Strathmore Minerals Corp Corporate Update

Transcription

1 Strathmore Minerals Corp Corporate Update Corporate Update September,

2 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 estimates were completed prior to the implementation of NI A qualified person has not completed sufficient work to classify the historic estimates current mineral resources, and is not treating the historic estimates as current mineral resources. Hence, they should not be relied upon. Strathmore cautions that reference to Preliminary Economic Assessment (PEA) is preliminary in nature and includes inferred resources that are considered to be too speculative geologically for economic consideration that would enable them to be classified as mineral reserves. There is no certainty that the PEA will be realized. Technical information has been prepared in accordance with the Canadian regulatory requirements set out in NI , and reviewed by David Miller, Chief Executive Officer for Strathmore Minerals Corp., PG 363 Wyoming, and Society for Mining, Metallurgy & Exploration Registered Member RM, a Qualified Person under National Instrument It should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability as defined by NI

3 SHARE STRUCTURE SHARE PROFILE Stock Symbol: STM (TSX) STHJF (OTCQX) Working Capital Estimate: C $14.3 MM 123,274,620 shares outstanding 134,741,953 shares fully diluted Korea Electric Power Corp (KEPCO) owns ~11.8% 3

4 Uranium Market BEAT THE ATOMIC CLOCK- URANIUM SUPPLY CRUNCH AND CRITICAL CATALYSTS ON THE HORIZON... David Sadowski, Raymond James (July 26, 2012) Current Spot Price (Sept 10) US $48.00 /lb Long-Term Price (Aug) US $60.50 /lb Source: The Ux Consulting Company LLC : Uranium price forecast: US $58, US $70, US $85 Mark Busuttil, JP Morgan (April 2012) China, India, & South Korea constructing 37 nuclear power plants; 234 planned China, India, & South Korea all net importers of uranium 4

5 Management Team & Directors David Miller, PG (Wyoming) - CEO, Director Steven Khan, MBA, CFA - 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 Dieter Krewedl, Independent Director-Renaissance Gold, AuEx Ventures Tim Janke, Independent Director-Renaissance Gold, AuEx Ventures Ralph Goehring, Independent Director - Former CFO Berry Petroleum 5

6 Corporate Strategy To become a leading uranium producer in the United States 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 6

7 Why are we different? Timely Acquisitions Properties acquired 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 and gold experience Advanced Company Maker Projects Roca Honda, NM - Mine permit decision expected in 2013 Gas Hills, WY - Mine permit application submittal in 2012 Copper King, WY - Positive Au-Cu PEA received Long-life mineral assets in politically stable region 7

8 Why the United States? 60 United States Uranium Production and Consumption 1980/ Millions lbs U 3 O 8 Production Consumption Production Consumption United States was the largest uranium producer in the world in the 20 th century 104 nuclear power plants consume MM lbs annually; USA produced 3.9 million lbs (2011) 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 8

9 Where Did it Come From? US Production: Where was it Mined? Tonnes U Pounds U 3 O 8 400,000,000 New Mexico 300,000, ,000, ,000,000 0 Wyoming Utah Colorado Texas Arizona 150, ,000 50,000 Nebraska 9

10 Largest Uranium Reserves In Wyoming & New Mexico 10

11 Copper Mountain Kaycee Gas Hills Jeep Sky - (Cedar Rim) Shirley Basin Juniper Ridge Nose Rock Church Rock Dalton Pass Ambrosia Lake Leases Roca Honda Marquez 11

12 33.0 Million M&I NI lbs U 3 O Million Inferred lbs U Property Resource Grade lbs. U3O8 Method Roca Honda, NM Measured Indicated M & I Inferred % % % % 6.00 million million million million Underground Marquez, NM Measured Indicated M & I Inferred % % % % 2.50 million 6.60 million 9.10 million 4.90 million ISR or Underground Nose Rock, NM Measured Indicated M & I Inferred % % % % 0.90 million 1.60 million 2.50 million 0.45 million Underground Dalton Pass, NM Measured Indicated M & I Inferred % % % % 0.80 million 2.20 million 3.00 million 1.50 million ISR / Underground Sky, WY Indicated Inferred % % 0.90 million 0.05 million ISR 12

