Laramide Resources Ltd

Published : April 21st, 2016

Laramide Resources Announces Positive Results from the ...

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Canada | G Mexico | Junior | Mexico | Recovery | Storage | Target | Tax | Technology | Uranium | Utah | Zinc |

Laramide Resources Announces Positive Results from the Updated PEA on the Westmoreland Uranium Project, Australia

Listed (TSX:LAM; ASX:LAM)
ARBN 154 146 755

TORONTO, April 21, 2016/CNW/ - Laramide Resources Ltd. ('Laramide' or the 'Company') (LAM: TSX/ ASX) is pleased to announce results from the Company's updated Preliminary Economic Assessment ('PEA') for the Westmoreland Uranium Project, located in the North West Queensland Mineral Province, Australia. The independent study was completed by Lycopodium Minerals Pty Ltd. A copy of the PEA has been filed and available for viewing and download at www.sedar.com and the Company's website www.laramide.com.

Key Highlights of the PEA (at US$65/lb UO life of mine price)

  • Initial capital expenditures ('CAPEX') of US$268M plus US$49Mcontingency are estimated to construct the mine and a 2M tonne per annum (tpa) mill with a nameplate capacity of 4Mlb UO per annum;
  • Total sustaining capital of US$58M over the Life of Mine ('LOM');
  • Cash operating cost to average US$21.00/lbUOfor the first five years of operation and US$23.20/lb UO LOM;
  • Net Present Value ('NPV') at a 10% discount rate of US$598Mpre-tax andUS$400Mpost tax.
  • Internal Rate of Return ('IRR') of 45.4% pre-tax and 35.8% post tax with a capital payback estimated at 2.5 years post-tax.
  • Low 2.3:1 strip ratio for the first 5 years of operation and 4:1 LOM. Simple, open cut mining operation.
  • Mine scheduling allows best practice in-pit tailings storage to be employed without the requirement for a temporary tailings storage facility;
  • Opportunities have been identified to further reduce operating cost through reagent recycling. Further testwork is required to confirm this assumption before incorporating it into the process model.

Marc Henderson, President and Chief Executive Officer, commented, 'The PEA on Westmorelanddemonstrates the Project to be one of the best in Australiawith attractive economics. The PEA and the Churchrock acquisition reiterates Laramide's strategy of growing a portfolio of lower technical risk, low-cost uranium projects in stable political environments.'

Chief Operating Officer, Bryn Jones, said, 'Westmorelandhas always been a beacon in the Australian uranium project pipeline for me and this PEA has highlighted the low technical risk and robust nature of the project. The PEA has highlighted multiple opportunities to further improve the Project through process optimization and additional resource drilling which I look forward to investigating as the Project moves towards a Pre-Feasibility Study.'

PEA Study Details

The PEA contemplates a conventional open pit mining operation with a processing facility operating over a 13 year life at a throughput of 5,500 tonnes per day ('tpd'). The planned processing route consists of milling followed by conventional agitated tank leach with sulphuric acid with Continuous Ion Exchange ('CIX') employed for uranium recovery from the leach solution as represented in the Simplified Overall Treatment Flowsheet below.

Key Production and Financial Parameters

Mine life

13 years

Average annual throughput

2 million tonnes

Processing methodology

Tank Leach - CIX

Overall process recovery

95%

Open pit strip ratio (LOM)

4.0:1

Average diluted feed grade

840 ppm UO

Average annual production

3.52 million lbs UO

Total uranium recovered (LOM)

45.8 million lbs UO

Financial Parameters

Uranium price

US$65 / lb UO

USD:AUD exchange rate

0.70

Average operating cost

US$23.30 / lb UO

Initial CAPEX (including contingency)

US$316 million

Sustaining CAPEX (LOM)

US$58 million

Corporate tax rate

30%

Royalties

Qld State Government

5%

IRC

1% (capped at $10m indexed)

Inflation

Not included

Pre-tax

Post-tax

NPV (10% discount Rate)

US$598 M

US$400 M

IRR

45.4%

35.8%

Payback period

2.5 years

The previous PEA from 2007 was based largely on information acquired from Rio Tinto following the Westmorelandasset purchase. Since this time Laramide has completed several drilling campaigns, re-estimated the resource and has an improved knowledge of the metallurgical conditions required for cost effective uranium extraction on the Project. The PEA reflects current inputs including currencies, commodity price forecasts, fuel costs and other input costs.

The key differences between the 2007 PEA and the 2016 revised PEA are, as follows:

Parameter

2007 PEA

2016 PEA

Resource Size

48.5 Mlb

51.9 Mlb

Mill Design Tonnage

1.5 Mtpa

2 Mtpa

Overall Uranium Recovery

90.6%

95%

Namplate Prodution Capacity

3 Mlb/a

4 Mlb/a

Mine Life

12 years

13 years

Uranium Capture Technology

Solvent Extraction

Continuous Ion Exchange

Tailings Storage Technology

Traditional Tailings Dam

In-pit, dry stacked

The Project is located in the North West Queensland Mineral Province, an area impacted by the closure of the Century Zinc mine. The total direct employment generated by the Project will be in the order of 220 to 250 for the 13 year mine life.

