VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 5, 2011) - STRATHMORE MINERALS CORP. ("Strathmore" or "the Company") (News - Market indicators)(OTCQX:STHJF) is pleased to announce final receipt of the Church Rock Scoping Study undertaken by Behre Dolbear and Company (USA), Inc. ("Behre Dolbear"). Behre Dolbear prepared a scoping study that evaluated the extraction of uranium by both In-Situ Recovery (ISR) and conventional underground techniques. The study concluded that the exploitation of Strathmore's Church Rock uranium resource is most economic using ISR methods. While the study presented several uranium price points and discount rate scenarios, using a pre-tax discount rate of 8% and uranium sales prices from US $65/lb to US $80/lb, the Net Present Value (NPV) varied from US $51 million to US $90 million.
The Scoping Study for the ISR case used David Fitch's NI 43-101 compliant Measured, Indicated & Inferred resource as outlined in his 2005 report entitled "Technical Report on the Strathmore Church Rock Uranium Property, McKinley County, New Mexico." (Table 1)
Table 1: Strathmore Minerals - Church Rock, New Mexico: NI 43-101 Resource Estimate
| Property |
Previous
Operator/Source:
Date of Resource
Estimate |
Resource
Classification |
Millions of
Tons |
Grade %
U308 |
Millions of
Pounds
U308 |
| Church Rock, New Mexico |
|
|
|
|
|
| Kerr McGee (1980) |
NI 43-101 Measured & Indicated |
6.2 |
0.10 |
11.8 |
| D. Fitch 43-101 (2005) |
NI 43-101 Inferred |
1.9 |
0.09 |
3.5 |
The NI 43-101 resource estimates used in this press release were taken from the NI 43-101 report entitled "Technical Report on the Strathmore Church Rock Uranium Property, McKinley County, New Mexico," dated December 20th 2005, and prepared by David C. Fitch, a qualified and independent person under National Instrument Policy 43-101. This report can be viewed in its entirety on the Company's website www.strathmoreminerals.com. It should be noted that mineral resources, which are not mineral reserves, do not have demonstrated economic viability as defined by the NI 43-101 guidelines. The Church Rock Scoping Study provides a positive preliminary assessment as an initial investigation of an ISR development scenario. It contains several economic and technical assumptions. In addition, it includes Inferred Mineral Resources, which do not have the geological certainty or level of confidence as to their economic feasibility that would enable it to be categorized in the mineral reserve category. Therefore it is not certain that the preliminary assessment will be realized.
Yearly production reaches 750,000 pounds/year. Ten million pounds are recovered at an estimated 65% recovery rate. Further details are available from the Scoping Study, which is available for review on Company's website, www.strathmoreminerals.com (Projects-Technical Reports) or on SEDAR, www.sedar.com.
While Strathmore has long recognized that the Church Rock deposit is a valuable asset in the Company's long-term project pipeline, the completion of this scoping study and its positive conclusion determining the viability of ISR mining will allow for the eventual preparation of a full feasibility study. In the months ahead, Strathmore will review its options for initiating an effective permitting and development plan for the Church Rock resource.
Behre Dolbear has operated as a global mining industry consultant by providing technical, financial, operational, managerial, and environment services since its founding in 1911. Their expertise in uranium includes in-situ recovery, surface and underground mining. Mr. Bernard J. Guarnera, Chairman of the Behre Dolbear Group, served as Senior Project Advisor for this study.
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".
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.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
ON BEHALF OF THE BOARD
David Miller, CEO
