Strathmore corporate update march 2012
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Transcript of Strathmore corporate update march 2012
www.strathmoreminerals.com TSX: STM
Strathmore Minerals Corp Corporate Update
PDAC, Toronto
March, 2012
www.strathmoreminerals.com TSX: STM
The following information may contain forward-looking statements. Forward- looking statements
address future events and conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements. 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, the Roca Honda and Gas Hills projects; and labour relations matters.
All historical resource estimates were completed prior to the implementation of NI 43-101
and a qualified person has not completed sufficient work to classify the historic mineral
resources as current mineral resources, and is not treating the historic resources as
current. Hence, they should not be relied upon. Technical information has been prepared in
accordance with the Canadian regulatory requirements set out in NI 43-101, and reviewed by
David Miller, Chief Executive Officer for Strathmore Minerals Corp., PG 363 Wyoming and
Society for Mining, Metallurgy & Exploration Registered Member 2205106RM, a Qualified
Person under National Instrument 43-101. It should be noted that mineral resources which
are not mineral reserves do not have demonstrated economic viability as defined by NI 43-
101 guidelines.
www.strathmoreminerals.com TSX: STM
SHARE STRUCTURE
SHARE PROFILE
Stock Symbol: STM (TSX)
STHJF (OTCQX)
Working Capital Estimate: C $20.5 MM
104,525,951 shares outstanding
114,884,951 shares fully diluted
Korea Electric Power Corp (KEPCO) owns ~14%
Uranium Market
“We do not think there is sufficient uranium to cover the needs of 2014-2020”
Adam Schatzker, RBC Capital (June, 2011)
• In 2010, China surpassed USA as the largest energy consumer in the world
• China, India, & S. Korea constructing 37 nuclear power plants; 234 planned /proposed
• China, India, & S. Korea all net importers of uranium
Current Spot
Price (Feb 27)
US $52.00/lb
Long-Term
Price (Feb)
US $60.00/lb
www.strathmoreminerals.com TSX: STM
www.strathmoreminerals.com TSX: STM
Management Team
David Miller, PG (Wyoming) - CEO, Director
Steven Khan, MBA - Chairman, President, Director
John DeJoia, PG (New Mexico) - Sr. V.P. New Mexico Operations
Juan Velasquez, MBA - V.P. Gov’t, Regulatory & Environmental Affairs
James Crouch, BSc. - V.P. Wyoming Operations
Patrick Groening, CA - CFO
Craig Christy, M.A. - Corporate Secretary & Investor Relations
www.strathmoreminerals.com TSX: STM
Corporate Strategy
Active in the 2 largest uranium districts in the USA
Gas Hills Uranium District – Wyoming > 100 million lbs. cumulative uranium production
Grants Mineral District – New Mexico > 340 million lbs. cumulative uranium production
To become a leading uranium
producer in the United States
www.strathmoreminerals.com TSX: STM
Why are we different?
• Timely Acquisitions
Properties acquired 2003-04 when uranium price US $7-$15 per lb
One of the largest holders of in-ground uranium resources in the USA
• Strong Management & Technical Expertise 200+ Man-years of uranium experience
• Advanced Company Maker Projects (Limits exploration risk)
• Roca Honda, NM permit application submitted October 2009
• Gas Hills, WY permit application submittal in 2012
• Long-life uranium assets in politically stable region
www.strathmoreminerals.com TSX: STM
Recent Developments
• Korea Electric Power (KEPCO) acquired ~14% interest in STM via
US $8 MM Private Placement at C$ .55 per share
• Proceeds for 2012 Phase I program: Drilling at prospective Beaver
Rim & ongoing permitting and drilling of Main Gas Hills deposits
• KEPCO has option for Phase II US $32 MM Gas Hills Joint Venture
over 3 years beginning in 2013
• Transaction provides for long-term off-take agreements based on
KEPCO’s equity ownership in STM and Gas Hills
Why the United States ?
