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The Church Rock Project is an Advanced stage, ISR uranium project located in the Grants Mineral Belt of New Mexico, USA, 12 miles north-northeast of Gallup, New Mexico. Laramide has disclosed that the Church Rock Project and nearby properties represent one of the largest and highest-grade undeveloped ISR uranium projects in the United States.

In addition to the Church Rock Royalty, Laramide has disclosed that portions of the Church Rock Project are subject to royalties, including a sliding scale royalty of 5% to 25%, held by Laramide.

Unless otherwise indicated, the scientific and technical information herein regarding the Church Rock Project has been derived from the technical report titled "Technical Report on the Church Rock Uranium Project, McKinley County, New Mexico, USA" (the "Church Rock Technical Report") with an effective date of February 22nd 2023, prepared for Laramide and Laramide's other public disclosures, copies of which are available under Laramide's profile on SEDAR+.

Laramide has disclosed that it holds several regulatory clearances in connection with the Church Rock Project, including: (a) a final Environmental Impact Statement prepared by the NRC in connection with the United States Bureau of Land Management and the United States Bureau of Indian Affairs, dated February of 1997; (b) a radioactive materials licence from the NRC, issued in 1998 and amended in 2006 and in "timely renewal"; (c) an aquifer exemption issued by the United States Environmental Protection Agency (the "EPA"), dated 1989; and (d) a water rights transfer, approved by the office of the New Mexico State Engineer, dated October 19, 1999. The Church Rock Technical Report disclosed additional regulatory clearances necessary for the project, including, among others, a discharge permit / underground injection control permit from the New Mexico Environmental Department and a right-of-way permit from the United States Bureau of Indian Affairs or the Navajo Nation.

Laramide filed the Church Rock Technical Report in January 2024. The Church Rock Technical Report included an inferred mineral resource estimate of 50.82 Mlbs of U3O8 (33.88 million short tons or 30.73 million tonnes at a grade of 0.075% U3O8).

Mineral Resources – As of February 22, 2023 (100% Basis)
Measured Indicated Inferred
Tons
(Mt)		 Grade
(% U3O8)		 Content (MLbs. U3O8) Tons
(Mt)		 Grade
(% U3O8)		 Content (MLbs. U3O8) Tons
(Mt)		 Grade
(% U3O8)		 Content (MLbs. U3O8)
            33.88 0.08 50.82
Note that mineral resources:
  1. CIM (2014) Definition Standards were followed for Mineral Resources.
  2. Mineral Resources are reported at a GT cut-off of 0.5 ft-% eU308
  3. A minimum thickness of 2.0 ft was used.
  4. A minimum cut-off grade of 0.02% eU308 based on historical mining costs and parameters from the district was used.
  5. Internal maximum dilution of 5.0 ft was used.
  6. Grade values have not been adjusted for disequilibrium
  7. Tonnage factor of 15 ft3/ton based on historical values used by the mining operators was applied.
  8. Mineralized areas defined by isolated or widely spaced drill holes or located within the area previously subject to past production, were excluded from the estimate
  9. Totals may not add due to rounding.

The Company owns a 4.0% net returns royalty on the Church Rock Project (the "Church Rock Project") located in New Mexico, USA (the "Church Rock Royalty"). Net returns are calculated based on the gross value received by the payor from the sale of ores, metals, minerals and materials from the property, less certain specified deductions for transportation, insurance, storage, sale, tolling and refining costs and any governmental royalties that are paid in respect of such production.

The Church Rock Royalty was created pursuant to a royalty deed between Hydro Resources, Inc. and Uranium Resources, Inc. (now Westwater Resources Inc. ("Westwater")) dated January 5, 2017. Hydro Resources, Inc. was acquired by Laramide Resources Ltd. ("Laramide") from Westwater on January 5, 2017.

On January 30th, 2024, Laramide announced the filing of an updated NI 43-101 PEA Technical Report. The Churchrock Technical Report included an economic analysis of the project that suggests an after-tax NPV at an 8% discount rate of US$239 million dollars with an after-tax IRR of 56%. The model parameters included a static uranium metal price of US$75/lb. U3O8, average annual sales of one million pounds U3O8 per year, and a project life of 32 years. The total metal produced is stated as 31.2 million pounds U3O8 based on an overall 68% recovery rate. Life of mine unit operating costs were estimated at $27.70/lb. U3O8 produced on a Q1 2022 U.S. dollar basis.

This PEA is preliminary in nature and is based on Inferred Mineral Resources that are considered too geologically speculative to have modifying factors applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that this economic assessment will be realized.

For further information, please refer to the Churchrock Technical Report available under Laramide’s profile on SEDAR+.

 

The history of exploration and mine development activities for the Churchrock Uranium Project dates back to the late 1950s. Mine development occurred at the Section 17 property (Old Churchrock Mine), in the early 1960s by Phillips Petroleum and Affiliates, and in the early 1980s by United Nuclear Corporation (UNC).

Exploration and development activities continued through the early 1990s by Uranium Resources, Inc. In 2004, Strathmore Minerals Corp. ("Strathmore Minerals") acquired the Church Rock Project. Strathmore Minerals was subsequently acquired by Energy Fuels in 2013. Energy Fuels transferred the property to Uranium Resources, Inc. in 2015, prior to the property being acquired by Laramide in early 2017.

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