Laramide Resources Ltd.
TSX VENTURE : LAM

Laramide Resources Ltd.

March 21, 2007 12:05 ET

Laramide Intercepts 13 Feet of 0.719% U3O8 in La Jara Mesa Drilling; Appoints Paul Wilkens as New Independent Director

TORONTO, ONTARIO--(CCNMatthews - March 21, 2007) - Laramide Resources Ltd.(TSX:LAM) is please to announce results from its recently completed drill program at the La Jara Mesa Uranium Property located in the Grant's District of New Mexico. This program has returned encouraging results; of particular note are the findings from holes LR-12-5C: 13.0 feet of 0.719% U3O8 and LR-12-8C: 14.4 feet of 0.513% U3O8. Details of all drill results are included in the table below.

On February 18, 2007, Laramide concluded a nine hole core drill program on the La Jara Mesa uranium resource property, Cibola County, New Mexico, that had been acquired from Homestake Mining Company in November 2005. Assaying was completed by Energy Laboratories, Casper, Wyoming; and field supervision by Mr. N.M. Naiknimbalkar, Licensed Geological Engineer #540, Washington State, USA. The nine hole program totalled 6,393 feet drilled.

Drilling was undertaken to confirm earlier drill programs conducted in the 1980's when the La Jara Mesa discovery was made. At that time, five uranium resource areas were delineated, with the largest to date being the Dena deposit located in Sections 11 and 12, T12N, R9W, N.M.P.M.

Confirmation drilling was limited to the Dena deposit. Prior to the recent drill program, 376 holes, including 18 core holes, had been drilled in and around the resource area. The deposit is elongated north-south at approximately 2,500 feet long and 1,500 feet wide and is confined primarily to the lower two sands of the Poison Canyon member of the Morison formations of Jurassic Age.

The deposit dips to the south southeast with the base of the Poison Canyon sand lying at a depth of 627 feet below the surface at the north end of the resource area and at 690 feet at the south end. In all holes, core was taken from the Poison Canyon member to obtain material for assay and metallurgical testing. Four holes were extended through the underlying Westwater Canyon member of the Morrison formation. Core was recovered from the Westwater Canyon sand in three of the extended holes to review sand alteration and its potential for mineral development, as well as, obtaining core samples for mine planning and development studies.

Drill hole locations were not intended to twin previously drilled holes but were placed to confirm the general trend of previously identified resource zones. A map of the location of the current drill holes can be viewed on Laramide's web site.

Chemical analyses for uranium from core of the first seven holes of the nine holes drilled have been received. The remaining two holes are in process at Energy Laboratories. Utilizing a 0.05%U3O8 cutoff, the chemical assays are summaries as follows:



La Jara Mesa, Chemical U3O8 Assay Results
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Depth to
Coordinates(i) Intercept Thickness Grade
Hole # Northing Easting base (feet) %U3O8 Thickness Comments
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LR-12-1C 1,557,908 526,117 604 16.0 0.243 3.888 Upper
intercept
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623 10.2 0.251 2.560 Lower
intercept
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LR-12-2C 1,557,720 526,121 620 2.0 0.154 0.308 Severe
Core Loss
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LR-12-3C 1,557,281 525,915 621 8.2 0.161 1.320
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LR-12-4C 1,557,082 526,139 652 8.6 0.168 1.445
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LR-12-5C 1,556,676 526,327 678 13.0 0.719 9.347
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LR-12-6C 1,556,211 525,756 675 5.0 0.389 1.945
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LR-12-7C 1,555,880 525,984 Assays
Pending
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LR-12-8C 1,556,766 525,813 658 14.4 0.513 7.389
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LR-11-9C 1,556,709 525,476 Assays
Pending
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Seven Hole Average 9.7 0.364
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(i) New Mexico State Plane Coordinates
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All holes were drilled vertically. Laramide Resources Ltd. previously completed an independent National Instrument 43-101 technical report that addresses uranium mineral resources for its La Jara Mesa uranium property located in the Grant's mineral district of New Mexico, USA. (see Company release dated October 6, 2006). The mineral resource report estimates measured and indicated mineral resources totalling 7,257,817 pounds of uranium (U3O8) that are contained in 1,555,899 tons at an average grade of 0.23 per cent U3O8, and an additional 3,172,653 pounds of uranium (U3O8) contained in 793,161 tons at an average grade of 0.20 per cent U3O8 as inferred mineral resources on the property.

Peter Mullens VP-Exploration stated "We are pleased with the results from La Jara Mesa which have confirmed the high grade nature of the project. Currently Laramide is investigating options on how the project may be permitted and advanced to a production decision, including discussions with other parties to explore the possibility of a new, regional mill facility in the Grant's District. We believe the potential of New Mexico may be underappreciated by the market given that from 1959 through 1981 conventional production in New Mexico ranged from 9 to 19 million pounds of uranium per year, averaging nearly 13 million pounds per year. Moreover, in a June 2004 report, the US Energy Information Administration (EIA) stated that as of December 31, 2003, uranium reserves in New Mexico were estimated to be 341 million pounds U3O8 assuming forward costs of up to $50 per pound of U3O8. Clearly, given these historic production rates and EIA's estimate of available uranium resources, Laramide believes there is scope for a major revival of this important uranium producing district."

In an unrelated exploration development, Laramide is pleased to report that it will commence drilling imminently on its Sioux Uranium Project which is a greenfield exploration joint venture targeting a new roll-front style uranium deposit in the western United States. The program will consist of the initial 50 hole program outlined in the Company's news release of August 21, 2006 and this program will be expanded if results warrant. It was originally hoped to commence this drilling in Q4/06 but a combination of permitting delays and weather resulted in a decision to wait until this Spring so that the program could be logically carried out in its entirety without interruption.

The Company is also pleased to announce the appointment of Mr. Paul Wilkens to the Board of Directors. Mr. Wilkens holds an MBA from the University of Rochester and a Master of Science in Nuclear Engineering. Paul brings to the Company over 30 years experience with Rochester Gas and Electric Corporation (RG&E) where he served as President as well as in several other senior positions during his tenure. While with RG&E Paul provided direction and leadership to the company's electric generation including the RE Ginna and Nine Mile 2 nuclear power plants. While under his leadership, Ginna received commendations from the Nuclear Regulatory Commission for its engineering organization and from the Institute of Nuclear Power Operations for top performance.

Laramide Resources Ltd. ("Laramide") is a Toronto-based resource company specializing in the acquisition and development of advanced stage mineral properties. Laramide has a diverse portfolio of assets, all of which are leveraged to commodity fundamentals. The Company's lead project is the Westmoreland Project, Queensland, Australia.

National Instrument 43-101 disclosure:

The technical content in this news release has been read and approved by Peter Mullens, member of the Australian Institute for Mining and Metallurgy. Mr. Mullens is a qualified person as defined under 43-101 requirements.

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.

Shares Outstanding: 53,743,128

Contact Information

  • Laramide Resources Ltd. - Toronto, Canada
    Marc C. Henderson
    President
    (416) 599-7363
    or
    Laramide Resources Ltd. - Brisbane, Australia
    Peter Mullens
    Vice President Exploration
    +61 (7) 3831 3407
    Website: www.Laramide.com