Strathmore Minerals Corp.
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Strathmore Minerals Corp.

July 21, 2011 10:40 ET

Strathmore Targets Additional Gas Hills, Wyoming Mineral Potential of 35 to 68 Million Pounds U308 With Completion of Initial NI 43-101 Technical Report

KELOWNA, BRITISH COLUMBIA--(Marketwire - July 21, 2011) - Strathmore Minerals Corp. ("Strathmore" or "the Company") (TSX:STM)(OTCQX:STHJF) is pleased to announce that its wholly-owned subsidiary Strathmore Resources (US) Ltd. has completed and SEDAR-filed an independent National Instrument 43-101 Technical Report for the Gas Hills Uranium Properties. The Gas Hills Properties comprises ~ 35,000 acres in the Gas Hills Uranium District of central Wyoming. Historical uranium production in the Gas Hills exceeded 100 million pounds making it the second largest uranium mining region in the USA. Strathmore has been actively advancing its mine permit application for submittal to the State of Wyoming and a Source Materials License application to the US Nuclear Regulatory Commission.

The following tables summarize the Technical Report's new NI 43-101 mineral resources, in addition to the remaining non-compliant historical resources, and a significant potential mineral target based on a range of quantities and grades:

Gas Hills Uranium Properties: Summary of NI 43-101 Compliant Resources, Remaining Historical Resources, and Potential Mineral Target

Mineral Resources Tons Pounds Grade %U3O8
NI 43-101: Measured 3,745,824 7,559,497 0.101
NI 43-101: Indicated 1,785,985 3,171,811 0.089
NI 43-101: Measured + Indicated 5,531,809 10,731,308 0.097
NI 43-101: Inferred 957,616 1,234,164 0.064
Historic: Measured + Indicated 7,007,147 10,075,116 0.072

The NI 43-101 mineral resource estimates, and historic resources, for the Gas Hills Uranium Properties were taken from the report titled: Technical Report on the Gas Hills Uranium Project, Fremont and Natrona Counties, Wyoming dated July 20 2011, and prepared by Charles D. Snow, a qualified and independent person under National Instrument Policy 43-101. It should be noted that NI 43-101 compliant mineral resources are not mineral reserves and do not have demonstrated economic viability as defined by the NI 43-101 guidelines. Furthermore, the historical resource estimates presented herein were completed prior to the implementation of the NI 43-101 requirements. Given the extensive mineral production in the Gas Hills (100 million pounds) and the experienced companies and the quality of their historic work completed, Strathmore believes the reported historic resource estimates to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify these historic resources as current mineral resources, and the Company is not treating the historic resources as current; hence, they should not be relied on.

Potential Mineral
Target
Low Average
(pounds)
Mean (pounds) High Average
(pounds)
Beaver Rim / South Gas Hills 29,400,000 40,838,000 55,539,000
Main Gas Hills Area 5,949,000 9,289,000 12,730,000
Total Potential 35,349,000 50,127,000 68,269,000

The estimate of the potential mineral target is pursuant to NI 43-101 guidelines, Section 2.3 (2), which states that "subject to the provisions thereof, an issuer may disclose the potential quantity and grade, expressed as ranges, of a target of further exploration". The potential quantity and grade is conceptual in nature and does not meet the NI 43-101 classification of a "measured", "indicated" or "inferred" mineral resource. There has been insufficient exploration to define NI 43-101 mineral resources in the areas of proposed potential mineral targets and it is uncertain if further exploration will result in the targets being delineated as a mineral resource.

The Gas Hills Properties technical report was prepared by Charles D. Snow, Certified Professional Geologist (CPG #1064, Wyoming), who is a qualified person under National Instrument Policy 43-101. Mr. Snow has over 50 years of uranium exploration and mine development experience (Utah International/Pathfinder), most notably in the Gas Hills where he was one of the first to describe the original concepts of modern roll-front uranium deposits from geologic studies and mine development.

