Option to purchase 360 acre Aurora property
Strathmore Resources Ltd SMR
Shares issued 7754498 1998-01-30 close $0.45
Monday Feb 2 1998
Mr Kenneth Friedman reports
The company has consummated an option to purchase the 360
acre Aurora property in southeastern Oregon. This is a large,
low-grade, heap leachable property that had been drilled by a
joint venture run by Placer Amax Corp. The joint venture
announced that their drill had proven a uranium resource of
17 million pounds. The deposit is open pit and heap
leachable, with a moderate strip ratio. The terms of the
option are $15,000 per year for six years, plus a 2%
yellowcake royalty that will be capped at a total of $1.1
million.
Strathmore has staked additional 2,700 acres surrounding the
Aurora property, containing additional uranium potential. The
Aurora property is likely to be the company's highest
priority for US production, and the company expects to begin
the permitting process by this summer.
The Aurora acquisition brings Strathmore's drill indicated
uranium resource in the western US, as calculated by the
major oil and mining companies that had previously controlled
the properties, to approximately 40 million pounds. With an
additional potential resource of approximately 80 million
pounds, the company now has a total uranium potential in the
western US in excess of 100 million pounds. Strathmore
acquired the above resource in the four months since
September 1997, and is continuing with its acquisition
strategy.
The company will examine the feasibility of establishing a
small scale uranium operation in Peru. The initial feed for
this operation will be the uranium mineral autunite, which
outcrops in small trades in many areas of the district. It is
rare to find outcrops of pure autunite, and the company
believes that the existence of such widespread outcrops in
the Macusani district may be significant. Autunite contains
51% uranium by weight and converts into 60% - 65% U3O8. Given
the pure autunite ore, the company believes this program can
generate positive cash flow which will help finance
continuing uranium exploration and acquisition efforts in
this district. The company plans to begin the metallurgical
and environmental studies which will lead to the permitting
of this project. |