13 Permitting for Production Roca Honda, New Mexico Mine Permit Review Underway 13

14 GRANTS MINERAL BELT New Mexico Largest Uranium District in the U.S. 340 Million pounds produced WY UT CO NM 14

15 Grants Mineral District 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 15

16 Roca Honda Resources LLC Joint Venture (Strathmore 60% / Sumitomo 40%) Company Maker Project - One of the Largest & Highest Grade proposed uranium mines in US in over 30 years Roca Honda Resource Summary Previous Operator Resource Classification Tonnage Grade % U lbs U Kerr McGee NI Measured NI Indicated NI M + I 1,305,000 2,477,000 3,782, ,035,000 11,477,000 17,512,000 NI Inferred 4,546, ,832,000 16

17 Roca Honda Mine Permit Submitted Oct

18 Roca Honda Resources LLC Joint Venture (Strathmore 60% / Sumitomo 40%) Mine Development office opened in Santa Fe, 2005 Mine Permit application submitted & deemed Administratively Complete Q Preliminary Economic Assessment (PEA) prepared by Roscoe Postle Associates Inc under internal review 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 18

19 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% U grading 0.73% U

20 Permitting for Production GAS HILLS, WYOMING Mine Permit Application Submittal in

21 GAS HILLS URANIUM DISTRICT WYOMING WY GAS HILLS NM NO INFRASTRUCTURE ISSUES Paved Road (45 miles) Big Electric Power installed Natural Gas available Geothermal available URANIUM DISTRICT 100 Million pounds produced 21

22 GAS HILLS URANIUM DISTRICT 2 nd 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 22

23 KEPCO Agreement Korea Electric Power (KEPCO) acquired ~11.8% 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 23

24 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 24

25 STM Holdings - 35,000 acres Gas Hills, Wyoming Unmined Uranium Roll-Front Deposit Near surface open pit deposits NI Inferred Resource 2.2 MM 0.12% U Total 5.6 million lbs Historical Estimate (Not NI Compliant) 9.7 MM 0.07% U 3 O MM lbs 25

26 Gas Hills Properties, Wyoming Deposit Resource Tonnage Grade lbs. U 3 O 8 Method Day Loma NI Inferred Rock Hill NI Inferred 1,600, % 4,700,000 Open Pit 600, % 900,000 Open Pit Loco Lee Historical 3,369, % 4,644,000 Open Pit Frazier Lamac Historical 697, % 1,522,000 Open Pit George-Ver Historical 1,031, % 1,493,000 Open Pit Bull Rush Historical 1,737, % 2,307,000 Open Pit Andria Historical 750, % 950,000 Open Pit Sunset, Amazon, Badlands Historical 1,843, % 2,395,000 Open Pit Jeep Historical 297, % 463,000 Open Pit 26

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28 CAMECO PROPERTY STRATHMORE PROPERTY Cameco Drill Rigs Operating Near Strathmore s Beaver Rim Property, Gas Hills, September, TSX:STM

29 2011/2012 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

30 Production Plans Roca Honda, NM Underground Mine Mine Mill Gas Hills, WY Permitting Construction Production Mine Open Pit Mill SUBJECT TO PERMITTING AND URANIUM MARKET 30

31 Au-Cu Exploration & Development Copper King, WYOMING 31

32 Saratoga Gold Acquisition Acquired Saratoga Gold Copper King Au-Cu project located in Wyoming near the Company s base of operations (May 2012) Copper King NI Measured, Indicated & Inferred Resource Au-equivalent Cutoff: oz/ton/0.51g/tonne Classification Tons Au Grade Au Grade Total Oz Cu Grade Total Cu lbs Measured Indicated Total M+I 15,130,000 44,620,000 59,750, oz/t oz/t oz/t 0.62 g/t 0.50 g/t 0.54 g/t 272, , , % 0.183% 0.187% 60,120, ,880, ,000,000 Inferred 15,620, oz/t 0.38 g/t 174, % 62,530,000 32

