Issue link: http://resourceworld.uberflip.com/i/581931
o c t o b e r / n o v e m b e r 2 0 1 5 www.resourceworld.com 43 a u s t r a l i a n u p d at e G r e g B a r n s i f you are in the uranium sector you need patience. After the 2011 Fukushima reactor accident, global inventories of uranium shot up and remain a factor today in dampening the price of the commod- ity. But for a company like Laramide Resources [LAM-TSX, ASX], which is yet to swing into production, the mooted longer term increase in demand for uranium is welcome. Laramide's flagship Westmorland Project is in northwest Queensland near the Northern Territory border. The company recently announced retaining well known mining engineering and project management consultants, Lycopodium Minerals Pty, to deliver an updated scoping and PEA which is expected to be released by year end. One of the features of the study will be to devise an updated mine plan that will have a mill feed rate of 2 million tonnes/year and uranium production of 4 million lbs/year. The Westmoreland Project has an April 2009 NI 43-101 resource estimate of indicated resource totaling 36 million lbs ura- nium (U 3 O 8 ) contained in 18.7 million tonnes averaging 0.089% U 3 O 8 , and inferred resource of 15.9 million lbs U 3 O 8 in 9 million tonnes averaging 0.083% U 3 O 8 . A diamond drilling program in 2012-2013, comprising 30 holes for 4,118 metres, was undertaken with the results highlighting a richly prospective structural corridor between the Huarabagoo and Junnagunna deposits. This year, work is developing a min- eral systems approach to regional exploration which "will utilize the enormous wealth of Westmoreland data available." The company noted in its first half 2015 Management Discussion and Analysis: "This model incorporates a detailed review of influencing factors on mineralized deposition and has been used successfully by Canadian explorers in the Athabascan Uranium Province. The mineral systems approach brings together the various aspects of structural architecture, sed- imentology, fluid sources and pathways from regional to prospect scale, in turn significantly improving drill location targeting and the productivity and efficiency of future drilling programs. In addition, this work could lead to the identification of new satellite deposits. As part of this systems approach, during the quarter, a large amount of the drill core has been scanned with a short wave- length infrared spectrometer." The major issue confronting development of the Westmoreland Project is political risk. Australian uranium policy is divided between the national and state and territory governments. While the current conservative Liberal-National Party government in Canberra backs uranium exploration and mining, the centrist Australian Labor Party state government in Queensland, elected earlier this year, is not as enamoured of this clean energy source. In March, Queensland's Mining Minister, Anthony Lyneham, said that he would overturn the decision of the previous Queensland government in 2014 to allow uranium mining. Dr. Lyneham, however, said exploration for uranium will still be permitted in Queensland. Whether the Queensland government will act on its commit- ment to ban uranium mining, which it can do without legislative approval, remains to be seen. Like Western Australia, another resources rich state, Queensland's economy is suffering with the downtown in key exports like coal and base metals. If Laramide Resources is looking to open a uranium mine at its Westmoreland Project and therefore create badly needed jobs and investment in regional Queensland, the Queensland government will be sorely tempted to reverse the decision taken earlier this year. n LARAMide ReSouRCeS awaits political uranium decision