Laramide cuts wide uranium at Westmoreland (April 14, 2008)

VANCOUVER — The latest round of drilling by Laramide Resources (LAM-T, LMRXF-O) at its Westmoreland uranium project in Australia’s Queensland state continue to confirm historic results and has returned some higher-grade sections.

Hole WDD07-3 cut 66 metres (from 10 metres depth) grading 0.29% U3O8, including a 37-metre section of 0.45% U3O8, in the Garee Lens that forms part of the Redtree deposit at Westmoreland.

Several other holes in the lens returned intercepts from roughly 30- 50 metres in width that averaged from 0.14-0.34% U3O8.

“The results confirm continuity of mineralization identified in historical drilling and also indicate the potential for high-grade lenses within the broader mineralized envelopes,” stated Peter Mullens, Laramide’s vice-president of exploration, in a news release.

The company is in the midst of a 12,000-metre drill program at Westmoreland anticipated to run until mid-year. In unison with its drilling, Laramide is launching initial metallurgical studies and mine engineering programs at the project.

Situated in the northwestern corner of Queensland, uranium mineralization at Westmoreland was first discovered in the mid-1950s by Mount Isa Mines. The project was more recently held by Rio Tinto (RTP-N, RIO-L) from 1990-2000. Rio completed a prefeasibility study evaluating three deposits (Redtree, Huarabagoo and Junnagunna) on the property.

Rio Tinto’s studies indicated uranium mineralization was readily amenable to acid leaching — with low acid consumption — yielding high uranium recoveries.

Studies from 2006 reviewed an indicated resource estimate of 8 million tonnes grading 0.088% U3O8 (roughly 15.6 million contained pounds U3O8) plus another 16 million inferred tonnes of 0.094% U3O8 for about 32.9 million contained pounds U3O8.

Scoping studies have projected that a conventional open-pit operation with acid-leach processing could produce around 3 million lbs. U3O8 annually — over an 11-year mine life — with production costs of about US$20 per lb. U3O8. Direct and indirect capital expenditures are forecast at US$214 million with payback of less than two years.

Laramide’s current work programs will provide the basis for a planned feasibility study.

Under current policy, uranium mining in Australia is regulated at both federal and state levels. The federal government controls uranium exports while the states handle permitting. Last year, the Australian Labor Party abolished its 25-year-old “Three Mine Policy” — which capped the number of operating mines in the country — opening the door for new uranium mines to be built.

Laramide also holds uranium projects in the Grants district of New Mexico. Its La Jara Mesa property hosts a measured and indicated resource of about 1.6 million tonnes grading 0.23% U3O8 (about 7.3 million contained pounds U3O8) plus 790,000 inferred tonnes at 0.2% U3O8 or roughly 3.2 million contained pounds U3O8.

The company’s La Sal uranium project, in the White Mesa district of Utah, was the subject of a positive feasibility study by Homestake Mining in the late 1970s but was shelved due to collapsing prices for the metal. The deposit has underground workings in place and could probably be fast-tracked into production once permits are in place.

The aspiring uranium producer also plans to spin off its non-uranium projects into a new company, Treasury Metals, that will hold the Thunder Lake property, in northwestern Ontario, and Lara, about 75 km north of Victoria on Vancouver Island.

Lara is a volcanogenic massive sulphide deposit with an indicated resource of 1.1 million tonnes grading 3% zinc, 33 grams silver per tonne, 1.05% copper, 0.6% lead and 2 grams gold using a 1% zinc cutoff grade. Inferred resources come in at 670,000 tonnes grading 2.3% zinc, 33 grams silver, 0.9% copper, 0.44% lead and 1.9 grams gold.

Thunder Lake — formerly known as the Goliath gold property — has a historic resource (not compliant with National Instrument 43-101) tabled in 2001 by former owner Corona Gold (CRG-T, CRGAF-O) of 2.97 million tonnes grading 6.47 grams gold for 618,707 contained ounces. Laramide bought Thunder Lake from Corona and Teck Cominco (TCK. B-T, TCK-N) in late 2007. Laramide will pay roughly $18.4 million in cash and give Corona a 10% stake and Teck Cominco a 2.27% stake in the spinoff company.

Shares of Laramide have recently traded around $3.20, giving the company a $188-million market capitalization based on its 58.8 million shares outstanding. The stock has a 52-week trading range of $2.97-15.75.