United States was the largest uranium producer in the world in the 20th century
104 nuclear power plants consume 50-55 MM lbs annually; USA produced 4.2 million lbs (2010)
Russian HEU contract expires in 2013; DOE sales contracted to 2013
Strathmore’s technical team has over 200 years uranium mining experience in the United States
United States Uranium Production and
Consumption 1980/2010
60
50
40
30
20
10
1980 2010
Production Consumption Production Consumption
Millions lbs U3O8
www.strathmoreminerals.com TSX: STM
Where Did it Come From?
US Production: Where was it Mined?
0
100,000,000
200,000,000
300,000,000
400,000,000 New Mexico
Wyoming
Utah Colorado
Texas Arizona
Nebraska
Po
un
ds U
3O
8
Tonnes U
150,000
100,000
50,000
www.strathmoreminerals.com TSX: STM
www.strathmoreminerals.com TSX: STM
Largest Uranium Reserves In Wyoming & New Mexico
Copper
Mountain
Gas Hills
Nose Rock
Church Rock
Dalton Pass
Roca Honda
Jeep
Shirley
Basin
Sky -
(Cedar
Rim)
Juniper
Ridge
Ambrosia Lake
Leases
Kaycee
Marquez
www.strathmoreminerals.com TSX: STM
www.strathmoreminerals.com TSX: STM
Property Resource Grade lbs. U3O8 Method
Roca Honda, NM Measured
Indicated
M & I
Inferred
1.3 MM @ 0.23%
2.4 MM @ 0.23%
3.7 MM @ 0.23%
4.5 MM @ 0.17%
6.0 million
11.5 million
17.5 million
15.8 million
Underground
Church Rock, NM Measured
Indicated
M & I
Inferred
1.7 MM @ 0.10%
4.5 MM @ 0.10%
6.2 MM @ 0.10%
1.9 MM @ 0.09%
3.2 million
8.6 million
11.8 million
3.5 million
ISR / Underground
Marquez, NM Measured
Indicated
M & I
Inferred
1.0 MM @ 0.13%
2.6 MM @ 0.13%
3.6 MM @ 0.13%
2.1 MM @ 0.12%
2.5 million
6.6 million
9.1 million
4.9 million
ISR or Underground
Nose Rock, NM Measured
Indicated
M & I
Inferred
0.31 MM @ 0.15%
0.58 MM @ 0.15%
0.88 MM @ 0.15%
0.16 MM @ 0.14%
0.9 million
1.6 million
2.5 million
0.45 million
Underground
Dalton Pass, NM Measured
Indicated
M & I
Inferred
0.45 MM @ 0.09%
1.2 MM @ 0.10%
1.6 MM @ 0.10%
0.90 MM @ 0.08%
0.8 million
2.2 million
3.0 million
1.5 million
ISR / Underground
Sky, WY
Jeep, WY
Indicated
Inferred
Measured
Indicated
M&I
Inferred
0.66 MM @ 0.07%
0.05 MM @ 0.05%
0.22 MM @ 0.08%
0.08 MM @ 0.06%
0.31 MM @ 0.07%
0.15 MM @ 0.05%
0.9 million
0.05 million
0.4 million
0.1 million
0.5 million
0.15 million
ISR
45.3 Million M&I NI 43-101 lbs U3O8
26.3 Million Inferred 43-101 lbs U308
www.strathmoreminerals.com TSX: STM
Permitting for Production
Roca Honda, New Mexico Mine Permit Review Underway
GRANTS MINERAL BELT
New Mexico
Largest Uranium District in the U.S.
