Laramide proves up properties for gold spinoff

Last April, Laramide Resources (LAM-T, LMRXF-O) announced it would spin off its non-uranium assets into a new company.

To ready for the spinoff, the Toronto-based uranium company has proven up two properties in Canada — one in Ontario and one in B.C. — to better define the assets for investors.

The independent technical reports for both Thunder Lake, in northwestern Ontario, and Lara, 75 km north of Victoria on Vancouver Island, were completed by Caracle Creek International Consulting (CCIC).

Laramide says Lara will be the flagship property of the new company — which is slated to go public some time in the first quarter of next year.

CCIC took historical data — mainly from 500 holes drilled between 1984 and 1989 — and resampled the core to come up with a National Instrument 43-101-compliant resource estimate.

It puts indicated resources at 1.2 million tonnes grading 3.01% zinc, 32.97 grams silver, 1.05% copper, 0.58% lead and 1.97 grams gold per tonne. Inferred resources come in at 669,600 tonnes grading 2.26% zinc, 32.99 grams silver, 0.9% copper, 0.44% lead and 1.9 grams gold.

Lara is a volcanogenic massive sulphide deposit with anomalous gold and silver, with a strike length of roughly 1,180 metres and a true width of roughly 5 metres.

Thunder Lake has only a historical resource, completed by former owner Corona Gold (CRG-T, CRGAF-O) in 2001. The company estimated 2.97 million tonnes grading 6.47 grams gold for 618,707 oz.

Laramide bought Thunder Lake — formerly known as the Goliath gold property — from Corona and Teck Cominco (tck.b-t, tck-n) in October. Laramide will pay roughly $18.4 million in cash and will give Corona a 10% stake and Teck Cominco a 2.27% stake in the spinoff.

While specifics about the spinoff haven’t been announced, Laramide says it plans to distribute some of the new company’s shares to its current shareholders by way of a dividend.

In Toronto on the news, the company’s shares were off nearly 14% or 82 at $5.05. Laramide’s share price has fluctuated widely over the last year, moving as high as $16.70 and as low as $3.95.

In a statement posted on the company website, Laramide president and chief executive Marc Henderson said such volatility was tied to large hedge funds running hot and cold on uranium stocks.