Strathmore Minerals ready to sharpen focus on Roca Honda and Gas Hills uranium projects

In the coming year, Strathmore Minerals Corp (TSX: STM) said it will refocus its permitting efforts on the two core uranium development projects, Roca Honda in New Mexico and Gas Hills in Wyoming. In its 2009 year-end review, the company noted that the Pine Tree-Reno Creek disposal is expected to complete in April and subsequently its two remaining projects will receive increased attention in 2010.

Additionally, Strathmore said it is continuing with its plan to monetize or joint venture non-core projects and as such discussions are continuing.

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.