Strathmore Minerals (TSE:STM)(OTCQX:STHJF) said after market Friday that further to its announcement in January, it has provided updates to the status of technical reports on both its Churck Rock and Gas Hills properties in New Mexico and Wyoming, respectively.

The company said that its independent consultant, Behre Dolbear and Company, has completed a new NI 43-101 compliant technical preliminary economic assessment of the Church Rock deposit in New Mexico. Strathmore has submitted the report to the British Columbia Securities Commission (BCSC) for review, it added.

In addition, consulting firm Chlumsky, Armbrust & Meyer is proceeding on schedule with the task of preparing a new NI 43-101 technical report for the company's Gas Hills properties in Wyoming. The report is expected to be completed for submission to the BCSC by the end of April, Strathmore said.

In early December, the uranium explorer said that after an "extensive review" of the technical report on the Gas Hills uranium project dated July 20, 2011, and consultation with the BCSC, it decided to appoint another author to prepare a new technical report on the property.

As noted in a company statement in August, and again in December and January, Strathmore reiterated: "Investors should not rely on the previously filed technical reports for Gas Hills or Church Rock and should not rely on the mineral resources for Gas Hills disclosed in the company's press releases dated July 21, 2011 or August 5, 2011 nor the Church Rock preliminary economic assessment disclosed in the company's news release dated April 5, 2011."

Strathmore is a Vancouver-based resource company specializing in the strategic acquisition, exploration and development of uranium properties in the United States.

In March, the company set the largest budget in its history for 2012 to aggressively advance its core Roca Honda, New Mexico and Gas Hills, Wyoming, uranium development projects.

The assets represent two of the most significant conventional uranium development projects in the United States in the past thirty years, the company said, and are partnered with Sumitomo, one of the world's largest integrated trading companies, and Korea Electric Power Corporation (KEPCO), one of the largest diversified worldwide energy companies.

Strathmore's 2012 capital budget will total $15.8 million, including $7.4 million for Roca Honda and $8 million for Gas Hills as part of the strategic definitive agreement announced with KEPCO.

The company also recently decided to diversify its asset base beyond uranium, and last month, agreed to acquire Saratoga Gold Company, whose primary asset is the Copper King project in Wyoming.

BC-based private company Saratoga's main project comprises two State of Wyoming leases, totaling 1,120 acres in the Silver Crown Mining District of Wyoming.

BC-based private company Saratoga's main project comprises two State of Wyoming leases, totaling 1,120 acres in the Silver Crown Mining District of Wyoming.

Saratoga also holds 52 lode mining claims in the State of Montana, near Tintina Resources' Black Butte copper-cobalt-silver project.

"We are very excited about this opportunity to create value for Strathmore's shareholders outside of our core uranium business, by acquiring this significant gold-copper project," said president and CEO of Strathmore, David Miller.

"Our major focus on uranium has not changed with the largest drilling and permitting budget in Strathmore's history recently approved by the Board for moving the Roca Honda and Gas Hills projects forward.

"This acquisition enables Strathmore to enhance its mineral base with an advanced gold-copper project within our geographic area of expertise. Our experienced Wyoming based geological and permitting technical team can effectively manage this project."

Copper King is a shear-zone controlled gold-copper mineralized deposit, enveloped within a larger shell of disseminated and stockwork mineralization.

Historically, the property has been explored by several operators before being acquired by Saratoga in 2006.

A historical resource estimate of the property consisted of 46.29 million measured and indicated tons grading 0.019 ounces per ton, and 0.17% copper, for a contained resource of 866,000 ounces of gold and 153.0 million pounds of copper. The 1995 resource estimate used a 0.010 ounce per ton gold-only cutoff.

In 2007, Saratoga completed 18,288 feet of drilling in 28 holes to confirm mineralization outlined by previous historical operators, with another eight holes completed in 2008.

Strathmore said the deposit remains open along trend and at depth. The company plans on preparing an NI 43-101 compliant technical report and resource estimate that includes Saratoga's drill results, as well as Strathmore's own planned confirmation drilling later this year.

Strathmore said it will contract Mineral Development Associates to continue the due diligence originally undertaken by Saratoga.

Saratoga's CEO, Norm Burmeister, added: "We approached Strathmore with this opportunity because of their reputation and expertise in development and permitting in Wyoming.

"Saratoga's shareholders look forward to continuing with the progress made on the Copper King project under Strathmore's guidance."

Under the agreement, Strathmore has agreed to issue 1.25 of its common shares for each common share of Saratoga. Based on 14.6 million Saratoga shares outstanding, Strathmore will issue 18.25 million common shares to complete the transaction.

In addition, Strathmore has agreed to pay for any shortfall in transaction expenses incurred by Saratoga.

The two companies have also decided on a C$250,000 break fee payable to Strathmore in the event the agreement is terminated under certain circumstances.

