strathmore Minerals Corp.

Measured and Indicated Resource

Inferred Resource

6.22 million

1.95 million     



11.848 million

3.525 million


The estimates are historical/foreign estimates and are not reported in accordance with the JORC Code. A qualified person has not completed sufficient work to classify these historic mineral resources as current mineral resources or in accordance with the JORC code; and the Company is not treating the historic resources as current. It is uncertain that following evaluation and/or further exploration work that these foreign estimates will be able to be reported as mineral resources in accordance with the JORC Code.


Given the high quality of the historic work completed and the respective mining companies’ reputations, the Company believes the resource estimates to be both relevant and reliable. The Company believes that both the exploration undertaken and the initial resource calculations appear to have been undertaken professionally and to industry best practice. The historical estimates are relevant and material to Laramide, as when the purchase is completed, they will represent a major component of the resources under the control of the Company.


The Company believes that the categories of mineralisation reported in the resource calculations shown in the above table are similar to the JORC code (2012) classifications and the classifications under NI 43-101.