In the technical report for the Gas Hills Uranium Properties, Mr. Snow details the geology, uranium mineralization, exploration, historic resource estimates, mine development and production history of the District, in addition to Strathmore's previous and current development and permitting activities. The estimated resource calculation is discussed in the following three important segments:

  1. The report provides for a Measured, Indicated and Inferred NI 43-101 compliant mineral resource calculation for those areas where Strathmore is active completing confirmation drilling and permitting activities.
  2. The report highlights Strathmore's remaining non-compliant historically-defined resources.
  3. The report provides guidance for potential mineral targets within Strathmore's Gas Hills project area of an additional 35 million to 68 million pounds eU3O8 (equivalent uranium).

1. NI 43-101 Mineral Resources

The technical report provides new NI 43-101 mineral resource estimates for several properties where Strathmore acquired the historic drill data and later confirmed mineralization by drilling. These areas include George-Ver, Day Loma, Loco-Lee, and the Rock Hill deposits. A NI 43-101 compliant resource completed for the Jeep Property in June 2007 was not updated for the report.

For the areas where Strathmore is currently active, the report provides a Measured and Indicated resource estimate of 5,531,809 tons at an average grade of 0.097% eU3O8 for a total of 10,731,308 pounds. An additional 957,616 tons averaging 0.064% eU3O8 for a total 1,234,164 pounds is classified as an Inferred mineral resource. The following two tables provide further details on the quantity and grade for each Property's mineral resource category:

Gas Hills Uranium Properties: NI 43-101 Measured, Indicated & Inferred Resource Estimates

Measured + Indicated Resources
Property Tons Pounds Grade %
Day Loma 1,995,613 5,685,400 0.142
George-Ver 1,108,655 1,757,370 0.079
Loco-Lee 1,213,807 1,557,223 0.064
Rock Hill 897,098 1,247,920 0.070
Jeep* 316,636 483,395 0.076
Total M&I 5,531,809 10,731,308 0.097
Inferred Resources
Property Tons Pounds Grade %
Day Loma 174,335 313,759 0.090
George-Ver 444,222 548,656 0.062
Loco-Lee 158,950 180,325 0.057
Rock Hill 27,347 23,421 0.043
Jeep* 152,762 168,003 0.055
Total Inferred 957,616 1,234,164 0.064
*Jeep NI 43-101 technical report completed June 3, 2007.

For the mineral resource estimates, polygons were constructed by using perpendicular bisectors halfway between adjacent drill holes (also called area of equal influence, "AOI"). This method was employed by both Federal-American and Utah International/Pathfinder Mines for defining ore reserves and mine planning. Both companies mined a combined total of approximately 70 million pounds of uranium in the Gas Hills during its historical production period between the 1960s-1980s.

Uranium content was previously calculated using industry standards from gamma-ray logs for each hole by converting counts per second to % eU3O8. A factor of 16 cubic feet per ton was used for the ore in addition to varying grade and thickness cutoffs depending on the depths of the projected open-pit or in-situ recoverable resources. The AOI of each polygon was limited by the position of adjoining drill holes, the property boundary, mined areas, and, if necessary, the maximum capped size of the resource categories.

2. Gas Hills Uranium Properties: Previously Reported Historical Resources

Strathmore controls other deposits in the Gas Hills with previously reported historic Measured and Indicated mineral resources that are not NI 43-101 compliant. These areas include the Amazon, Andria, Bullrush, Frazier Lamac, Sunset, and a portion of the Loco Lee deposit where data was insufficient to upgrade to a NI 43-101 compliant category. A historical resource estimate was also identified for the Badlands area, which was not included in earlier estimates provided by the Company. The Resource Table on Strathmore's website: www.strathmoreminerals.com/s/ResourceTable.asp updates these new resource estimates.

