Vancouver – Uranium-focused explorer Laramide Resources (LAM-T, LMRXF-O) has been delivered a resource estimate for its La Jara Mesa project located in the Grant’s mineral district of southern New Mexico.
The independent study tables a measured and indicated resource of 1.4 million tonnes grading 0.23% U3O8 (about 7.3 million contained lbs. of U3O8) at the deposit plus an additional 720,000 inferred tonnes averaging 0.20% U3O8 (about 3.2 million contained lbs. of U3O8). The resource is hosted in sandstones as tabular bodies (roll front deposit type) with the uranium occurring as the oxide mineral coffinite.
Homestake Mining, now part of Barrick Gold (ABX-T, ABX-N), first acquired the project in 1967 and drilled 86 holes over the subsequent four years. With only a few higher-grade uranium intervals encountered, the project was dropped. Gulf Mineral Resources then tested the project in the late-1970s, drilling 71 holes, but returned the project to its owners.
In 1980, Midas International acquired the leases and commenced an exploration program that resulted in a significant discovery hole. It completed more than 500 drill holes over three years, eventually enticing Homestake to re-enter the venture. The major conducted metallurgical testing on the samples of core at its nearby mill and at Kerr McGee Nuclear’s mill with results indicating good leachability and recoveries averaging 90%. Homestake completed a feasibility study and mining plan but weakening uranium prices in the mid-1980s led to the closure of its activities.
Laramide acquired the project from Barrick Gold in late-2005 for a payment of US$1 million, commitments to further payments of US$2.75 million tied to certain milestones, expenditures of US$1.5 million over two years and a royalty of US$0.25 per pound of U3O8 on production in excess of 8 million lbs. of U3O8.
The company plans a 10-hole, 3,000-metre drill program at La Jara Mesa to confirm grades and extract material for additional metallurgical testing.
Laramide’s main focus is its Westmoreland copper-gold-uranium project in Queensland, Australia. The deposit hosts a JORC-compliant inferred resource of 17.4 million tonnes of 0.12% U3O8, about 46 million contained lbs. of U3O8.
With its 50.4 million shares outstanding, the company posts a $282-million market capitalization based on its recent $5.60 trading price. The stock has a 52-week range of $4.06-to-$8.50.
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