Strathmore nearly doubles Reno Creek Uranium project size

A new resource estimate for Strathmore Minerals‘ (STM-V, STHJF-O) Reno Creek deposit in northeastern Wyoming’s Powder River Basin is nearly twice previous estimates.

The National Instrument 43-101 calculation was based on an analysis of the original logs for 1,083 holes drilled by former owners of the property, who had explored the terrain during the late 1960s to the mid-1990s.

The Reno Creek deposit has a measured and indicated resource of 7.43 million lbs U₃O₈ (5.15 million tonnes) at an average grade of 0.065%, up from the historically reported 4 million lbs.

In addition, the property has an inferred resource of 3.4 million lbs U₃O₈ (2.39 million tonnes) at an average grade of 0.065%.

The new resource calculation only covers the Reno Creek portion of the Pine Tree-Reno Creek properties, which makes up about 15% of the total area of the project. (Historical resources for the remaining 85% of the property total about 9.7 million lbs U₃O₈.)

Last year Strathmore entered into a joint venture agreement with Nevada-based American Uranium (BB-O). Under the agreement, American Uranium will spend US$12.4 million to earn an initial 22.5% stake in the Reno Creek project and US$33 million over the next 6 years to earn a 60% interest.

The Reno Creek property covers 9.7 sq. km and is midway between Areva‘s (ARVCF-O) Christensen Ranch in-situ leach (ISL) operation and Cameco‘s (CCO-T,CCJ-N) producing Smith Ranch ISL facility, 30 miles to the south.

Areva’s Christensen Ranch facility is currently idle. Cameco’s Smith Ranch operation produced 2 million lbs of uranium concentrate in 2006.

The uranium deposits on the Reno Creek property are shallow dipping to the northwest and lie at depths of 52-137 metres from the surface. The majority of the mineralization lies below 91 metres. There is no surface expression of the deposits.

Strathmore’s shares on the TSX Venture Exchange fell 10, or 5.56%, to close at $1.70, with 66,517 shares changing hands.