KELOWNA, BRITISH COLUMBIA--(Marketwire - March 19, 2012) - STRATHMORE MINERALS CORP. (News - Market indicators)(OTCQX:STHJF) ("Strathmore" or the "Company") is pleased to announce that further to the recently concluded strategic investment by Korea Electric Power Corporation (KEPCO), the Company has now completed its 2012 capital budget plans for aggressively advancing its core Roca Honda, New Mexico and Gas Hills, Wyoming, uranium development projects. These projects represent two of the most significant conventional uranium development projects in the United States in the past thirty years, and are partnered with Sumitomo, one of the world's largest integrated trading companies, and KEPCO, one of the largest diversified worldwide energy companies, both leading international firms that have recognized the need to invest and develop reliable future uranium supplies.
Strathmore's 2012 capital budget is the largest in the Company's history and will total US $15.8 million, including US $3.0 million from its partner Sumitomo for their pro-rata share of permitting and development expenditures at Roca Honda. The Roca Honda budget totals US $7.4 million. The Gas Hills budget has been set at US $8 million as per the strategic definitive agreement announced with KEPCO on January 31, 2012 and US $0.4 million for non-core properties in Wyoming and New Mexico.
Corporate Milestones for 2012
Included in the 2012 capital budget are several key milestones the Company plans to achieve:
- Complete the Phase I US $8 million Gas Hills drilling and permitting program, which includes first drilling by Strathmore at the highly prospective Beaver Rim area, to explore and define the area's uranium resources.
- Submit the Gas Hills Mine Permit application to the Wyoming Department of Environmental Quality by year end.
- Initiate preparation of an Environmental Impact Statement for the Gas Hills.
- Complete the Roca Honda Preliminary Economic Assessment (PEA) and Pre-Feasibility studies by Q3, in addition to the Feasibility study by year end.
- Submit the Peña Ranch, New Mexico NRC mill license application by year end.
- Continue working with the regulatory agencies for the completion of the Roca Honda Environmental Impact Statement by year end, setting the stage for a mine permit decision in 2013.
None-Core Properties
Since 2010, Strathmore has created considerable value through the disposition of a number of non-core projects that have helped fund the Company's operations. The Pine Tree-Reno Creek Properties were sold to Bayswater Uranium Corp., the Oshoto leases were sold to Peninsula Energy as part of their Lance project, and the Juniper Ridge project was sold to Crosshair Energy Corp in a phased purchase and sale transaction. Strathmore continues to hold varying gross revenue royalties on each of these projects, which are progressing toward development by their respective operators. Strathmore is confident that these royalties will generate considerable future value to Strathmore as these projects continue to move forward. In addition, the Company retains eight properties with in-ground uranium resources that are available for sale or joint venture, and is continuing to explore other potential opportunities to enhance shareholder value.
United States Uranium Outlook
Strathmore is well positioned in the United States, which remains the largest uranium consumer in the world, despite ongoing and projected growth internationally. The 104 nuclear reactors in the United States, which supply approximately 22% of the country's electricity, consume 50-55 million lbs of uranium annually, yet the US produces only 4-5 million lbs annually. Much of the supply difference is derived from the "Megatons for Megawatts" treaty with Russia, which is set to expire in 2013. The expiration of this treaty suggests that US based utilities will eventually need to source long-life uranium assets, which contributed to Strathmore taking the long-term approach by permitting its largest and best conventional projects, as opposed to its smaller ISR projects. Despite the current weak uranium price environment, the sector will require higher prices to meet future uranium needs, ensure stability of supply, and stimulate new exploration and mine development.
The technical information in this news release 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., 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 uranium 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 information" that is based on Strathmore Minerals Corp.'s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Strathmore's exploration and development plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Strathmore's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the historical resource estimates, the work expenditure commitments; the ability to raise sufficient capital to fund future exploration or development programs; changes in economic conditions or financial markets; changes in input prices; litigation; legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain permits required in connection with maintaining, or advancing projects; and labour relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Strathmore Minerals Corp. disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
ON BEHALF OF THE BOARD
David Miller, CEO