Saratoga's board has already approved the deal, which requires two thirds Saratoga shareholder approval. Saratoga shareholders that collectively own around 47.3 percent of the company's shares have entered into lock up agreements with Strathmore, the parties said.

The transaction is expected to close around May 15, subject to regulatory approvals.

Strathmore Minerals is a Canadian resource company specializing in the strategic acquisition, exploration and development of uranium properties in the United States.

Earlier today, the company announced it has set the largest budget in its history for 2012 to aggressively advance its core Roca Honda, New Mexico and Gas Hills, Wyoming, Uranium development projects.

Strathmore's 2012 capital budget will total $15.8 million, including $3.0 million from its partner Sumitomo for the pro-rata share of permitting and development expenditures at Roca Honda. The Roca Honda budget totals $7.4 million.

The Gas Hills budget has been set at $8 million as part of the strategic definitive agreement announced with KEPCO, and the company also set aside $0.4 million for non-core properties in Wyoming and New Mexico.

The company said these assets 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 Korea Electric Power Corporation (KEPCO), one of the largest diversified worldwide energy companies, both international firms that have recognized the need to invest and develop reliable future Uranium supplies.

The news today follows a recently-concluded strategic investment by KEPCO.

Strathmore's 2012 capital budget is the largest in the company's history and will total $15.8 million, including $3.0 million from its partner Sumitomo for the pro-rata share of permitting and development expenditures at Roca Honda. The Roca Honda budget totals $7.4 million.

The Gas Hills budget has been set at $8 million as part of the strategic definitive agreement announced with KEPCO, and the company also set aside $0.4 million for non-core properties in Wyoming and New Mexico.

In February, Strathmore completed an $8 million private placement financing with Korean government-backed energy company KEPCO, as part of an up to $40 million definitive strategic agreement signed last month.

The definitive agreement, from which proceeds will be used to develop the company's Gas Hills Uranium properties in Wyoming, contains an off-take provision for KEPCO to purchase a portion of any future annual Uranium production from Strathmore's properties.

The Gas Hills Uranium district in Wyoming was the second largest Uranium producing region in the United States, having produced 100 million pounds of Uranium concentrates from 1957 to 1989.

Under the terms of the placement, KEPCO acquired 14.6 million shares of Strathmore common stock at $0.55 per share, for total gross proceeds of $8.0 million, making it Strathmore's largest shareholder, with an approximate 14 percent interest in the company.

Strathmore Minerals also outlined Monday a number of corporate milestones for the coming year that it plans to achieve.

The company said it plans to complete the phase I $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.

Strathmore also plans to submit the Gas Hills mine permit application to the Wyoming Department of Environmental Quality by year-end, as well as initiate preparation of an environmental impact statement for Gas Hills, and complete the Roca Honda preliminary economic assessment and pre-feasibility studies by the third quarter. It also plans to complete a feasibility study for Roca Honda by year-end.

The company also said it plans to submit the Pena Ranch, New Mexico NRC mill license application by year-end, and continue working with the regulatory agencies for the completion of the Roca Honda environmental impact statement by the end of the year, setting the stage for a mine permit decision in 2013.

In terms of non-core properties, Strathmore 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, it said.

Strathmore also said it was 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 nation, which supply approximately 22 percent of the country's electricity, consume 50 to 55 million pounds of Uranium annually, yet the US produces only 4-5 million pounds 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 projects, the company said.

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.

Strathmore Minerals is a Canadian resource company specializing in the strategic acquisition, exploration and development of Uranium properties in the United States.

Uranium explorer Strathmore Minerals (TSE:STM) said Friday it has completed its previously announced $8.0 million private placement with Korea Electric Power Corp (KEPCO), as part of an up to $40 million definitive strategic agreement signed last month.

Under the terms of the deal, KEPCO acquired 14.6 million shares of Strathmore common stock at $0.55 per share, for total gross proceeds of $8.0 million, making it Strathmore's largest shareholder, with an approximate 14 percent interest in the company.

The new funds will be used for a phase one exploration and development program at the Gas Hills Beaver Rim area in Wyoming, and for ongoing permitting activities on Strathmore's nearby lower Gas Hills properties.

The initial deal was announced last August. KEPCO is a Korean government-backed energy company with over $120 billion in assets.

The definitive agreement also contains an off-take provision for KEPCO to purchase a portion of any Future annual Uranium production from Strathmore's properties. Future off-take Uranium purchases will be determined by KEPCO's equity stake in the company.

The Gas Hills Uranium district in Wyoming was the second largest Uranium producing region in the United States, having produced 100 million pounds of Uranium concentrates from 1957 to 1989.

Once phase one exploration and development is complete, KEPCO will have the right to participate in a phase two development campaign, giving KEPCO the chance to earn up to 40 percent of the Gas Hills properties, for another $32 million in expenditures over a period of three years.