340 Million pounds produced
CO UT
WY
NM
www.strathmoreminerals.com TSX: STM
www.strathmoreminerals.com TSX: STM
• Largest historical uranium producing district in the world > 340 million lbs - Only recently surpassed by the Athabasca Basin
• Many uranium companies active in New Mexico
• Strong local government and community support
• State regulatory agencies cooperative
Grants Mineral District
www.strathmoreminerals.com TSX: STM
“Company Maker” Project - One of the Largest & Highest Grade proposed
uranium mines in US in over 30 years
Roca Honda Resource Summary
Roca Honda Resources LLC Joint Venture
(Strathmore 60% / Sumitomo 40%)
Previous Operator Resource Classification Tonnage Grade % U308 lbs U308
Kerr McGee
NI 43-101 Measured
NI 43-101 Indicated
NI 43-101 M + I
1,305,000
2,477,000
3,782,000
0.23
0.23
0.23
6,035,000
11,477,000
17,512,000
NI 43-101 Inferred 4,546,000 0.17 15,832,000
www.strathmoreminerals.com TSX: STM
Roca Honda Mine Permit Submitted Oct 2009
www.strathmoreminerals.com TSX: STM
• Mine Development office opened in Santa Fe, 2005
• Mine Permit application submitted & deemed “Administratively Complete” Q4 2009
• Feasibility Study under preparation by Roscoe Postle Associates Inc - completion targeted for Q3 2012
• Environmental Impact Statement (EIS) to be completed by Q4 2012; Mine Permit decision expected in 2013
• Sumitomo to contribute ~ US $50 million on final investment decision to complete 40% earn-in
Roca Honda Resources LLC Joint Venture
(Strathmore 60% / Sumitomo 40%)
www.strathmoreminerals.com TSX: STM
Roca Honda Resources LLC Joint Venture
(Strathmore 60% / Sumitomo 40%)
Monitor Well Drilling and Installation
New Mineralized Zone found in monitor well.
Chemical Analysis 10’ grading 0.67% U308
6’ grading 0.73% U308
www.strathmoreminerals.com TSX: STM
Permitting for Production
GAS HILLS, WYOMING Mine Permit Application Submittal in 2012
GAS HILLS
URANIUM DISTRICT
100 Million pounds produced
WY
NM
GAS HILLS URANIUM DISTRICT
WYOMING
NO INFRASTRUCTURE ISSUES
• Paved Road (45 miles)
• Big Electric Power installed
• Natural Gas available
• Geothermal available
www.strathmoreminerals.com TSX: STM
www.strathmoreminerals.com TSX: STM
GAS HILLS URANIUM DISTRICT
• 2nd largest historical producing district in the USA
• CEO David Miller & Technical Team have extensive Gas Hills
experience
• Largest in-ground resources held by Strathmore & Cameco
• Highly prospective 16,000 acre Beaver Rim area to the south of
Main Gas Hills open pit deposits
• Existing infrastructure: roads, power & natural gas
• Sweetwater Mill located 70 miles from the property
www.strathmoreminerals.com TSX: STM
Gas Hills Uranium Development Project
(Strathmore 100% / KEPCO 40% earn-in)
• US $8 MM budgeted for drilling at prospective Beaver Rim &
ongoing permitting & drilling of Main Gas Hills deposits in 2012
• KEPCO can earn 15% by spending US $12 million in 2013
• KEPCO can earn to 27.5% by spending US $10 million in 2014
• KEPCO can earn to 40% by spending US $10 million in 2015
• KEPCO entitled to production off-take based on project ownership
www.strathmoreminerals.com TSX: STM
Unmined
Uranium Roll-Front
Deposit
Gas Hills, Wyoming
STM Holdings - 35,000 acres
Historical estimate 10.8 MM tons @ 0.08% U308
Total - 16.2 million lbs (Not NI 43-101 Compliant)
