Laramide Resources kicks off drilling at Crownpoint uranium project

Laramide Resources (ASX: LAM) has commenced an initial diamond drilling program at its Crownpoint uranium project in New Mexico.

The work program is being managed and executed by subsidiary company NuFuels Inc over the discrete Crownpoint and Churchrock deposits which are believed to be amenable to in-situ recovery (ISR).

The deposits are covered by a single licence from the US Nuclear Regulatory Commission.

Seven holes are expected to confirm and potentially expand Laramide’s understanding of the mineralised resources and optimise its planned ISR processes.

Results will inform the detailed planning and preliminary economic assessment required to advance to full ISR production.

Laboratory testing

NuFuels will conduct additional laboratory testing on core samples to demonstrate capacity to restore groundwater geochemical conditions to levels which existed prior to uranium recovery through the application of ISR methods.

A bench-level demonstration before and after ISR restoration will be carried out using samples from multiple locations within Churchrock.

Accelerated activity

Laramide chief executive officer Marc Henderson said the drilling program would complete a year of accelerated activity at its Australian and international projects, underpinned by an improved uranium price.

“Throughout the prolonged downturn of the uranium market, we maintained and enhanced our asset base and our core technical capability and that strategy has paid off, allowing us to restart our development plans at several projects,” he said.

“Our increased pace of exploration is directly related to our confidence that the improving price is still in its early innings as utilities and capital market players react to the very tight supply-demand fundamentals in the sector.”

Hit the ground running

Mr Henderson said the company was ready to hit the ground running at Crownpoint.

“With the fundamental shift in the uranium market now becoming increasingly entrenched and validated by utility action, we are taking active measures to better prepare for additional start-up activities and investment when warranted,” he said.

“The uranium dynamics are occurring within broader global energy supply constraints, alongside a renewed emphasis on energy security of supply and the focus on transitioning to the production of cleaner energy … it is for this reason that we expect activity levels at Laramide to remain high during the immediate future.”