After the phase one program, KEPCO can choose to establish a limited liability company with Strathmore as part of phase two, with the project company to appoint a management committee to determine budgets, overall policies, and other procedures.

The management committee will be comprised of three representatives of Strathmore and two representatives of KEPCO, with Strathmore as the manager of the project.

Strathmore controls over 34,000 acres of mineral claims in the Gas Hills, including approximately 16,000 acres in the highly prospective and relatively unexplored portion of the Gas Hills, known as "Beaver Rim", located to the south of the lower Gas Hills area.

The company has been advancing its mine permit application in the lower Gas Hills area for submission to the State of Wyoming, as well as a "Source Materials License" application to the US Nuclear Regulatory Commission.

Late last year, Strathmore said it hired another mineral resources and engineering consulting firm to prepare a new NI 43-101 compliant technical report for its Gas Hills properties.

Lakewood, Colorado-based Chlumsky, Armbrust & Meyer will prepare the new document, which was commissioned as a result of deficiencies found by the British Columbia Securities Commission (BCSC) in its "limited technical disclosure" review of Strathmore's technical report on the assets.

The new report is expected by late April.

In early December 2011, the Uranium explorer said that after an "extensive review" of the technical report on the Gas Hills Uranium project dated July 20, 2011, and consultation with the BCSC, it decided to appoint another author to prepare a new technical report on the property.

KEPCO is involved in the generation, transmission and distribution of electrical power from nuclear, hydro, coal, oil and LNG sources around the world. It provides electricity to almost all households in Korea and operates 21 nuclear power plants in the country with seven more under development.

The presentation, which will be posted on Strathmore's website the same day, will take place at 4:05pm ET at the Waldorf Astoria Hotel, 301 Park Avenue in the Morgan Suite, tomorrow.

Strathmore Minerals is a Vancouver, British Columbia-based resource company specializing in the acquisition, exploration and development of advanced uranium properties in the United States.

KEPCO and Strathmore must complete a Share Subscription Agreement and a Definitive Agreement before the end of September.

After completing the share subscription agreement, KEPCO will pay Strathmore US $10 million - $2 million as a project development allowance for the Gas Hills project, and $8 million as a subscription for new common shares of Strathmore, at a price of 66-cents each, subject to market conditions.

Strathmore will use these funds to determine the potential, quantity, quality and commercial value of the uranium deposits in the Beaver Rim area, located south of the property's main deposit.

The funds with also enable Strathmore to undertake a prefeasibility study and to generally advance the program at Gas Hills.

During this phase one portion of the agreement, Strathmore must also commit to $10 million in expenditures to move the project toward the mutually agreed upon milestones.

"We are very pleased that KEPCO has agreed to invest in Strathmore and partner with us in the development of the Gas Hills Uranium Properties," said Strathmore CEO, David Miller.

"KEPCO's vision in the future of nuclear power and international presence in uranium development is widely recognized, and . . . is expected to form a dynamic and capable partnership with the resources necessary to advance the Gas Hills project to production."

Strathmore has over 35,000 acres in mineral claims covering the Gas Hills property, located in central Wyoming.

At the end of July, Strathmore submitted a resource estimate on the property, which included over 5.5 million tonnes grading 0.097% triuranium octoxide, the naturally occurring form of uranium, for a total of more than 10.7 million pounds of the element in the measured and indicated category.

Historical resources have been estimated at approximately seven million pounds grading 0.72% triuranium octoxide, for a total of 10.1 million pounds.

Pending the successful completion of phase one, KEPCO has the option to enter into an operating agreement with Strathmore to establish a limited liability company (LLC) for the Gas Hills property.

By the end of the first year of the phase two portion of the project, KEPCO must contribute $10 million - $8 million to fund various activities on the site as agreed upon by Strathmore and KEPCO, and the remaining $2 million paid to Strathmore as a project development fee.

Once KEPCO has contributed the full $10 million, it will acquire an 11.42% interest in the LLC. It may earn an additional 11.42% interest by offering $10 million to fund the second year of the project. An additional $10 million to fund the third year of the phase two portion of the project will earn KEPCO an additional 11.42% interest, bringing its possible interest in the LLC to 34.26% for $30 million.

Still, once the LLC obtains all required permits, licenses and approvals for the mining, milling and exploration of the uranium deposits on the property, KEPCO may earn another 5.74% in the LLC - bringing its total to 40% - by contributing an additional $5 million.

Throughout the project's development, Strathmore will remain the operator of the Gas Hills property and will receive a management fee.

The yet-to-be-formed LLC will have a management committee, which will be comprised of both Strathmore and KEPCO members, and will oversee and determine policies, objectives, procedures, actions and budgets.

The news sent Strathmore's stock on the Toronto Stock Exchange up 3.64% to trade at $0.57 per share as of 12:03 pm EDT, despite the mining sector's 4% drop.