Near surface open pit production
www.strathmoreminerals.com TSX: STM
Deposit Resource Tonnage Grade lbs. U3O8 Method
George-Ver Historical 1.0 million 0.07% 1.5 million Open Pit
Bull Rush
Historical 1.7 million 0.07% 2.3 million Open Pit
Loco Lee Historical 3.4 million 0.07% 4.7 million Open Pit
Frazier Lamac Historical 0.7 million 0.11% 1.5 million Open Pit
Day Loma Historical 0.5 million 0.21% 2.0 million Open Pit
Rock Hill Historical 0.9 million 0.05 %
.90 million
Open Pit
Andria Historical 0.8 million 0.06% .95 million Open Pit
Sunset, Amazon,
Badlands Historical 1.8 million 0.06% 2.4 million Open Pit
Not NI 43-101
Compliant Total 10.8 0.08% 16.2 million Open Pit
Gas Hills Properties, Wyoming
Summer/Fall 2011 Drilling
New Mexico: Roca Honda,
installation of monitoring wells
at uranium mill site location
Wyoming: Gas Hills,
Targeting new uranium
mineralization along trend
at Day Loma
www.strathmoreminerals.com TSX: STM
Cameco Drill Rigs Operating Near
Strathmore’s Beaver Rim Property, Gas Hills,
September, 2011
www.strathmoreminerals.com TSX:STM
www.strathmoreminerals.com TSX.: STM
Production Plans
Roca Honda, NM
Mine
Mill
Gas Hills, WY
Mine
Mill
Permitting Construction Production
RATE 1-3 Million
Pounds/year
Underground Mine
SUBJECT TO PERMITTING AND URANIUM MARKET
2011 2012 2013 2014 2015 2016 2017
RATE 0.5 - 2 Million Pounds/year
www.strathmoreminerals.com TSX: STM
Non-Core Property Dispositions
• Closed Pine Tree-Reno Creek WY sale in 2010 to Bayswater Uranium for
US $30 million value; US $17.5 MM cash & US $2.5 MM shares
• Strathmore retains 5% gross revenue royalty valued at US $10 million
• Strathmore holds up to 4% gross revenue royalty on WY leases sold to
Peninsula Energy Q4 2009; “Lance” project targeted for 2012 production
• Juniper Ridge WY phased sale to Crosshair Energy Q4 2010; Crosshair
spent $1.9 MM in 2011; Initial NI 43-101 compliant resource estimate
completed Jan 2012; Strathmore holds 2% gross revenue royalty
• Eight additional projects available for sale or joint venture
www.strathmoreminerals.com TSX: STM
Strathmore Uranium Projects
Currently For Sale or Joint Venture
Significant exploration and development potential
Property Summary reports available from [email protected]
• NM: Marquez: 43-101 (3.6 MM tons @ 0.126% = 9.1 million lbs M&I*) - 80 % unexplored
• NM: Church Rock: 43-101 (6.2 MM tons@ 0.10% = 11.8 million lbs M&I*) (ISR)
• NM: Nose Rock: 43-101 (.9 MM tons @ 0.14% = 2.6 million lbs M&I*) & Historical Resource
• NM: Dalton Pass: 43-101 (1.6 MM tons@ 0.10% = 3 million lbs M&I*)
• WY: Juniper Ridge: (5.2 MM tons@ 0.067% = 7 million lbs Historical (Not 43-101 compliant)
• WY: Pine Tree-Reno Creek Sold for US $30 million value cash/stock/royalties
• WY: Kaycee: Exploration potential
• WY: Copper Mountain: Historical Resource & Exploration Potential
• WY: Ketchum Buttes: Historical Resource & Exploration Potential
• WY: Sky: 43-101 (.6 MM tons @ 0.07% = 1 million lbs M&I*) & Exploration Potential (ISR)
• WY: Shirley Basin: Historical Resource & Exploration Potential
• WY: Oshoto State Leases: Exploration Potential
*See www.strathmoreminerals.com/s/ResourceTable.asp for detailed property resource summaries, including total Measured, total Indicated, & total Measured + Indicated resources.