Mineral Resource Estimates

The May 2009Mineral Resource estimate for Westmorelandhas been reviewed to ensure compliance with JORC 2012 and is restated as the 2016 Mineral Resource. The mineral resource estimate has been classified under the Canadian Institute of Mining, Metallurgy and Petroleum's (CIM) code of mineral classification and complies with National Instrument NI 43-101. The 2016 mineral resource estimate for Westmorelandis outlined in the following tables (refer to notes and other details in Section 14 of the NI43-101 report).

Westmoreland Mineral Resource Estimates - Indicated Category,2016

Resource Category

Deposit

Tonnes

Grade %

(UO)

M lbs UO

Indicated
cut-off 0.02% UO

Redtree (Garee)

12,858,750

0.09

25.5

Huarabagoo

1,462,000

0.08

2.7

Junnagunna

4,364,750

0.08

7.8

Subtotal

18,685,500

0.09

36.0

Note: reported tonnage and grade figures have been rounded off from raw estimates to the appropriate number of significant figures to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.

Westmoreland Mineral Resource Estimates - Inferred Category,2016

Resource Category

Deposit

Tonnes

Grade %

(UO)

M lbs UO

Inferred
cut-off 0.02% UO

Redtree (Garee)

4,466,750

0.07

6.6

Huarabagoo

2,406,000

0.11

5.8

Junnagunna

2,149,500

0.08

3.6

Subtotal

9,022,250

0.08

15.9

Note: reported tonnage and grade figures have been rounded off from raw estimates to the appropriate number of significant figures to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers.

The LOM production targets are based on approximately 70% indicated resources and 30% inferred resources. The inferred resources are predominantly scheduled in the latter stages of the mine life and have had mining factors applied. No reserves for this project have been stated at this time.

PEA Cautionary Statement

The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified Person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101. The information has been reviewed and approved by Bryn Jones, MMinEng, FAusIMM a Qualified Person under the definition established by National Instrument 43 101 and JORC. Mr. Jones is the Chief Operating Officer of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy.

The estimated mineral resources underpinning the production target are prepared by competent person in accordance with the requirements in Appendix 5A (JORC Code 2012). The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Andrew Vigar, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Vigar is a full time employee of Mining Associates Limited and is a consultant to Laramide Resources Ltd. Mr. Vigar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Vigar consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

To learn more about Laramide, please visit the Company's website at www.laramide.com.

About Laramide

Laramide is engaged in the exploration and development of high-quality uranium assets. Its wholly owned uranium assets are in Australiaand 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 Salin 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.

Forward-looking Statements and Cautionary Language

This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

SOURCE Laramide Resources Ltd.

Image with caption: 'Simplified Overall Treatment Flowsheet (CNW Group/Laramide Resources Ltd.)'. Image available at: http://photos.newswire.ca/images/download/20160421_C2472_PHOTO_EN_671502.jpg

PDF available at: http://stream1.newswire.ca/media/2016/04/21/20160421_C2472_PDF_EN_671504.pdf

For further information: Marc Henderson, President and Chief Executive Officer, Toronto, Canada +1 (416) 599 7363; Bryn Jones, Chief Operating Officer, Brisbane, Australia, P: (07) 3831 3407; Greg Ferron, Vice-President, Investor Relations, Toronto, Canada +1 (416) 599 7363

Read the rest of the article at www.publicnow.com
Data and Statistics for these countries : Canada | Mexico | All
Gold and Silver Prices for these countries : Canada | Mexico | All

Laramide Resources Ltd

EXPLORATION STAGE
CODE : LAM.TO
ISIN : CA51669T1012
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Laramide Res. is an exploration silver and gold company based in Canada.

Laramide Res. holds various exploration projects in Canada.

Its main exploration properties are WESTMORELAND, LA SAL and LAGOON CREEK in Australia and GOLIATH, LA JARA MESA and LARA in Canada.

Laramide Res. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 26.5 millions as of today (US$ 19.9 millions, € 18.0 millions).

Its stock quote reached its lowest recent point on January 11, 2002 at CA$ 0.01, and its highest recent level on January 05, 2007 at CA$ 9.07.

