KELOWNA, BRITISH COLUMBIA--(Marketwire -06/07/12)- Strathmore Minerals Corp. (STM.TO)(STHJF) ("Strathmore" or the "Company") announced today that it has retracted the resource estimate and the results of the Scoping Study published in its report entitled "Scoping Study of the Strathmore Resources (US) Ltd. Church Rock Deposit, McKinley County, New Mexico USA," dated April 4, 2011 and has retracted the resource estimate in its report entitled "Technical Report on the Strathmore Church Rock Uranium Property, McKinley County, New Mexico," dated December 20, 2005 for its Church Rock, New Mexico Property, and that the public should no longer rely on the mineral resource estimate or Scoping Study. The Company's decision to retract the mineral resource estimate and Scoping Study was made after discussions with the British Columbia Security Commission ("BCSC") in response to the issues raised by the BCSC's review. Because Strathmore considers Church Rock to be a non-core property, the Company is not planning to complete any further work or prepare new or amended independent supporting technical reports. The Company is considering future disposition plans for the Church Rock property along with its other non-core properties.
The independent qualified persons who authored the Church Rock technical reports included a mineral resource estimate based upon a historical database compiled by Kerr-McGee Nuclear Corporation ("Kerr-McGee"). However, the BCSC raised concerns that the authors' reliance on the historical data did not include sufficient verification to support a current mineral resource. The authors were not able to adequately verify the historical data through chemical assays or other means. Therefore, the mineral resource estimate for the Church Rock property is not a compliant current mineral resource, and as such, the mineral resource estimate and the results of the Scoping Study, as stated in these technical reports, have been retracted.
Scientific and technical information contained in the two Church Rock technical reports was based on data collected by Kerr-McGee, which was the largest uranium producing company in the United States for several decades from the 1960s through to the 1990s. A total of 165 drill holes totalling 306,000 feet drilled were completed on the Church Rock property from the late 1960s to 1991 (data from drill summary sheets). Most of the 165 drill holes were subsequently identified and marked by Strathmore during field inspections. Kerr-McGee logged the completed drill holes with a gamma-ray, self potential, and resistivity probe by either a contract logging company or by a Kerr-McGee company-owned logging truck. Typical operating practice in the Church Rock district was to rely on calibrated gamma log interpretation of mineralized intercepts in drilling up to and including resource estimates. No chemical analyses or core holes were reported within the Church Rock project data, although Freeman (1987) noted Kerr-McGee did run ISR lab tests on core samples. At that time, the practice of core sampling for chemical assay was most often carried out for metallurgical confirmation or to address disequilibrium issues, not for verifying the resource estimate as is required under the Canadian Institute of Mining ("CIM") Estimation of Minerals Resources and Mineral Reserves Best Practice Guidelines.
An historical Measured and Indicated mineral resource estimate reported by Kerr-McGee in 1979 totalled 10.9 million pounds U3O8 based on 6,050,000 tons at an average grade of 0.09% U3O8. Kerr McGee's Measured and Indicated mineral resource categories are most likely comparable to CIM Measured and Indicated mineral resource categories. In 1995, Rio Algom LLC, the successor company to Kerr-McGee, prepared a resource estimate utilizing Kerr-McGee's methodology, but using a higher cut-off grade of 5 feet of 0.10%. An historical Measured resource estimate totalling 5,426,000 lbs U3O8 based on 2,532,000 tons at an average grade of 0.11% U3O8, an Indicated resource estimate totalling 76,000 lbs U3O8 based on 34,000 tons at an average grade of 0.11% U3O8, and a total Measured & Indicated Resource estimate of 5,502,000 lbs U3O8 based on 2,564,000 tons at a grade of 0.11% U3O8 was provided. Strathmore cautions readers that the Company is not treating either of these two historical resource estimates as current mineral resources as a qualified person has not completed sufficient work to verify and classify these historic estimates as a current mineral resources.
Table 1- Kerr-McGee Historical Resource Estimate: Cutoff of 6 ft of 0.05% (GT of 0.30) (Faulk 1979) Category Tons Grade %U3O8 Pounds U3O8 ---------------------------------------------------------------------------- Total Measured & Indicated 6,050,000 0.09 10,900,000 Table 2- Rio Algom LLC Historical Resource Estimate: Cutoff of 5 ft of 0.10% (GT of 0.50) ( Smouse 1995) Category Tons Grade %U3O8 Pounds U3O8 ---------------------------------------------------------------------------- Measured 2,532,000 0.11 5,426,000 Indicated 34,000 0.11 76,000 Total Measured & Indicated 2,564,000 0.11 5,502,000
The Kerr-McGee and Rio Algom LLC historical Measured and Indicated resource estimates stated herein were completed prior to the implementation of the National Instrument 43-101. Given the extensive mineral production in the Church Rock and Crownpoint areas (approximately 16 million pounds) and the experienced 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 these historical resource estimates as current mineral resources, and the Company is not treating the historical resource estimates as current mineral resources. 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.
Investors should not rely on the resource estimate or economic information regarding the Church Rock property contained in (i) the "Technical Report on Strathmore Church Rock Uranium Property, McKinley County, New Mexico dated December 20, 2005 prepared by David C. Fitch, C.P.G; (ii) the "Scoping Study of the Strathmore Resources (US) Ltd. Church Rock Deposit McKinley County, New Mexico USA," dated April 4, 2011 prepared by Behre Dolbear & Company (USA), Inc.; or (iii) any other documents previously filed by the Company relating to the Church Rock property which reference the retracted resource estimate or Scoping Study.
Status of New Gas Hills Technical Report
The Company advises that the new independent NI 43-101 technical report for the Company's Gas Hills Properties is forthcoming. The new report is now expected to be finalized and submitted to the BCSC by mid-June 2012. The report is being completed by Chlumsky, Armbrust & Meyer LLC (CAM), an international mineral resources and engineering consulting firm based in Lakewood, Colorado.
As noted in the Company's August 19, 2011, December 6, 2011, January 6, 2012 and April 13, 2012 press releases, investors should not rely on the previously filed technical reports for Gas Hills and should not rely on the mineral resource estimates for Gas Hills disclosed in the Company's press releases dated July 21, 2011 or August 5, 2011.
The technical information in this news release has been 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 news release contains forward-looking statements, including statements regarding the timing of the new technical report for the Gas Hills project, the resolution of the issues raised in the BCSC's limited technical disclosure review and the plans for the Church Rock property. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. 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