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Message: Announces Updated NI 43-101 Compliant Resource Report on Westmoreland

Announces Updated NI 43-101 Compliant Resource Report on Westmoreland

posted on Apr 23, 2009 05:59AM
April 23, 2009
Laramide Announces Updated NI 43-101 Compliant Resource Report on Westmoreland
TORONTO, ONTARIO--(Marketwire - April 23, 2009) - Laramide Resources Ltd. (TSX:LAM) is pleased to results of an updated NI 43-101 compliant Technical Report ("Technical Report") completed by Mining Associates of Australia ("Mining Associates") on its Westmoreland uranium property located in North West Queensland, Australia. The results are as follows, with the Technical Report to be SEDAR-filed within the next thirty days.

Table 1: Westmoreland Resource
                                      U3O8 Uncut   U3O8 cut   Metal  Metal
Category       Deposit    Tonnes (t)          (%)        (%)    (kt)  (Mlb)
Inferred       Redtree    4,466,750        0.069      0.067     3.0    6.6
            Huarabagoo    2,406,000        0.116      0.109     2.6    5.8
             Junagunna    2,149,500        0.077      0.075     1.6    3.6

Total         Inferred    9,022,250        0.083      0.080     7.2   15.9

Indicated      Redtree   12,858,750        0.092      0.090    11.6   25.5
            Huarabagoo    1,462,000        0.092      0.083     1.2    2.7
             Junagunna    4,364,750        0.082      0.081     3.5    7.8

Total        Indicated   18,685,500        0.089      0.088    16.4   36.0

The primary focus of the 2008 drilling program was to upgrade existing Inferred uranium resources to Indicated resources. This objective was achieved, as Mining Associates has reported an Indicated mineral resource totaling 36.0 million pounds of uranium (U3O8) contained in 18.7 million tonnes at an average grade of 0.089% (U3O8), and an additional Inferred mineral resource totaling 15.9 million pounds (of uranium (U3O8) contained in 9.0 million tonnes at an average grade of 0.083 % U3O8 (on the property. All of the mineralization) occurs in flat and steep lying zones within 100 metres depth, with 60 % of the mineralization occurring above 30 metres depth. The flat lying mineralization is between 5 and 30 metres thick and lies between 5 and 30 metres below the surface. 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 "Additional drilling at Redtree improved the confidence of drill data and this, accompanied with a better geological understanding, resulted in a significant increase in estimation confidence resulting in a shift from Inferred to Indicated resource category. Diamond drill core assays from 165 Redtree drill holes comprising 8,836.7 metres were analyzed in the calculation. This increased confidence in both historical data and the geological model at Redtree prompted a re-evaluation of the geologically similar Huarabagoo area. This allowed areas of similar or tighter drill spacing at Huarabagoo to be moved from the Inferred to Indicated category."

Data available for the preparation of this report included both historic data developed by a number of major mining companies including Mount Isa Mines, Uranerz Australia Pty Ltd., Queensland Mines Ltd. and CRA (Rio Tinto) in addition to the drilling completed by Laramide Resources. A total of 1,339 drill holes for 84,877 metres of historical drilling along with 8,836.6 metres in 165 drill holes were used in the resource calculations. The resource categories are based on the statistical variance and overall drill spacing. The drill spacing for the Indicated resource is 30 to 50 metre spaced holes on 30 to 50 metre spaced lines. The drill spacing for the Inferred resource is 50 to 80 metre spaced drill holes on 60 metre spaced lines.

Peter Mullens, VP Exploration commented "We are pleased with the updated mineral resource estimate, as it achieved our goal of increasing the confidence interval. We also look forward to drilling other prospective areas over the strike length of the mineralization, as some of those areas have not been drill tested. There should be considerable upside in drilling those targets. There are also a further 36 mineralized zones within the Westmoreland area which at best have had early stage testing for mineral resources. Westmoreland continues to rank as a large undeveloped uranium deposit, with favourable grades compared to other large open cut deposits such as BHP Billiton's Olympic Dam in Australia (0.05 % U3O8) and Paladin's Langer Heinrich deposit (0.07 % U3O8) located in Namibia."

Work Performed

Laramide completed 8,836.7 metres of diamond drilling in 2008 at Redtree (165 diamond holes), providing 6,464 1/2 core samples for geochemical analysis. This drilling was designed to verify and improve the quality of previous drilling results. Domains for the Garee lens were revised with more emphasis on geological controls (i.e. stratigraphical) and removal of un-mineralized intervals from the estimation envelopes.

Extension of the Jack lens 150 metres to the north and 20 to the metres east. The splitting of upper Jack lens into two sub-domains allows extension of thin high-grade horizons to the west, within the mineralized horizon. The lower high-grade zone of the Jack lens has been better defined, with the addition of a moderate low grade envelope, and sharper definition of the eastern termination of mineralization along flat west dipping linear zone (dyke).

Parameters used to define the ore zones are:

- barren or very weakly mineralized based upon less than 0.02% U3O8

- mineralized - 0.02 to 0.05% U3O8

- well mineralized - 0.05 to 0.1% U3O8

- high grade - over 0.1% U3O8

Data Verification and Parameters for Estimate

The geological model method used was a sectional interpretation, from which 3D wireframes were created. A total of 686 drill holes (including 393 open hole percussion and 293 diamond cored) for 38,363.5 metres evaluated at Redtree Deposit, (nine duplicate holes were removed), 361 historical drill holes (including 48 open hole percussion, 28 RC and 285 diamond cored) for 32,320.3 metres were evaluated at Huarabagoo Deposit. Junnagunna was not re-evaluated.

Within the wireframe domains one metre composites were created, (missing samples or intervals were not included in the compositing), grade populations were analysed and appropriate top cuts were applied and varied for each domain.

Ordinary Krig interpolation was utilised to estimate grades into 20m x 20m x 4m blocks, the blocks were permitted to sub-block to 5m x 5m x 2m for volume determinations. Bulk density of 2.5 has been used throughout the model and no mining or metallurgical factors have been applied to the model. The resource is reported at a 0.02% cut-off grade.

Qualified Persons

The report is authored by Mr. David G Jones Bsc, Msc, FAusIMM, FIMMM, MAIME, MGSA and Mr. Andrew J Vigar BApp.Sc., FAusIMM, MSEG, who are independent consultants and Qualified Persons pursuant to NI 43-101. 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. Vigar has prepared in-depth reviews and/or resource estimates of a large number of deposits over the last 10 years, including the Ben Lomond and Maureen uranium deposits in Queensland and the Mt Gee uranium deposit in South Australia.

Mr. Jones was elected a Fellow of the Australian Institute of Mining and Metallurgy ("The AusIMM") in 1973 and Mr. Vigar in 1995.

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 Australasian 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 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (Australia) and is a Qualified Person as defined in NI43-101 (Canada).

It is noted that it is the current policy of the Queensland State Government not to allow the mining of Uranium deposits. This policy is currently under review in light of the changing domestic and international political situation.

National Instrument 43-101 Disclosure:

Laramide has implemented a quality control program at Westmoreland to ensure best practices.

The technical content in this news release has been read and approved by Mr. Andrew Vigar, the co-author of the mineral resource report on the Westmoreland Uranium deposit. Under the guidelines of the National Instrument 43-101, the Qualified Person for the Westmoreland Uranium Project is Mr. Peter Mullens, who is a member of the Australian Institute of Mining and Metallurgy. Mr. Mullens has reviewed and approved the technical content of this release.

About Laramide:

Laramide 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, Westmoreland, in Queensland, Australia, is 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.

To view a map of the Redtree Resource Area, please visit the following link:
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