The latest NI 43-101 technical report outlines 10.7 million pounds of measured and indicated uranium, at a grade of 0.097%, plus an additional 1.2 million pounds of inferred resources at a grade of 0.064%.

The company said there are also remaining non-compliant historical resources of 10.075 million pounds of uranium, which Strathmore plans to upgrade to NI 43-101 compliant standards as historic information is acquired and more confirmatory drilling is completed.

The Gas Hills properties comprises around 35,000 acres in the Gas Hills Uranium District, where historical uranium production exceeded 100 million pounds, making it the second largest uranium mining region in the US.

The technical report provides new mineral resource estimates for several properties where Strathmore acquired historic drill data and later confirmed mineralization by drilling, including George-Ver, Day Loma, Loco-Lee, and the Rock Hill deposits.

In addition to these NI 43-101 resources, the report estimated potential mineral targets at the properties, which include the Beaver Rim/South Gas Hills and Main Gas Hills Area targets, could host between a further 35.35 million and 68.27 million pounds of uranium.

In particular, the Beaver Rim area, which was previously believed to be unexplored but with great development potential, has been the subject of new historical information, showing that significant exploration programs were actually carried out.

With regards to the Main Gas Hills area, located just north of Beaver Rim, Strathmore drilled several monitor wells, with holes that intercepted mineralization outside of areas previously tested by drilling.

Strathmore has been actively advancing its mine permit application for the property as well as source materials license application to the US Nuclear Regulatory Commission, it said.

"All told, Strathmore's Gas Hills Uranium Project has significant potential to drill and discover additional uranium deposits," the report concluded, noting that further work is recommended by the company, including continued mine and mill permitting activities.

A budget of $3.2 million was suggested to carry out this work, in addition to the $3 million budgeted by Strathmore for ongoing activities currently underway.

Vancouver, Canada-based Strathmore is a resource company specializing in uranium properties in the US.

The drilling program, which continues activities concluded last November, is designed to provide necessary data to advance the mine permit application for the project, due to be submitted later this year.

Drilling is focused on the Bullrush and Rock Hill areas, and to date, nine holes have been completed.

The company said that of the nine holes, all of which were drilled at Bullrush in an area previously untested, hole BR-8 intersected the strongest mineralization at 12.0 feet of 0.274% uranium.

Hole BR-9, drilled 300 feet to the south of BR-8, intersected 13 feet of 0.085% uranium. Follow up drilling in the area is scheduled, Strathmore said.

Currently, the drill rig has moved from Bullrush and is drilling at the Rock Hill zone.

At the company's Roca Honda project in New Mexico, phase II, III and IV of the feasibility study are now underway, targeted for completion by the third quarter of this year. The Environmental Impact Study is scheduled for publication in the first half of 2012, while a mill license application is targeted for submission to the US Nuclear Regulatory Commission in early 2012.

At the Gas Hills project in Wyoming, new drill data obtained from the purchase of two data libraries, in addition to a supplementary drill program carried out late in the year, will allow for the completion of NI 43-101 reports and the submission of a mine permit application in the first half of this year.

Historically, Gas Hills was the second largest uranium producing region in the United States, having produced in excess of 100 million pounds of uranium concentrates from 1957-1989.

At year-end 2010, the company had working capital of $22.7 million and no debt. During the last two years, Strathmore has been joint venturing or monetizing non-core assets to enhance shareholder value. The company also raised $8.3 million this month through a non-brokered private placement.

In January, Strathmore began trading on the TSX. It was up 7.5% today, trading at $1.29 as of 11:30am EST.

The Vancouver headquartered, US focused company will retain its current trading symbol "STM".

"We are proud to be listed on the TSX, which is the premier global exchange for the mining industry,” Strathmore's CEO, David Miller commented.

“Strathmore's graduation to a full TSX listing not only represents an important milestone for the Company, but also demonstrates the commitment and progress made by our team to advance our uranium projects, particularly the Roca Honda property, which we believe is one of the best and highest grade undeveloped uranium deposits in the United States."

The Roca Honda Uranium Project is a joint venture between Strathmore (60%) and Sumitomo (40%), located in McKinley County, in the Grants Mineral Belt of North West New Mexico.

The property is around 16 miles northeast of Grants, and 23 miles away from Milan, New Mexico, via the New Mexico Highway 605.

In addition to this paved highway, ranch and dirt roads offer access across the property, although because of disuse, most of these require 4-wheel drive at the moment, and will need some maintenance going forward. 

The project is seen as a “company maker” by Strathmore, suggesting it has the potential to be “one of the largest and highest grade proposed uranium mines in US in over 30 years”. The property totals 1,840 acres and consists of 63 unpatented mining claims totalling approximately 1,200 acres, and an adjoining New Mexico State General Mining lease totalling 640 acres.