SOLD
SOLD SOLD
www.strathmoreminerals.com TSX: STM
• Complete US $8 MM Gas Hills drilling and permitting program
• Submit Mine Permit Application for Gas Hills
• Initiate Preparation of Gas Hills Feasibility Study Q1 2012
• Complete Roca Honda Feasibility Study Q3 2012
• Submit Peña Ranch NRC Mill license application Q3 2012
• Roca Honda EIS to be completed Q4 2012; Mine Permit
decision expected in 2013
• Continue to Monetize non-core Properties
• Review other Opportunities for Enhancing Shareholder Value
Plans for 2012
www.strathmoreminerals.com TSX: STM
1. Strathmore Knows Uranium
Management team has extensive uranium mining experience
Advancing two core projects in the two largest Uranium Districts in USA
2. Partnered with Sumitomo & KEPCO
Roca Honda one of the largest and highest grade proposed uranium mines in the
USA in over 30 years. Strategic investment made by KEPCO with initial 14% stake
3. Large Uranium Asset Base-Non-Core Being Monetized
Leverage to higher uranium prices - Low valuation relative to peer group
Why Invest in Strathmore?
www.strathmoreminerals.com TSX: STM
•David R. Miller, PG (Wyoming) - CEO, Director,
Strathmore Minerals Corp.
David's primary professional focus has been on
uranium exploration, development, and mining, and
his career has spanned over 20 years with a chain
of companies that started with Utah International
and evolved into AREVA, the French Nuclear
Power Conglomerate. In addition he has consulted
extensively for the IAEA (International Atomic
Energy Commission) in Austria and China. David is
a recognized expert in the nuclear and energy field
and has been seen, heard, and read in the New
York Times, BBC, CNBC, CNN, Business News
Network, Wall Street Journal, Globe and Mail, and
Barron's. He is also a co-author of "Investing in the
Great Uranium Bull Market." A fifth term member of
the Wyoming Legislature, serving District 55 --
Riverton, David has served on Minerals, Revenue,
Education, Corporations, and Health & Labor
Committees. He was an original appointee to the
Wyoming Energy Commission and currently serves
on the NCSL High Level Radioactive Waste
Committee. David graduated from the University of
Missouri with a degree in Geology and is a
Registered Professional Geologist in Wyoming. Mr.
Miller is the architect responsible for assembling
Strathmore's uranium property acquisitions in 1997,
renewing it in 2003, when the uranium price turned
upward, and subsequently implementing the
Company's current development strategy. He was
appointed President in 2004 and CEO in 2008.
•Steven Khan, MBA, CFA - Chairman, President,
Director, Strathmore Minerals Corp.
Steven Khan has spent close to twenty years in all
aspects of the investment industry, including retail,
and later institutional sales, corporate finance,
capital markets, and investment banking. He has
held several senior management roles including:
Executive Vice-President, President, Chief
Executive Officer, and Chairman of a number of
regional and national full service Canadian
investment brokerage houses that mostly focused
on venture capital financings. In 2003, he started his
own consulting firm that focused on business plan
development and capital fund raising for a number
of early stage private and public companies. In the
past several years, Mr. Khan has successfully
initiated, completed or partnered several major
corporate development initiatives both domestically
and internationally, including government partnered
ventures in China and Korea. Mr. Khan was also an
instrumental part of the team that negotiated
Strathmore's Roca Honda Joint Venture with
Sumitomo Corp of Japan in 2007. In January 2008,
after serving as Executive Vice-President since
2003, Mr. Khan accepted the position of President
of Strathmore Minerals Corp. A graduate of the
University of British Columbia with a BSc. (1978)
and MBA (1983), Mr. Khan also holds a Chartered
Financial Analyst designation (CFA), is a member of
the CFA Institute, and for many years was a long-
time Fellow of the Canadian Securities Institute.
www.strathmoreminerals.com TSX: STM
CONTACT INFO:
Phone: 1-800-647-3303
Email: [email protected]
www.strathmoreminerals.com
#700- 1620 Dickson Ave.
Kelowna, BC V1Y 9Y2
Canada