Resource World Magazine

A P R I L / M A Y 2 0 1 8 www.resourceworld.com 51 Australian Update by Greg Barns A t the recent PDAC Conference in Toronto, the Australian government released data confirming the nation's status as the global leader in uranium resources. As at the end of 2017 Australia holds 29% of the world's Economic Demonstrated Resources of uranium (equivalent to Reasonably Assured Resources that can be produced at costs of less than US $130/kg U). Canada has 8%. Laramide Resources Ltd. [LAM-TSX, ASX] is looking to contribute to maintaining Australia's premier status as a uranium producer through its Westmoreland Project, located in northwest Queensland, and also via its joint venture with Rio Tinto PLC [RIO- NYSE] in the Northern Territory. Laramide Resources has other near term production assets in Utah and New Mexico. The Westmoreland Project is one of the largest undeveloped uranium deposits in Australia. Its location in Queensland does, however, create some difficulty in terms of development with the current state (provincial) government allowing exploration of ura- nium but not development of mining projects. Westmoreland has indicated mineral resources totalling 36 mil- lion lbs of U 3 O 8 contained in 18.7 million tonnes with an average grade of 0.089% U 3 O 8 , and inferred resources of 15.9 million lbs U 3 O 8 contained in 9.0 million tonnes averaging 0.083% U 3 O 8 . Laramide intends to mine via an open pit. Metallurgical results have indicated a high uranium recovery of over 95% using conven- tional acid leaching and ion exchange technology to produce about 3.5 million lbs U 3 O 8 . The company estimates a mine life of 13 years with the potential to increase it to 15 years after further drilling. The proposed mine at Westmoreland will involve an initial capital expenditure of US $268 million (plus a US $49 million con- tingency) to construct the mine and a 2 million TPA mill with a nameplate capacity of 4 million lbs U 3 O 8 per year. Importantly, the cash operating cost over the first five years of operation is esti- mated to average US $21/lb U 3 O 8 , increasing to US $23.20/lb over the life of the mine. While the location of the Westmoreland Project is near the Northern Territory border it is, in fact, 350 km from the famous mining city of Mount Isa and 260 km from the north coast port of Karumba. The Century zinc mine, around 200 km northeast of Westmoreland, provides good infrastructure access. But there needs to be a change of heart about uranium min- ing by the Queensland government led by the centrist Australian Labor Party, recently re-elected for another three-year term last year. However, the Northern Territory has no such roadblock in place with bipartisan political support for uranium exploration and mining. The Northern Territory properties consist of joint ven- ture agreements on several large properties adjacent to the Westmoreland Project. Laramide controls approximately 1,332 km 2 in exploration licences. There are three joint ventures and farm-ins in the Northern Territory, with the arrangement with Rio Tinto being currently active. In May 2011, Laramide announced the signing of a Binding Farm-In and Joint Venture Term Sheet with Rio Tinto Exploration Pty Limited (RTX) over 683 km 2 of ground that is situated geologi- cally within the highly prospective Murphy Uranium Province and along strike from the Westmoreland Project. Under the terms of the agreement, Laramide could earn 51% in the project by spending AUD $10 million over four years on explo- ration and development. An extension until November 2016 was negotiated but unforeseen delays in being able to undertake and complete work led to RTX and Laramide looking at ways to extend the agreements. n Laramide Resources finding ways to advance uranium projects

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