"With OTCQX, Strathmore can now provide US investors with an improved trading platform that is efficient, transparent, and provides for trading liquidity when transacting shares of Strathmore in the United States, " said president Steven Khan.

Strathmore has about 86,700 acres of potential uranium producing lands, of which 80% is in Wyoming and 20% in New Mexico.

The company's two main uranium projects are Gas Hills in Wyoming and Roca Honda in New Mexico, consisting of 33 thousand acres and 1.8 thousand acres, respectively.

The Vancouver-based company controls more than 34,000 acres of mineral claims in the Gas Hills district, an area that produced 100 million pounds of uranium concentrates from 1957-1989.

Strathmore said the majority of permitting work carried out thus far at the site has been to support the submission of a mine permit application for George-Ver, anticipated in the second quarter of 2011.

The company is also planning to mine additional deposits in the Gas Hills area and has initiated the gathering of background data necessary for additional submissions, it said.

In addition, Strathmore has begun the process for a US Nuclear Regulatory Commission (NRC) permit application for the construction and operation of a conventional uranium mill in the Gas Hills area, expected to be submitted in the first half of 2012.

During the recent field season at Gas Hills, a total of 9,290 feet was drilled in all areas, with six monitor wells installed, seven core holes completed, and twelve additional holes drilled to tighten up drill patterns, where pit designs were near complete or where the company was looking for extensions to existing mineralization.

At the George-Ver Mine site area, core hole GVS-16C encountered, at a depth of 188.5 feet, an intercept of 15.0 feet grading 0.092% eU3O8, which included an intercept of 6.5 feet at 0.197% eU3O8.

In the Day Loma zone, one exploration hole, DLS-01, encountered significant mineralization, according to the company, at 385.4 feet deep, 73.0 feet thick, 0.062% eU3O8, including an intercept of 10.5 feet grading 0.325% eU3O8.

Independent technical reports for the Day Loma, Loco-Lee and George-Ver areas will be completed in the second quarter of next year.

Strathmore was up nearly 5% on Thursday, trading at $1.08 as of 1:48pm EST.

The Juniper Ridge property, also known as Red Creek, comprises 197 claims and one state minerals lease totaling 4,710 acres.
Under the terms of the deal, Crosshair has paid a US$25,000 non-refundable deposit for the property and is obliged to pay an additional US$175,000 within two days of TSX approval, expected around November 15th.

Further payments, comprised of both cash and shares, will be made to Strathmore yearly, based on the amount of measured, indicated and inferred resources  as determined by a NI 43-101 compliant report, and eventually per pound of proven and probable uranium reserves.

Strathmore will also retain a 2% gross revenue royalty on the property, with Crosshair having the option to repurchase this royalty at any time during the first three years after commercial production at the site begins.

Juniper Ridge, which was originally discovered by Urangesellschaft U.S.A. in the 1970s, has a historical resource estimate of 5.9 million tons, grading 0.063% uranium for a total of 7.4 million lbs and 5.2 million tons grading 0.067% uranium for a total of 6.97 million lbs.

The transaction is still subject to regulatory approval.

The Roca Honda property is held by Strathmore, who owns 60%, and Sumitomo of Japan, who owns the remainder, under their jointly owned subsidiary, Roca Honda Resources.

Throughout 2010, Strathmore completed a number of achievements operationally, including the advancement of the ongoing permitting process for the property.

In October 2009, Strathmore announced that it submitted its mine permit application for the proposed development of the underground uranium mining project to the New Mexico Mining and Minerals Division and the U.S. Forest Service (USFS).

Early in 2010, as part of the entire review process, Mangi Environmental Group was chosen as an independant consultant to conduct the Environmental Impact Statement (EIS) for the project. In August, this process formally began with a kick-off meeting between the state and federal agencies and Mangi. 

In September, Mangi developed a "Description of Proposed Action" and EIS project schedule to be used to initiate the public participation process, which will begin later in the fall, to fully inform the local citizens of RHR's plans.

Also last month, a draft phase I feasibility report, which identified data requirements and analyzed project planning issues, was completed and is currently under internal review. Phases II and III of the four-phase study are now underway. Phase II addresses revisions required to upgrade the NI 43-101 resource at the site, while Phase III examines the design and feasibility analysis of the Roca Honda mine.

Strathmore said that it expects the USFS, EIS, and state agency permit review to continue through early 2012, in accordance with the schedule provided by Mangi.

For 2011, permitting will focus on the continued development of site specific baseline characterization data, the generation of necessary mine and support facility engineering designs, and working with the state and federal agencies as they continue their review and conduct the environmental assessment leading to the preparation of the final EIS.

In addition, Strathmore recently resumed data gathering for the preparation of a future U.S., Nuclear Regulatory Commission (NRC) permit application for construction and operation of a conventional uranium mill. During the last year, the company performed archaelogical studies of the site, conducted preliminary soils characterization investigations, completed a surface radiological background survey as well as air quality and meteorological investigations.