The combined historic Measured and Indicated mineral resource estimate for these deposits is 7,007,147 tons grading 0.072% for a total of 10,075,116 pounds eU3O8. It is the Company's intent to upgrade the resource estimates to NI 43-101 compliant categories, as historic databases are acquired and/or confirmatory drilling is completed. The following table highlights Strathmore's remaining historic Measured and Indicated resources on the Gas Hills Project:

Gas Hills Uranium Properties: Remaining Historical Measured & Indicated Resources (not NI 43-101 Compliant)

Property Tons Pounds Grade %
Amazon 284,572 365,019 0.064
Andria 739,565 949,100 0.064
Badlands 162,467 215,674 0.066
Bullrush 1,735,030 2,306,052 0.066
Frazier-Lamac 696,327 1,522,000 0.109
Loco-Lee 1,994,262 2,904,895 0.073
Sunset 1,394,924 1,812,376 0.065
Total Resource 7,007,147 10,075,116 0.072

3. Gas Hills Uranium Properties: Potential Mineral Targets

Strathmore controls ~35,000 acres in the Gas Hills. The Company's primary focus has been in the Main Gas Hills Area where shallow mineralization has been defined by open-pit mine development plans prepared by previous producers in the District. However, the extensive Beaver Rim Area to the south, which was earlier believed to exhibit excellent potential for further exploration, may actually have a greater development potential. Previously believed to be an unexplored area, new historical information learned by the Company, has demonstrated that significant exploration programs were carried out.

In addition to the NI 43-101 compliant and historic resource estimates, Mr. Snow has been able to estimate a potential mineral target for the Gas Hills Properties of between 35 million and 68 million pounds eU3O8. This potential estimate is pursuant to NI 43-101 guidelines, Section 2.3 (2), which states that "subject to the provisions thereof, an issuer may disclose the potential quantity and grade, expressed as ranges, of a target of further exploration of a potential mineral deposit that is to be the target of further exploration".

Mr. Snow's conceptual model allows for potential mineral targets for areas of projected frontal trends in the main Gas Hills mining area (5.9 to 12.7 million pounds eU3O8) and for Strathmore's extensive Beaver Rim holdings (29.4 to 55.5 million pounds eU3O8). The Beaver Rim area is immediately south of the main Gas Hills and historical drilling has demonstrated that the uranium roll-front deposits trend south from the main Gas Hills under Beaver Rim.

Main Gas Hills Area: Potential Mineral Target

In the main area of the Gas Hills, where previous mining produced 100 million pounds uranium, potential mineral targets were estimated for potential mineralized trends at four Strathmore properties: the Antelope trend at George-Ver, Bullrush West-29, Day Loma SE Extension, and the Jeep South Extension. For these four areas, projected ranges for trend lengths (2,100 to 7,920 feet) and widths (150 to 400 feet) were based on drill hole location maps, aerial photographs taken during the height of past mine development, and onsite inspections of the former drill sites. A range of grade percents (0.064 to 0.239% eU3O8) was based on compliant or historic grade averages for nearby deposits and a range of thickness (5.6 to 30 feet) was based on historic resource reports, the author's experience, and gamma log interpretations. The District historic average of 16 cubic feet per ton ore was used, as was the assumption the mineralization is in equilibrium.

The following table provides an estimated range of potential mineral targets for the Main Gas Hills Area.

Gas Hills Uranium Properties: Potential Mineral Targets in Main Gas Hills Area

Potential Mineral Target Low Average (pounds) Mean (pounds) High Average (pounds)
Antelope Trend, George-Ver 1,877,000 3,136,000 4,372,000
Bullrush, West-29 1,260,000 2,107,000 2,953,000
Day Loma, SE Trend 1,969,000 2,804,000 3,764,000
Jeep, South Extension 843,000 1,242,000 1,641,000
Potential Mineral Target 5,949,000 9,289,000 12,730,000

While there is no absolute certainty that the uranium roll fronts of similar size or grade extend onto these four areas, the quality of historical exploration and development work completed, the documented uranium production histories of several mining companies that operated in the District, in addition to the extensive exploration, development and mining experience in the Gas Hills Uranium District by the Company's technical team suggest otherwise.

Mr. Snow further noted, "In the areas of previous mining in the main Gas Hills District, Strathmore drilled several monitor wells on the George-Ver and Day Loma properties; holes that intercepted ore grade mineralization outside of areas previously tested by drilling. With further drilling targeting those areas between historically defined deposits, additional resources may be discovered".

