Strathmore Updates Project Outlook for 2012
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STRATHMORE MINERALS CORP. (TSX:STM)(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 Pena 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
