Strathmore Updates Gas Hills Drilling Activities
KELOWNA, BRITISH COLUMBIA -- (Marketwire) -- 10/03/12 -- Strathmore Minerals Corp. (TSX: STM)(OTCQX: STHJF) ("Strathmore" or "the Company") is pleased to update drilling activities as part of the Company's ongoing Gas Hills 2012 Phase I US $8 million exploration, development, and permitting program. The goal of the drill program is to verify and expand known historical resources in the Main Gas Hills Area and initiate exploration drilling in the prospective Beaver Rim Area to the south. Strathmore initiated confirmation and exploration drilling, including core drilling (see press release dated June 26, 2012), subsequent to the November 2011 cutoff date of data analysis for the Gas Hills NI 43-101 technical report filed on August 29th, 2012. The Company intends to update this report and the current resource estimate on completion of the drill program later this year, and after receipt of all results, including core assays. Drilling is continuing in several areas within the Gas Hills in an effort to extend mineralization into previously unexplored ground that exhibits significant potential for discovering new roll-front uranium mineralization within favourable sandstone targets.
David Miller, CEO and Chief Geologist for Strathmore commented, "Results are confirming the shallow mineralization delineated by previous operators and further demonstrate the potential for growing these deposits beyond their historical mineralized boundaries."
Table 1 summarizes the program to date which includes the completion of 216 drill holes totalling 58,880 feet on the George-Ver, Day Loma, Bullrush, Loco-Lee, and Rock Hill Properties within the Main Gas Hills Area.
Tab1e 1: Main Gas Hills Drill Program Summary
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# of PFN Holes
with greater
Main Gas Hills # of Drill Total Footage # of Cored than or equal
Property Holes Drilled Holes(i) to 0.50 GxT
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Bullrush 63 17,540 3 15
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Day Loma 22 10,290 0 9
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George-Ver 48 15,570 5 15
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Loco-Lee 59 9,185 7 20
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Rock Hill 24 6,295 4 11
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Total 216 58,880 19 70
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Notes: (i) # of cored holes included in total # of holes drilled.
Main Gas Hills Phase I Drilling Highlights
The following summarizes select Prompt Fission Neutron Tool (PFN) results for the Loco-Lee, George-Ver, Bullrush, Day Loma, and Rock Hill Properties in the Main Gas Hills area. Complete PFN and Gamma probe results for all drill holes completed on each property have been compiled in table form, and posted to the Company's website. All tables can be referenced under the PFN Measurements, Gamma Measurements, & Assay Results tab at www.strathmoreminerals.com/s/GasHills.asp. Area maps have also been posted.
Loco-Lee
Drilling targeted an area of the property where an open-pit was designed by Federal American Partners (FAP) in 1982. FAP completed approximately 1,800 drill holes. However, Strathmore was only able to purchase a data library that included approximately 650 gamma logs from a third party in 2010. Drilling focused on the east side of the historical designed pit where data was not available. Several holes intersected significant mineralization. Some of the best results include:
Hole LLS-35: 25.5' of 0.16% PFN U3O8; GT 4.13
Hole LLS-38: 31.0' of 0.11% PFN U3O8; GT 3.39
Hole LLS-51 Core: 32.5' of 0.10% PFN U3O8; GT 3.27
Hole LLS-52 Core: 33.5' of 0.07% PFN U3O8; GT 2.27
Hole LLS-53 Core: 38.0' of 0.10% PFN U3O8; GT 3.80
George-Ver
Confirmation core drilling was carried out to confirm the historical drilling/gamma interpretations, necessary to generate data for the preparation of a current mineral estimate.
Hole GVS-47 Core: 26.0' of 0.21% PFN U3O8; GT 5.50
Hole GVS-44 Core: 32.5' of 0.08% PFN U3O8; GT 2.58
Hole GVS-56: 26.0' of 0.04% PFN U3O8; GT 0.96
Bullrush
The majority of drilling tested an area known as the BULLRUSH WEST-29 exploration target. This area was previously explored by Union Carbide in the early 1980s for potential open-pit production. Drilling was carried out over an area of 2,400 ft (north-south) X 1,200 ft (east-west). Targeted uranium mineralization is at shallow depths of approximately 200-220 feet deep.
Hole BRS-51: 9.5' of 0.14% PFN U3O8; GT 1.34
Hole BRS-49: 21.0' of 0.05% PFN U3O8; GT 1.05
Hole BRS-70 Core: 30.5' of 0.04% PFN U3O8; GT 1.22
Day Loma
Exploration drilling was carried out to the northeast of the historically mined open-pits, successfully extending roll-front mineralization approximately 400 feet into this previously untested ground. Additional confirmation drilling was carried out in historically drilled locations, with washout of select historical drill holes to confirm mineralization discovered by previous operators.