Potential Mineral Targets, Beaver Rim/South Gas Hills Properties

The Beaver Rim area comprises ~ 16,000 acres, and is located immediately south of the main Gas Hills area. It is an eroded escarpment approximately 400 feet higher in elevation than the main Gas Hills area. Because of this additional elevation, drilling depths were greater than the shallow deposits to the north resulting in limited historical exploration. It is estimated that ~1,000-2,000 drill holes were drilled in the area. No uranium mine production occurred here. While there is no absolute certainty that the uranium roll fronts of similar size or grade are present, it is believed roll-front trends extend onto a portion of Strathmore's Beaver Rim from Cameco's adjacent ground to the north-east where they are actively permitting to mine by ISR methods.

Based on aerial photographs, historic resource reports, available gamma logs and drill hole maps, Mr. Snow estimated a range of uranium grades (0.180 to 0.340% eU3O8) and a trend width (75 feet) and thickness (15 feet) for the projected roll-front deposits in the Beaver Rim area. Twenty-two miles of potential trend was based on the pattern and spacing of the former drilling and the amount of land claims held by Strathmore at Beaver Rim. The district historic average of 16 cubic feet per ton ore was used, as was the assumption the mineralization is in equilibrium.

The following table provides an estimated range of potential mineral targets for the Beaver Rim:

Gas Hills Uranium Properties: Potential Mineral Targets for Beaver Rim

Beaver Rim Properties Low Average (pounds) Mean (pounds) High Average (pounds)
Potential Target 29,400,000 40,838,000 55,539,000

Gas Hills Uranium Project Technical Report Summary

Mr. Snow concluded, "From a review of all data, it is concluded that the development drilling, gamma log interpretation, map posting, and the new mineral resource calculations presented herein are consistent when compared to the historical resources calculated by the former mining operators for a portion of the Project" …………… "All told, Strathmore's Gas Hills Uranium Project has significant potential to drill and discover additional uranium deposits." And he has projected a target of 36 million to 68 million pounds eU3O8 from both drilling in and amongst the known deposits, and along trend into those areas of sparse drilling at Beaver Rim".

Lastly, Mr. Snow notes, "The Strathmore Gas Hills Uranium Project is one of significant merit and justifies additional work". He recommends Strathmore continue its mine and mill permitting activities and work towards a full feasibility study to determine the economics of the project. A budget of $3.2 million was recommended to carry out this work, in addition to the $3 million budgeted by Strathmore for ongoing activities currently underway.

The NI 43-101 technical report for the Gas Hills Uranium Project can be viewed in its entirety on the SEDAR website www.sedar.com and the Company's website www.strathmoreminerals.com.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by David Miller, Chief Executive Officer for Strathmore Minerals Corp., a Qualified Person under National Instrument 43-101.

Note: Grade % eU3O8: Equivalent grade % as determined by Industry standard downhole geophysical logging equipment. Strathmore owns a Century Geophysical Logging Truck with a suite of logging tools including gamma-ray, spontaneous potential, and resistivity. The Company's logging tools are routinely calibrated at the U.S. Department of Energy's Test Pits located in Casper, Wyoming.

STRATHMORE MINERALS CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of advanced uranium properties in the United States. Headquartered in Vancouver, British Columbia with a branch administrative office in Kelowna, the Company also has a U.S. based Development Office in Riverton, Wyoming and a Government, Regulatory & Environmental Affairs Office in Santa Fe, New Mexico. STRATHMORE MINERALS CORP. Common Shares are listed on the TSX under the symbol "STM" and trade on the OTCQX International electronic trading system in the United States under the symbol "STHJF".

This news release contains "forward-looking information" that is based on Strathmore Minerals Corp.'s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Strathmore's exploration and development plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Strathmore's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the historical resource estimates, the work expenditure commitments; the ability to raise sufficient capital to fund future exploration or development programs; changes in economic conditions or financial markets; changes in input prices; litigation; legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain permits required in connection with maintaining, or advancing projects; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Strathmore Minerals Corp. disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

David Miller, CEO

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