Laramide Res. has 112 590 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Financings of Laramide Resources Ltd
1/6/2012Completes Second Tranche of Private Placement
12/30/2011Completes Previously Announced Financing
12/19/2011Announces Proposed Private Placement
Project news of Laramide Resources Ltd
4/21/2016(Westmoreland)Announces Positive Results from the Updated PEA on the Westm...
6/18/2012(La Sal)Receives Positive Record of Decision and Permit for its La S...
10/11/2011(La Sal)s permitting status on its La Sal Project
7/27/2011(Westmoreland)Reports Exceptional Westmoreland Metallurgy Results and Comm...
5/16/2011Concludes Binding Joint Venture Term Sheet with Rio Tinto on...
6/29/2010Clears Title to Advance Permitting its La Sal Uranium Projec...
10/2/2008(Westmoreland)Drilling Results at Westmoreland Continue to Meet or Exceed ...
9/17/2008(Westmoreland)Resumes Westmoreland Drilling on Schedule ; Highlights Posit...
9/2/2008(Westmoreland)Releases Further Drilling Results and Prepares for a Second ...
8/5/2008(Westmoreland)Completes First Phase of Drilling at Westmoreland...
6/26/2008(Westmoreland)First Phase of Diamond Drilling at Westmoreland
6/19/2008(Westmoreland)Intersects Gold Mineralization at its Westmoreland Uranium
5/26/2008(Westmoreland)Adds Third Rig at Westmoreland
4/24/2008(Westmoreland)Intersects 58 Metres @ 0.12 % U3O8 at Westmoreland
4/1/2008(Goliath)TREASURY METALS INTERSECTS HIGH GRADE GOLD AT GOLIATH
2/15/2008(Westmoreland)Announces Northern Territory Joint Venture Drill Results
12/17/2007Files Independent Technical Reports
4/30/2007(La Jara Mesa)Intercepts 13 Feet of 0.719 % U3O8 in La Jara Mesa Drilling
4/17/2007(Westmoreland)Receives GRD Minproc Scoping Study on its 100% Owned Westmor...
3/21/2007(La Jara Mesa)News Release - Laramide Resources Ltd.
Corporate news of Laramide Resources Ltd
6/8/2016Laramide Resources announces results of annual meeting of sh...
5/24/2016Laramide Resources Provides Update on Rio Tinto Exploration ...
4/21/2016Laramide Resources Announces Positive Results from the Updat...
4/8/2016Laramide Resources Executes Definitive Share Purchase Agreem...
1/23/2016Laramide Resources Files Supplement To Information Circular
12/31/2015Laramide Resources Closes C$5M Loan from Extract Advisors
12/24/2015Laramide Resources Closes $1.6 Million Private Placement
12/1/2015Laramide Resources Agrees to C$5M Loan from Extract Advisors
8/25/2015Laramide Retains Lycopodium for updated Westmoreland Scoping...
3/13/2015Laramide Resources Closes Equity Financing
10/8/2014Laramide Resources Announces Consolidation of Interest in th...
10/6/2014Laramide Resources Announces Airborne Geophysical Survey on ...
9/2/2014Laramide Resources Ltd. Announces Ownership Interest of Glob...
5/22/2014Laramide Resources Announces Results of Voting at Annual and...
5/22/2014Announces Results of Voting at Annual and Special Shareholde...
3/31/2014Laramide Resources Appoints Bryn Jones as Chief Operating Of...
9/13/2013Welcomes Queensland“Action Plan”
8/15/2013announces institutional funding transaction with The Lind
5/31/2013Announces Results of Voting at Annual and Special Shareholde...
5/28/2013Reminder–Laramide Resources–Annual and Special Meeting of
4/26/2013to commence trading on ASX
4/15/2013adopts advance notice policy
1/31/2013launches secondary offering and ASX co-listing
1/23/2013CEO Progress Report
5/22/2012(La Jara Mesa)Receives Draft EIS and Updates Permitting Status for La Jara...
3/26/2012Comments on the Queensland State Election
1/17/2012CEO Update
6/7/2011(Lara)Invite to Laramide's Annual General Meeting
8/12/2008ANNOUNCES DETAILS OF SPIN-OFF
6/26/2008Treasury Metals Files Preliminary Prospectus for Initial Pub...
6/3/2008ANNOUNCES PRICING OF EQUITY FINANCING
2/13/2008announces 10% ownership of Sierra Minerals Inc.
1/22/2008SPIN OFF NON-URANIUM ASSETS TO TREASURY METALS INC.
9/20/2007Purchases 5.6 Million Shares to Own 12% of Khan Resources In...
4/30/2007Adopts Shareholder Rights Plan
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (LAM.TO)FRANKFURT (L4R.F)
0.235+2.17%0.142-2.74%
TORONTO
CA$ 0.235
08/16 16:54 -
2.17%
Prev close Open
0.230 0.225
Low High
0.225 0.240
Year l/h YTD var.
0.220 -  0.455 -47.19%
52 week l/h 52 week var.
0.220 -  0.495 -27.69%
Volume 1 month var.
71,372 -2.08%
24hGold TrendPower© : 7
Produces
Develops
Explores for Copper - Gold - Lead - Silver - Uranium - Zinc
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 12/8/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
2019-45.35%0.450.42
2018-8.51%0.520.24
201762.07%0.740.23
20163.57%0.380.18
2015-24.32%0.410.14
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 6.66+1.14%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 3.70-4.39%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 2.50+0.60%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+0.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 1.75-5.41%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.99-1.98%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.02+25.00%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 2.90+4.32%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.12-4.27%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 5.81-2.19%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.08+7.14%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.14+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.61-3.01%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 22.54+4.26%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.07+0.00%Trend Power :