Next year, the company will advance its existing mill design to the 60% level and develop a tailings disposal design, it said.

Data from the drill program will allow the completion of NI 43-101 compliant resource calculations, as well as the advancement of the mine permit application, expected to be submitted in the second quarter of 2011.

The fall 2010 program for the Gas Hills will consist of approximately 100 drill holes totalling 25,000 feet in four targeted areas: George-Ver/Frazier-Lamac, Day Loma, Loco-Lee, and Rock Hill.

The company said that the purpose of the drilling is to confirm and expand known areas of mineralization on the site, and to help determine final pit designs as well as enable core sampling for further metallurgical testing.

Eight geotechnical holes are planned as part of a preliminary evaluation of a mill/heap leach facility/mill tailings site, it said.

Historically, the Gas Hills Uranium District was the second largest uranium producing region in the U.S. with total production exceeding 100 million pounds.

"Strathmore is the dominant player in the Gas Hills with a land position exceeding 34,000 acres and the Company's technical personnel has extensive mining experience here. Today's announcement represents a part of the ongoing permitting activities necessary for the long-term sustainable development of the Gas Hills deposits," said Strathmore's CEO David Miller.

The fall 2010 drill program is scheduled to be completed by mid-November.

Strathmore specializes in the acquisition, exploration and development of advanced uranium properties in the United States.

The report includes updates for extensive permitting activities, and details on the commencement of a phased feasibility study. In addition, the report confirmed mineral resource figures previously collected and concluded that “there is very good potential to drill additional uranium mineralisation”, a further signal the Strathmore are on good course to develop one of the best and highest grade uranium deposits in the United States.

Strathmore Minerals is a Canadian based resource company, specialising in the development of uranium deposits in the United States, often through a joint venture partner. The company has market capitalisation of C$49.2 million, with C$10.5 million in cash and with C$9.1 million in working capital. The company’s key assets include their two primary uranium deposits; Roca Honda and Gas Hills, as well as nine other projects spread throughout the United States, with a combines total NI 43-101 compliant resource estimate of 36.2 million pounds of measured and indicated resource, and 21.4 million of inferred resource.

The Roca Honda Uranium Project is a joint venture between Strathmore (60%) and Sumitomo (40%), located in McKinley County, in the Grants Mineral Belt of North West New Mexico. The property is around 16 miles northeast of Grants, and 23 miles away from Milan, New Mexico, via the New Mexico Highway 605. In addition to this paved highway, ranch and dirt roads offer access across the property, although because of disuse, most of these require 4-wheel drive at the moment, and will need some maintenance going forward.  The project is seen as a “company maker” my Strathmore, suggesting it has the potential to be “one of the largest and highest grade proposed uranium mines in US in over 30 years”. The property totals 1,840 acres and consists of 63 unpatented mining claims totalling approximately 1,200 acres, and an adjoining New Mexico State General Mining lease totalling 640 acres.

The uranium mineralization occurs as uranium – humate – cemented sandstone, are irregular in shape and range from a few feet in width and length to bodies several tens or hundreds of feet long. The latest NI 43-101 resource estimate on the property has confirmed the historical numbers for Section 9 and Section 10 of the property, which were compiled by the previous owners Kerr – McGee, and updated by its successor, Rio Algom in 1995. For Sections 9 and 10, considering a cut off GT (i.e. grade multiplied by minimum depth) of 0.6 (0.1% triuranium octoxide x 6 feet), the report shows a measured resource of 1.3 million tonnes, grading 0.23% triuranium octoxide (U3O8), for a resource of over 6 million pounds of U3O8. The report showed an indicated resource of 2.5 million tonnes grading 0.23% U3O8, for an indicated resource of 11.5 million pounds of U3O8. In addition to this, and again considering a cut off GT of 0.6, the report showed an inferred resource of 4.5 million tonnes grading 0.17% U3O8, for a resource of 15.8 million pounds of U3O8.

Kerr-McGee had previous compiled reserve estimates for Section 16 of the property, although this could not be confirmed as NI 43-101 compliant due to the lack of necessary documentation, the author of the latest report did not that in his opinion, the resource estimate for Section 16 could in fact double. The original estimates showed 197,000 tonnes of resource in the section, at an average grade of 0.23% U3O8, for a total of 886,621 pounds U3O8. Prior to entering the joint venture with Strathmore, Sumitomo also independently prepared a resource estimate of the Roca Honda property, using geostatistical mining software. Again this is not considered NI 43-101 compliant. Considering a cut off GT of 0.6, this estimate showed a total of 7.4 million tonnes of resource, averaging a grade 0.25% U3O8, for a contained total of 36.2 million pounds of U3O8.

