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Strathmore has an extensive and diverse property portfolio in the United States, located primarily in Wyoming and New Mexico.
Project - Gas Hills
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Gas Hills
Gas Hills, Wyoming (Strathmore 100%/ Korea Electric Power Corp. - KEPCO 40% earn-in)
Strathmore and Cameco are the dominant land holders in the Gas Hills Uranium District. With over 35,000 acres of mineral claims, the Company regards this project as a core holding for the development of future long-term uranium production in the United States. Historically, the Gas Hills was the second largest uranium producing region in the United States, having produced in excess of 100 million pounds of uranium concentrates from 1957-1989. Key personnel including John DeJoia, Sr. VP New Mexico Operations, Jim Crouch, VP Wyoming Operations and Tom Powell, Strathmore's Senior Landman, all have extensive mining experience in the Gas Hills during the 1970's and 1980's.
In February 2012, Strathmore completed a US $8 million private placement with KEPCO. Proceeds from this share placement are funding the Gas Hills 2012 Phase I exploration, development and permitting program. As part of this program, exploration drilling in the prospective 16,000 acre Beaver Rim area to the south of the Main Gas Hills open pits was undertaken for the first time. KEPCO retains an option to participate in a Phase II development program by incurring US $32 million in expenditures over the subsequent three years beginning in 2013. In addition, KEPCO will be entitled to the delivery of uranium "in kind" from any future production from the Gas Hills based on their proportionate ownership interest.
As part of the Phase I US$8 million Gas Hills development program, Strathmore completed 279 rotary drill holes, including 21 holes cored for recovery of mineralized samples for assay purposes. A total of 109,920 feet of drilling, including 5,040 feet of core drilling was completed in 2012, and used in this latest Gas Hills Technical Report. Additional drilling occurred after the cutoff date for receipt of drilling data used in this technical report, but terminated early in December due to winter weather constraints. The remaining portion of the Phase I drill program is scheduled to resume by May 2013.
On April 24, 2013, Strathmore filed a new National Instrument 43-101 Technical Report with an updated resource estimate for its Gas Hills Uranium Properties in Wyoming. The technical report was prepared by Chlumsky, Armbrust & Meyer LLC ("CAM") of Denver, Colorado, and is titled, "National Instrument 43-101 Technical Report, Update of Gas Hills Uranium Project, Fremont and Natrona Counties, Wyoming USA", and dated March 22, 2013. It replaces the previous NI 43-101 technical report completed by the same author, and dated July 31, 2012.
The following tables summarize the Gas Hills Technical Report's new NI 43-101 mineral resource estimates, in addition to the remaining non-compliant historical estimates and exploration targets that merit further exploration.
| Area (Indicated Resources) |
Contained Tons |
Contained Pounds (eU3O8) |
Ave. Grade % (eU3O8) |
Ave. Thickness (feet) |
|---|---|---|---|---|
| Day Loma | 1,400,000 | 4,000,000 | 0.14 | 4.4 |
| George-Ver | 900,000 | 1,400,000 | 0.08 | 4.1 |
| Total | 2,300,000 | 5,400,000 | 0.13 | 4.3 |
| Area (Inferred Resources) |
Contained Tons |
Contained Pounds (eU3O8) |
Ave. Grade % (eU3O8) |
Ave. Thickness (feet) |
|---|---|---|---|---|
| Bullrush | 900,000 | 900,000 | 0.05 | 5.7 |
| Day Loma | 600,000 | 1,200,000 | 0.10 | 3.2 |
| George-Ver | 400,000 | 500,000 | 0.07 | 3.2 |
| Loco-Lee | 1,000,000 | 1,200,000 | 0.06 | 3.2 |
| Rock Hill | 1,100,000 | 1,700,000 | 0.08 | 8.3 |
| Total | 3,900,000 | 5,500,000 | 0.07 | 5.1 |
CAM reviewed the geometry of the mineralization in three dimensions using a 1' of 0.035% U3O8 and 2' of 0.05% U3O8 cutoff grades and completing a grade X thickness contouring. Tons and contained pounds are reported to the nearest 100,000. Average grade and average thickness are reported to two and one decimal places respectively. This does not imply this degree of accuracy; the usual accuracy of an inferred resource estimate is lessthan one significant digit. Cutoffs for grade and thickness are applied to each mineralized intercept used in the resource estimate. Cutoff for grade thickness is applied to the contour map. It should be noted that mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
| Main Gas Hills Area: Property | Tons | Grade% eU3O8 |
Contained Lbs eU3O8 |
|---|---|---|---|
| Amazon | 285,000 | 0.06 | 366,000 |
| Andria | 740,000 | 0.06 | 950,000 |
| Badlands | 163,000 | 0.07 | 216,000 |
| Frazier-Lamac | 697,000 | 0.11 | 1,522,000 |
| Sunset | 1,395,000 | 0.06 | 1,813,000 |
| Jeep | 297,000 | 0.08 | 463,000 |
| Total | 3,577,000 | 0.07 | 5,330,000 |
The historic estimates in Table 3 were completed prior to Strathmore's acquisition of these properties and generated by American Nuclear Corporation in 1985 and Pathfinder Mines Corporation (Frazier-Lamac only) in 1996, using accepted engineering practices at those times. Although the exact details of the historic estimates are not available, they appear to have been done using the "nearest neighbor" method for grade and grade thickness to calculate tons and pounds. Given the extensive mineral production in the Gas Hills Uranium District by experienced mining companies, and the quality of their historical work completed, the Company believes these historical resource estimates to be relevant and reliable. However, a Qualified Person has not completed sufficient work to verify and classify the historical estimates as current mineral resources, and the Company is not treating the historical estimates as current mineral resources. Hence, they should not be relied upon. Additional work including confirmation drilling, sampling and chemical assay verification, and other technical support work, as deemed necessary, is required in order to verify the historical estimates as a current mineral resource.
Exploration Targets
The Gas Hills project has several exploration targets believed to contain uranium mineralization that merit further exploration. These include the remainder of the Bullrush and Loco-Lee properties where only portions of the historical resources were verified as compliant mineral resources, and the Day Loma NE & SE, Frazier-Lamac, George-Ver/Antelope, Jeep South, and Tablestakes targets. The characteristics of each target such as grade, length of mineralized trend, width and thickness can only be projected from nearby areas containing well-defined mineralization. CAM believes that these exploration targets have significant potential for the discovery of additional uranium mineralization in the Main Gas Hills area. Further details for each target area are highlighted in the Gas Hills Technical Report. In addition, Strathmore initiated exploration drilling at the Beaver Rim, to the south of the Main Gas Hills area. A total of 34 holes were drilled, which confirmed the presence of "roll-front" uranium mineralization at depths between 900-1,200 feet. Extensive drilling will be required to fully evaluate this area.
The technical information herein 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., PG 363 Wyoming and Society for Mining, Metallurgy & Exploration Registered Member 2205106RM, a Qualified Person under National Instrument 43-101.
