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Laramide Resources (LAM) released the latest set of assays from drilling at the Westmoreland Uranium Project, located in Queensland, Australia. In this latest release, assay results from 17 total holes were received (from both the Huarabagoo deposit and the link zone connecting to the Junnagunna deposit) indicating that uranium mineralization is continuous along strike. Moreover, the initial results point to the potential for joining both deposits. This latest batch of Westmoreland results follow the previous updates which began last fall. Ahead of an updated resource estimate for the Project, we maintain our 12-month price objective of C$1.55 per share. This equates to upside of +150% from the most recent intra-day quote. Based on our estimates, shares of Laramide Resources currently trade at a 0.24x P/NAV multiple.
In early November 2024, the drilling campaign at the broader Westmoreland Uranium Project was completed. The program encompassed a total of 106 holes (of which 60 reverse circulation and 46 diamond drill) covering a total of 11,263m. Assay results have been coming out since last fall as core processing is on-going. The latest set of results from 7 drill holes (out of 17) were released from infill drilling at Huarabagoo. All of the drill holes returned significant uranium mineralization with further gold mineralization evident at the Huarabagoo deposit. Highlight assay results included:
HB24DD011 – 5m at 2,053 ppm (0.21%) U3O8 and 0.58 g/t Au from 34.5m including 3.7m at 2,751 ppm (0.28%) U3O8 and 0.81 g/t Au
HB24DD013 – 12m at 1,694 (0.17%) U3O8 from 44m including 5.0m at 3,235 ppm (0.32%) U3O8
HB24DD014 – 17m at 764 ppm (0.08%) U3O8 from 30m including 9m at 1,247 ppm (0.12%) U3O8
Additionally, results from 4 drill holes (out of 27) were released from the zone between the Huarabagoo and Junnagunna deposits (the link zone). The results demonstrate that uranium is continuous along strike and can potentially join the two deposits. Highlight assay results included:
HJ24RC014 – 15m at 267 ppm (0.03%) U3O8 from 79m including 1m at 1,068 ppm (0.11%) U3O8 from 80m and 1m at 2,128 ppm (0.21%) U3O8 from 34m
An updated resource estimate for Westmoreland remains on schedule for early 2025. This upcoming resource estimate will notably include a maiden resource for the Long Pocket uranium deposit, a satellite deposit located 7km east of the Westmoreland Project. Initial results indicated shallow (<50m depth) flat-lying, continuous mineralization. Over 2,100m was drilled over the course of 2024. Highlight assays included:
LP24RC004 – 10m at 606ppm U3O8 from 6m depth, including 2m at 1,726ppm U3O8 from 11m
LP24RC006 – 8m at 1,770ppm U3O8 from 16m depth, including 4m at 3,128ppm U3O8 from 17m.
Lastly, it was announced that a new exploration permit (EPM 28807) was granted. This latest permit adds 327km2 of prospective tenure located adjacent to the Westmoreland Project. The permit hosts 7 known uranium occurrences along with one gold occurrence. Recall that a 2016 NI43-101 compliant PEA/Scoping Study for Westmoreland estimated 36.0M lbs U3O8 grading 0.09% in the Indicated category along with 15.9M lbs grading 0.08% in the Inferred category.
We maintain our LT $120/ lb uranium price and maintain our split Churchrock NAV10% + in-situ valuation for the rest of the portfolio. As such, we are maintaining our current C$1.55 (rounded) 0.60x NAV price objective. This equates to upside of +150% from the most recent intra-day quote. Based on our estimates, shares of Laramide Resources currently trade at a 0.24x P/NAV multiple.