Hole DLS-37: 20.5' of 0.09% PFN U3O8; GT 1.75
Hole DLS-46: 8.5' of 0.10% PFN U3O8; GT 0.88
Rock Hill
Core drilling was conducted across a wide area of the Rock Hill Property to confirm available historical results. In addition, several historical drill holes were "washed out" extending mineralization approximately 150 feet to the north of the current mineral resource boundary.
Hole RHS-13-Core: 34.0' of 0.04% PFN U3O8; GT 1.44
Hole RHS-14-Core: 9.0' of 0.13% PFN U3O8; GT 1.19
Hole RHS-31: 9.5' of 0.08% PFN U3O8; GT 0.77
All drill holes were logged with a PFN tool, which directly measures the uranium content, or a gamma probe which indirectly measures the uranium content. Three logging trucks have been used. Two are PFN trucks: one operated by GAA Wireline Services of Casper, Wyoming, and one Company owned and operated by either Strathmore or GAA technical personnel. The third is a conventional Century geophysical truck with a gamma probe. Logging tools owned by the Company and GAA Wireline, and operated by GAA Wireline, are routinely calibrated at the U.S. Department of Energy's Test Pits located in Casper, Wyoming. While using a PFN logging tool to provide direct readings of downhole uranium mineralization is a widely used procedure by many companies drilling roll front style uranium deposits, the Canadian Institute of Mining ("CIM") Estimation of Minerals Resources and Mineral Reserves Best Practice Guidelines recommends traditional chemical assaying to provide supporting assay results. Strathmore has completed a total of 19 core holes with samples submitted for assay analysis by Intermountain Labs of Sheridan, Wyoming, a Nuclear Regulatory Commission accredited facility. Assays from core analysis are pending.
Beaver Rim
Planned drilling has been completed in the Main Gas Hills, and three rigs have been moved to the Beaver Rim Area where exploration activities commenced in mid-July. Two rigs are currently operating at the South Black Mountain/Allegretti Prospect, and the third is active on the West Diamond Prospect. The Allegretti trend is immediately south of CAMECO's proposed in-situ recovery #2 Mining Unit. Last fall, four Cameco drill rigs were observed operating immediately north of this drilling location. At West Diamond, exploratory drilling will test for a potential south extension of the Peach deposit, which comprises Cameco's proposed #3 Mining Unit. Strathmore will provide further updates as work progresses and information is available.
Gas Hills, Wyoming
Strathmore's Gas Hills Properties comprises approx. 35,000 acres in the Gas Hills Uranium District of central Wyoming. Between 1953 and 1988, many companies explored, developed, and produced uranium in the Gas Hills Uranium District, including on lands in the Main Gas Hills Area now controlled by Strathmore. Cumulative production exceeded 100 million pounds making it the second largest uranium mining region in the USA. Strathmore is actively pursuing the advancement of a mine permit application for submittal to the State of Wyoming and a Source Materials License application to the US Nuclear Regulatory Commission. Strathmore owns 100% of the Gas Hills Uranium Properties, subject to a 5% net production royalty on 155 Rock Hill claims. There are no other royalties on all other claims which total 1,510 lode mining claims.
Upon completion of the Phase I US $8 million program in 2012, Korea Electric Power Corp. (KEPCO) can elect to participate in a Phase II program, and earn-in up to a 40% interest in the project by incurring US $32 million in expenditures over three years beginning in 2013.
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.
STRATHMORE MINERALS CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of mineral properties in the United States. Headquartered in Vancouver, British Columbia with a branch administrative office in Kelowna, the Company also has U.S. based Development Offices in Riverton, Wyoming and 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".
This press release contains "forward-looking information" that is based on Strathmore Minerals Corp.'s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Phase I exploration, drilling results, development, and permitting plans for the Gas Hills Properties The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Strathmore's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the historical resource estimates, the work expenditure commitments; the ability to raise sufficient capital to fund future exploration or development programs; changes in economic conditions or financial markets; changes in input prices; litigation; legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain permits required in connection with maintaining, or advancing projects; and labour relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Such forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
ON BEHALF OF THE BOARD
David Miller, CEO
Contacts:
Strathmore Minerals Corp.
Craig Christy
Investor Relations
1-800-647-3303
info@strathmoreminerals.com
www.strathmoreminerals.com