33 Positive PEA Results Received Base Case NPV US $159.5 MM (5% Discount), including 5% State Royalty using US $1,100 / oz gold and US $3.00/lb Copper 31.2% Pre-Tax Internal Rate of Return Base Capital Cost US $104 million year Payback 18 Year Mine Life by open-pit method & 10,000 ton/day average processing rate; Average Recoveries 72% Gold and 79% Copper Ave. Annual Production 38,655 oz Au & million lbs Cu Recoverable resource totals 695,800 oz Au & million lbs Cu 33

34 COPPER KING PROJECT COPPER KING Au-Cu PROJECT Mineralized trend Orebody photo 200 9/13/2012 N Feet 34

35 COPPER KING PROJECT Next Photo Orebody 9/13/ Gold and Copper Mineralization on outcrop. Feet 35

36 COPPER KING PROJECT Orebody 9/13/ Feet 36

37 Copper King Project Recommendations Two Phase US $2.55 MM program over three years recommended Phase I includes permitting, environmental studies, and further exploration & expansion drilling Upon successful completion, Phase II initiates formal permitting & development process Budget and Program Plans under internal review. 37

38 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 2012 production targeted Juniper Ridge WY phased sale to Crosshair Energy Q4 2010; Crosshair spent $1.9 MM in 2011; Initial NI compliant resource estimate completed Jan 2012; Strathmore holds 2% gross revenue royalty Eight additional projects available for sale or joint venture 38

39 Strathmore Uranium Projects Currently For Sale or Joint Venture Significant exploration and development potential Property Summary reports available from NM: Marquez: (3.6 MM 0.126% = 9.1 million lbs M&I*) - 80 % unexplored NM: Church Rock: (6.2 MM tons@ 0.10% = 11.8 million lbs M&I*) (ISR) NM: Nose Rock: (.9 MM 0.14% = 2.6 million lbs M&I*) & Historical Resource NM: Dalton Pass: (1.6 MM tons@ 0.10% = 3 million lbs M&I*) WY: Juniper Ridge: (5.2 MM tons@ SOLD 0.067% = 7 million lbs Historical (Not compliant) WY: Pine Tree-Reno SOLD 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: (.6 MM 0.07% = 1 million lbs M&I*) & Exploration Potential (ISR) WY: Shirley Basin: Historical Resource & Exploration Potential WY: Oshoto State Leases: Exploration Potential *See /s/resourcetable.asp for detailed property resource summaries, including total Measured, total Indicated, & total Measured + Indicated resources. SOLD 39

40 Plans for 2012 Complete US $8 MM Gas Hills drilling and permitting program Submit Mine Permit Application for Gas Hills Complete Roca Honda Preliminary Economic Assessment (PEA) Complete Roca Honda Feasibility Study; Complete Environmental Impact Statement (EIS); Mine Permit decision expected in 2013 Submit Peña Ranch NRC Mill license application Continue to Monetize non-core Properties Initiate project development plans at Copper King Au-Cu Property 40

41 Why Invest in Strathmore? 1. Strathmore Knows Mining Management team has extensive mining experience in both yellow metals Advancing two core uranium projects; significant local gold project acquired 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 11.8% stake 3. Large Uranium Asset Base-Non-Core Being Monetized Leverage to higher uranium prices Little or no valuation given to gold project 41

42 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 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 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 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 longtime Fellow of the Canadian Securities Institute. 42

43 Notes: TSX.: STM

44 CONTACT INFO: Phone: # Dolphin Ave. Kelowna, BC V1Y 9S4 Canada 44