Laramide Resources Ltd.

Laramide Resources Ltd.

October 23, 2006 09:31 ET

Laramide Announces Westmoreland Resource

TORONTO, ONTARIO--(CCNMatthews - Oct. 23, 2006) - Laramide Resources Ltd. (TSX:LAM) is pleased to announce that it has completed an independent National Instrument 43-101 technical report that addresses uranium mineral resources for its wholly owned Westmoreland Uranium Project located in Queensland, Australia. The report, which was authored by Mining Associates of Australia, is expected to be filed on SEDAR during the coming week and will also be accessible on the Company's website at

The mineral resource report estimates indicated mineral resources at Westmoreland totaling 15.6 million pounds of uranium (U3O8) that are contained in 8.0 million tons at an average grade of 0.088 per cent U3O8, and an additional 32.9 million pounds of uranium (U3O8) contained in 16.0 million tons at an average grade of 0.093 per cent U3O8 which are classified as inferred mineral resources. It should be noted that all of this mineralization occurs in flat and steep lying zones above 60 meters depth with much of the mineralization above 20 meters depth. The flat lying mineralization averages between 4 to 10 meters thick and lies between 5 and 20 meters below the surface. The steep mineralization is up to 50 meters thick and occurs from surface to 60 meters depth. Pitchblende is the main uranium mineralization and occurs within both the Westmoreland conglomerate and within altered steep dykes which acted as a reductant to precipitate the mineralization.

Mining Associates state in the report that "The resource estimates are suitable for use in the mine design process for an open pit operation."

Data available for the preparation of this report is historic data developed by a number of major mining companies including Mount Isa Mines, Uranerz Australia, Queensland Mines and CRA (subsequently Rio Tinto). A total of 1,339 drill holes (84,876 meters of drilling) were used in the resource calculations. The average drill spacing for the Indicated Resource was 30 to 50 meter spaced holes on 50 meter spaced lines. The average drill spacing for the Inferred Resource was 80 meter spaced drill holes on 60 meter spaced lines. With further drilling during 2007, it is anticipated that much of the Inferred Resource will be upgraded to the Indicated category. The uranium mineralization addressed in this report is found over a strike length of 8 kilometers by 1 kilometer wide and occurs principally within three separate deposits (Redtree, Huarabagoo and Junnagunna). Drilling has not yet taken place over the entire strike length of the mineralized structure which hosts the deposits. Consequently, considerable potential exists to expand the resource, both within the existing resource envelope, and on the additional 36 mineralized zones within the Westmoreland area identified by previous exploration work.

In the Summary section of the report Mining Associates state:

"Laramide has obtained a commanding strategic position in the uranium exploration industry in Australia, by securing a series of contiguous tenements that cover almost all the known uranium deposits in the Westmoreland area. Previous exploration has identified a series of significant potentially economic deposits that require relatively modest investment to advance their status to an indicated resource."

It should also be noted that the average grade of the Westmoreland deposit of around 0.09 per cent U3O8 is very favorable in comparison to other potential open cut deposits such as Olympic Dam in South Australia (0.05 % U3O8) or at Paladin's Langer Heinrich deposit located in Namibia (0.065 % U3O8).

Mining Associates have recommended that Laramide complete a further 35,000 meters of drilling to upgrade the resource to the Indicated Category. This work is estimated to cost $8 million and could be completed by the end of the 2007 field season.

43-101 Resource Calculation Completed by Mining Associates of Australia

Category Deposit Tons % U3O8 cut M lbs U3O8

Inferred Redtree 10,928,500 0.093 % 22.4
Huarabagoo 2,925,250 0.108 % 7.0
Junnagunna 2,149,500 0.075 % 3.6
Total 16,003,250 0.093 % 32.9

Indicated Redtree 3,672,250 0.096 % 7.8
Huarabagoo 0 0
Junnagunna 4,364,750 0.081 % 7.8
Total 8,037,000 0.088 % 15.6


The NI 43-101 report is dated October 16th, 2006 and is authored by David G. Jones Bsc, Msc, FAusIMM, FIMMM, MAIME, MGSA, who is an independent consultant and is a qualified person pursuant to the 43-101 guidelines. Mr. Jones has 41 years of experience in mining and exploration geology and has B.Sc in Geology from Adelaide University and a Masters of Science degree in geology from the same university. Mr. Jones has practiced as a professional geologist for the past 41 years in the field of mineral exploration. He has written a considerable number of Independent Geological Reports for both the TSX and ASX. During his career Mr. Jones has carried out exploration in 52 countries and supervised projects in 25 countries. His specific experience concerning Westmoreland is related to his position as Senior Geologist with Carpentaria Exploration Pty Ltd (a subsidiary of Mount Isa Mines, MIM) when he supervised mineral exploration projects in northwest Queensland and the Northern Territory including the MIM uranium leases at Redtree, part of Westmoreland.

Mr. Jones was elected a Fellow of the Australian Institute of Mining and Metallurgy ("The AusIMM") in 1973.

The information in the report that relates to Mineral Resources is based on information compiled by Mr. Andrew J. Vigar, who is a Fellow of the Australian Institute of Mining and Metallurgy (Melbourne) and a Member of the Society of Economic Geologists (Denver). Mr. Vigar is employed by Mining Associates Pty Ltd of Brisbane, Australia.

Mr. Vigar has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (Australia) and is a Qualified Person as defined in NI 43-101 (Canada).

National Instrument 43-101 disclosure:

The technical content in this news release has been read and approved by the author of the mineral resource report on the Westmoreland Uranium Project has been read and approved by the author of the report Mr. David Jones.

This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.

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Contact Information

  • Laramide Resources Ltd.
    Marc C. Henderson
    (416) 599-7363
    Laramide Resources Ltd.
    Peter Mullens
    VP Exploration/Corporate Development
    +61 (7) 3831 3407