Laramide Resources Ltd.
TSX : LAM

Laramide Resources Ltd.

April 29, 2008 07:30 ET

Laramide Submits Plan of Operations for Underground Development and Mine Production at La Jara Mesa, Grants District, New Mexico

TORONTO, ONTARIO--(Marketwire - April 29, 2008) - Laramide Resources Ltd. (TSX:LAM) is pleased to report the submission to the USDA Forest Service ("Forest Service"), Department of Agriculture, of plans to amend its current La Jara Mesa Uranium Project plan of operations. The proposed amendment seeks permits to proceed with an underground development program that will construct dual parallel inclines and an escape raise to access the body of mineralization from underground. From underground in the mineralized zone, Laramide proposes to conduct mapping, longhole drilling with gamma probing, test mining and collection of bulk samples (approximately 40,000 - 50,000 tons) for metallurgical and mill compatibility studies. The program is expected to take roughly 18-24 months to complete and, assuming the findings of development work confirm the positive economic promise of the deposit, Laramide will transition to underground mine production.

Laramide purchased La Jara Mesa from Homestake Mining Company ("Homestake") in 2005. The mineral resource estimated for La Jara Mesa (2006, Homestake) estimates measured and indicated mineral resources of 7,257,817 pounds of uranium (U3O8) that are contained in 1,555,899 tons at an average grade of 0.23% U3O8, and an additional inferred resource of 3,172,653 pounds of uranium (U3O8) contained in 793,161 tons at an average grade of 0.20% U3O8. Homestake filed a permit to develop La Jara Mesa with Forest Service in June 1984, and was granted approval in October 1984. Declining uranium prices at the time led Homestake to curtail their development plans and notify Forest Service of their suspension of operations. In early 1988, Homestake's subsidiary resumed its interest in La Jara Mesa as uranium price trends improved, and permits were once again approved by Forest Service in 1988; subsequently, however, uranium prices declined again, and Homestake suspended activities for La Jara Mesa, selling it to Laramide in 2005.

Laramide management believes that the current proposed amendment mitigates risk by the following measures:

1) the plan conforms to the original Homestake plans, which received Forest Service approval twice in 1984 and 1988;

2) All work is proposed to be conducted in a "dry" environment located at elevations above the water table, which means groundwater is not impacted;

3) No on-site mill or tailings facilities are planned for the site, as mineralized material is proposed to be transported by truck to neighbouring mills.

Marc Henderson, CEO commented, "We are pleased to commence this process with the Forest Service, and look forward to initiating the dialogue on getting La Jara Mesa approved for development and eventual production. We have posted the full Plan of Operations Amendment on our website www.laramide.com, and will continue to update shareholders as the process evolves."

ABOUT LARAMIDE:

Laramide Resources is engaged in the exploration and development of high quality uranium assets. Its wholly owned uranium assets are in Australia and the United States. Laramide's portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project is Westmoreland, in Queensland, Australia, one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico and La Sal in the Lisbon Valley district of Utah. Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.

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.

Contact Information

  • Laramide Resources Ltd.
    Flora Wood
    Investor Relations
    (416) 599-7363
    or
    Laramide Resources Ltd.
    Marc Henderson
    CEO
    (416) 599-7363
    Website: www.Laramide.com