Strathmore acquires new land in Gas Hills uranium district

Strathmore Minerals (STM-V) has snapped up more land in the Gas Hills uranium district of Wyoming, historically the second largest uranium producing area in the United States.

The Gas Hills uranium district was one of the most prolific uranium producing areas in the U.S. during the last uranium cycle, with total production exceeding 100 million lbs. The majority of production in the area was from conventional open-pit mining.

Strathmore has staked an additional 658 claims stretching over an area of 56 sq. kms to consolidate its land holdings and bring its total land holdings at Gas Hills to more than 117 sq. kms.

The newly acquired land is around areas of known deposits that had been planned and some fully permitted for open-pit mining, but were later abandoned when prices for uranium tanked in the mid-1980s.

Strathmore controls 100% of its Gas Hill projects, which now make up its core uranium land holdings in Wyoming.

The newly acquired lands in the Beaver Rim are just south of the historical mining operations conducted by companies such as Utah International/Pathfinder, now Cogema, Federal-American Partners, and Union Carbide, among others.

Strathmore got into uranium exploration in 1996 and focused on what had been found in the last uranium boom. The Kelowna-based company started acquiring property in the U.S. when the uranium price was between US$7 and US$15 per lb. U₃O₈. Todays spot price: US$75 per lb.

Three of its previously claimed properties, George-Ver, Bullrush and Loco-Lee, were extensively drilled in the 1970s by Federal-American Partners and planned for open-pit development during the 1980s. More recently, the properties were held by Power Resources, (Camecos U.S.-based subsidiary). But Power Resources abandoned the properties in 2001 prior to the up-tick in uranium prices.

As a result, significant infrastructure already exists including haulage roads and electrical power lines. According to historical documents, the three properties were originally designed to produce a total of 1.5 million lbs. of uranium from eight shallow open pits.

In February Strathmore advanced its various uranium projects in Gas Hills to the mine permitting stage. The company estimates it will take between three and six years to complete the permitting process.

Strathmore recently acquired historical data that suggests the mineralization trends southward from the main mining district onto its newly acquired lands. The next step: To see if it is amenable to advanced in-situ leach (ISL) techniques.

ISL mining requires less manpower. Under conventional mining, about 500 workers are required per 1 million lbs. of uranium mined, compared with ISL, which requires 75 workers per 1 million lbs. of uranium mined, the company says.

Strathmore is planning an extensive exploration drilling program to further develop its near-surface deposits across much of the Beaver Rim during the late spring-early summer of 2008.

In the meantime, additional exploration drilling on its Jeep property, an ISL joint venture with Yellowcake Mining is scheduled for next year. The drilling is expected to continue the expansion of the uranium resource identified by its recently completed 4,000 metre drilling program.

News of the land acquisition sent Strathmores shares up $0.07 to close at $2.47 apiece on a trading volume of 96,601 shares.