La Sal is a sandstone-hosted roll front uranium deposit acquired from Homestake Mining Company (a subsidiary of Barrick Gold Corporation). La Sal is a relatively small uranium project with a historical reserve of 2.7 million pounds of U3O8 (non-compliant with NI 43-101) using a 0.08% cut-off and an average grade of 0.167% or 1670 ppm. La Sal is located 60 miles from Denison’s White Mesa blanding mill. La Sal is ready to move to production, now that Laramide has received a Permit and Record of Decision approving the Plan of Operations at the La Sal project from the United States Department of the Interior Bureau of Land Management.
White Mesa Mining District, San Juan County, Utah
The permit for La Sal positions Laramide to meet the Company’s stated objective of near-term production visibility from its U.S. asset base.
The extensive historical work done at La Sal by Homestake will facilitate future development now that a permit has been granted to Laramide. A ventilation raise at site and 1,200 meter access drive was completed by Homestake in the early 1980s and they delivered an estimate of 46,000 tons of uranium ore to off-site mills. Homestake chose not to enter into commercial production in the early 1980s because of steep declines in the price of uranium.
Laramide will commence underground exploration and development activities which if positive, could ultimately lead towards commercial production. The Plan of Operations highlights the small scale mining operation approved by the BLM. La Sal is a perfect source for this mill, with good quality high grade ore.