During the first quarter of this year, Strathmore underwent costs of around C$408,000 at the Roca Honda property, the majority of which was on the feasibility study (C$132,000) and permits and regulatory requirements (C$105,000). To date, the company has spent around C$12.4 million on exploration costs for the property. This latest report suggests that Phase 1 or the recommended continued exploration and development of the property will cost in the region of U$2.7 million (US$2.6 million) over the next 12 months.

Going forward, Strathmore have contracted SWRP to prepare a phased feasibility study, which will include a mineral reserve estimate or a revised mineral resource estimate using underground mining methods. The results of this report are expected in August 2011. This study will consider revising the current mineral resource estimate, and will require using cut off factors not only as before, but also with an additional cut off levels of a minimum mining thickness of 6 feet, and an increase in the lower grade cut off to reflect estimated underground mining costs.

This latest report shows the potential for the Roca Honda Project and the added value it could bring to Strathmore as exploration and development continues. With the phased feasibility study underway, as well as ongoing exploration activities to extend current resource estimates, there is a lot of potential for buoyant newsflow for Strathmore over the next year or so.

Source: Strathmore Minerals Website

Strathmore believes that Roca Honda is one of the best and highest grade undeveloped uranium deposits in the United States.  For 2010, the JV has commissioned Scott Wilson Roscoe Postle Associates to prepare a Bankable Feasibility Study (BFS) which will also be accompanied by a BFS of a mill processing and tailing facilities. On-going permitting activities will include baseline environmental monitoring and sampling, metallurgical studies, mine planning, reclamation planning, and mill design studies.

Gas Hills, Wyoming

Historically, the Gas Hills Uranium District was the second largest uranium producing region in the United States during the last uranium cycle, with total production exceeding 100 million pounds.  The majority of the production in this area was from conventional open-pit mining.  The Gas Hills is located 45 miles east of Riverton Wyoming, home of the Company's US exploration and development office.  John DeJoia, Sr. VP New Mexico Operations, Jim Crouch, VP Wyoming Operations, and Tom Powell, Strathmore's Senior Landman, all have extensive experience in mining management in the Gas Hills region.

Strathmore’s land holdings now total more than 33,000 acres (13,000+ Ha).  Permitting is continuing in 2010. To date, over one year of water quality and baseline environmental data has been collected, in addition to cultural (archeology), floral-faunal, meteorological and air sampling studies. Engineering designs of the planned open pits are being refined and milling options are under review.

Strathmore is reviewing exploration plans for the highly prospective, unexplored portion of the Gas Hills known as "Beaver Rim" which is located south of the designed open pit deposits.  Historical drill logs show indications of up to 5 uranium roll fronts lying beneath the Company's claims, which total ~16,000 acres.

Source: Strathmore Minerals Website

Financial Highlights

With the recent closings of both the equity financing and Pine Tree-Reno Creek property sale, Strathmore now has approximately C $29 million in working capital with no debt.  As a result the Company is well positioned for the future and will use the proceeds for the ongoing advancement of the Roca Honda and Gas Hills development projects and general working capital.

Uranium Outlook for the Future

Speaking at a meeting of miners and investors in Hong Kong in March, some industry experts claimed prices could jump to $75-100/lb due to rising demand for nuclear fuel by China, India, and South Korea.

The industry is expected to see some hyper activity because utilities will discover increasing demand for electricity amidst rapid growth globally for new nuclear power plants. There are 436 reactors operating worldwide with 56 under construction and four times that number in the planning stage.

Other analysts believe that the current uranium price is too low to stimulate future supplies necessary to cover the new reactor build-out. 

Despite the current weak uranium market, Strathmore has reached a number of corporate milestones by focusing on its long-term development strategy. While higher uranium prices are necessary to stimulate additional development, Strathmore is positioning itself to achieve its ultimate goal of becoming a future leading uranium producer in the United States.

In January, Strathmore and Bayswater Uranium Corporation agreed a revised deal for the Pine Tree-Reno Creek uranium properties in Wyoming. Bayswater will pay US$17.5m in cash, US$2.5m in Bayswater common shares, and a 5% production royalty was signed. The sale is expected to close by April 6th 2010. The agreed deal followed a series of negotiations, as Strathmore had also received a competing offer from an unnamed foreign corporation.

Strathmore’s flagship Roca Honda project, in New Mexico, is being developed through a 60%:40% joint venture with Japan’s Sumitomo Corp. In the year ahead the JV plans to commission a Bankable Feasibility Study (BFS), which will also be accompanied by a BFS of a mill processing and tailing facilities. Furthermore, in 2010 on-going permitting activities will include baseline environmental monitoring and sampling, metallurgical studies, mine planning, reclamation planning, and mill design studies.

The extensive development work builds on Strathmore’s progress in 2009.  The company successfully submitted the Mine Operations and Mine Water Discharge Plan permit applications on schedule and under budget. The state and federal regulatory agencies deemed the application to be ‘administratively complete’ and accepted them for technical review. This achievement marked a major milestone for Strathmore, who began permitting Roca Honda in 2006.

