Laramide Resources Ltd.

Laramide Resources Ltd.

November 24, 2006 12:10 ET

Laramide Commissions Minproc for Westmoreland Scoping Study

TORONTO, ONTARIO--(CCNMatthews - Nov. 24, 2006) - Laramide Resources Ltd (TSX:LAM) is pleased to announce that following the completion of a 43-101 compliant resource calculation in October of 2006, they have commissioned GRD Minproc Limited (GRD Minproc) to complete a Scoping Study of its Westmoreland uranium deposit located in Queensland Australia. GRD Minproc is an engineering contracting business specialising in the design, engineering and construction of mineral projects.

GRD Minproc has extensive and recent uranium expertise, with the company currently completing the construction of Paladin's Langer Heinrich project located in Namibia. They have also been commissioned by Paladin to complete the Bankable Feasibility Study on Paladin's Kayelekera Uranium project in Malawi.

CEO Marc Henderson stated that "This is an important next step for Laramide Resources. It confirms Laramide's confidence in the Westmoreland Project and the long term outlook for the price of Uranium. The Scoping Study will allow us to evaluate the economic potential of Westmoreland and should provide a development path forward for the project when the necessary policy changes are made in Queensland to permit mining of uranium."

The study will comprise:

Stage 1

Review of historical data
Identify and appoint subcontractors (hydrology, environmental, tailings)
Identify process concept

Stage 2

Plant site assessment
Throughput optimisation (plant sizing)
Preliminary mine planning and scheduling
Infrastructure concepts (power, water, tails disposal)
Estimated capital cost and operating costs
Pre tax cash flow model
Study Report
Project animation

The Scoping Study capital and operating costs will be determined to a nominal accuracy of plus or minus 35 %, commensurate with the conceptual nature of the available information.

It is anticipated that the study will be completed in the first quarter of 2007.

Westmoreland is an unconformity style uranium deposit located in northwest Queensland. It has a 43-101 compliant mineral resource estimate of 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 in the Indicated category 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 as inferred mineral resources on the property. 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.

A total of 1339 drill holes for 84,876 meters of drilling was used in the resource calculations.

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. - Toronto, Canada
    Marc C. Henderson
    (416) 599-7363
    Laramide Resources Ltd. - Brisbane, Australia
    Peter Mullens
    VP Exploration Toronto
    +61 (7) 3831 3407