Preparation for the forthcoming technical and public review proceedings continues, and Strathmore also intends to prepare an Environmental Impact Statement (EIS) in 2010. Similarly the company will commence environmental baseline field programs at the Pena Ranch property, the planned site of the uranium mill which will process the Roca Honda ore. Once complete the study will support the license application to the Nuclear Regulatory Commission.

In 2009 at the Gas Hills Uranium District Wyoming, Strathmore continued to collect baseline environmental data as part of its ongoing permitting efforts at the George-Ver deposit. This year mine permitting activities will continue including groundwater quality monitoring, exploration and pit delineation drilling, engineering design of the open pits, and preparation of NI 43-101 reports. Strathmore also plans a preliminary assessment of a mill site to determine whether it should proceed with permitting activities in pursuit of a mill permit and source materials license.

George-Ver is the first in a series of deposits planned for sequential development, permitting work was also carried out at the Day Loma and Rock Hill deposits. Additionally Strathmore is reviewing exploration plans for the highly prospective, unexplored portion of the Gas Hills, known as "Beaver Rim". Exploration drilling may begin later in the year, subject to budgeting.

The scheduled work will be funded partially funded by January’s C$8.38m private placement, in addition to the proceeds from the pending Pine Tree-Reno Creek disposal.

Upon closing, NCA will gain a 25% interest following a $5m cash payment plus an additional $250,000 in Bayswater common shares. By the end of June 2010, the uranium explorer’s interest will increase to 51%, subject to a further cash payment of $5m and another $250,000 in Bayswater common shares.

In December 2010, the company will have acquired a total interest of 75% in the uranium project, following a $10,500,000 cash payment and the issuance of $500,000 Bayswater shares.

Alternatively by the end of 2010, NCA may opt to forego the payments subject to delivering a Bankable Feasibility Study (BFS) by December 31st 2013. The deferred $10.5m (Cash & Stock) payment will be due within 90 days of receipt of a BFS. Should the payment not be met, a new Joint Venture will be established between the companies on a 51-49% basis.

Beyond this point, If NCA doesn’t acquire the remaining 25%, Strathmore has the right to retain its interest or exchange it for a 5% royalty from sales of all uranium and uranium by-products produced from the Pine-Tree Reno Creek property.

To date, Strathmore has completed NI 43-101 resource estimates for the Reno Creek and Southwest Reno Creek lands within the overall project.

Strathmore has been exploring the Pine Tree-Reno Creek Properties through a joint venture with American Uranium Corporation (OTCBB: ACUC) since 2007. Under the JV AUC has been working under option, whereby the Denver headquarter exploration company can earn a 22.5% interest by spending $12.375, and up to 60% interest through exploration expenditures totalling $33 million by 2013.

This decision means that the Strathmore’s three submissions, the Water Discharge Permit application, the Sampling and Analysis Plan and the Mine Permit application have all been deemed “administratively complete.”

The application, which was originally submitted in October, will now be circulated to other government agencies for comment as part of the technical review process.

An environmental impact analysis will be performed by the MMD, and the US Forest Service will prepare an Environmental Impact Statement (EIS) on the project. The company has been preparing for the technical review process and is also reviewing proposals for the preparation of a bankable feasibility study to begin in early 2010.

“The Joint Venture remains committed to continuing the work necessary to revitalize the Grants Uranium District and is one-step closer to becoming a uranium producer in the United States,” said chief executive of Strathmore, David Miller.

The Roca Honda property was acquired in 2004, along with the Kerr McGee uranium data base. In March 2006, Strathmore completed an independent NI 43-101 resource calculation which estimated a measured and indicated mineral resource of 17.51 million pounds triuranium octoxide contained within 3,782,000 tons at an average grade of 0.23 percent U3O8.  An additional 15.83 million pounds contained within 4,546,000 tons at an average grade of 0.17 percent U3O8 are estimated as an Inferred mineral resource.

In July 2007, Strathmore completed a joint venture agreement with Sumitomo for the development of Roca Honda.

Strathmore is currently fulfilling all reporting requirements under the US Securities Exchange Act of 1934 and is not currently listed on any US exchange. Strathmore shares will continue to trade in Canada on the TSX Venture Exchange under the symbol ‘STM’.

The company will file an application to terminate the registration with the US Securities and Exchange Commission, and its reporting obligations will be suspended. The termination will become effective 90 days thereafter.

Although the company believes it has obtained substantial benefits through its SEC registration, the current economic environment has led to a review all of its expenditures, and the costs related to the registration are disproportionate to Strathmore's size.

Strathmore Minerals is a Canadian resource company specializing in the strategic acquisition, exploration and development of uranium properties. Its primary goal is to become a leading uranium producer in the US. Its key properties are eight areas of known mineralization in the Gas Hills Uranium District of Wyoming.