Strathmore investor presentation june 2012
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  • 1. Strathmore Minerals Corp Corporate Update Dahlman Rose Uranium Forum New York June 5, 2012 1www.strathmoreminerals.com TSX: STM
  • 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 Strathmores 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. 2www.strathmoreminerals.com TSX: STM
  • 3. SHARE STRUCTURE SHARE PROFILE Stock Symbol: STM (TSX) STHJF (OTCQX) Working Capital Estimate: C $18.5 MM 123,274,621 shares outstanding 134,494,954 shares fully diluted Korea Electric Power Corp (KEPCO) owns ~11.8% 3www.strathmoreminerals.com TSX: STM
  • 4. Uranium Market Current Spot Price (May 28) US $52.00/lb Long-Term Price (May) US $61.50/lb Source: The Ux Consulting Company LLC : www.uxc.com “According to Ux Consulting, there is an increasing sense among utilities that the spot uranium price has likely bottomed...” Greg Barnes, TD Securities (April, 2012) Uranium price forecast: 2012 - US $58, 2013 - US $70 , 2014 - 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 4www.strathmoreminerals.com TSX: STM
  • 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 5www.strathmoreminerals.com TSX: STM
  • 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 6www.strathmoreminerals.com TSX: STM
  • 7. 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 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 Au-Cu NI 43-101 under preparation • Long-life mineral assets in politically stable region 7www.strathmoreminerals.com TSX: STM
  • 8. Recent Developments: 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 8www.strathmoreminerals.com TSX: STM
  • 9. Recent Developments: Saratoga Gold Acquisition • Acquired Saratoga Gold Copper King Au-Cu project located in Wyoming near the Company’s base of operations Copper King Historical Resource Estimate (Not NI 43-101 Compliant) Copper King Tonnage Au Grade Au Grade Total Oz Cu Grade Total Cu lbs Resource Cutoff 0.010 oz/ton 46,291,000 0.019 oz/t 0.53 g/t 866,000 0.17% 153,008,000 • Preparation of NI 43-101 technical report & resource estimate underway 9www.strathmoreminerals.com TSX: STM
  • 10. Why the United States ? 60 United States Uranium Production and Consumption 1980/2010 50 40 30 20 10 Production Consumption Production ConsumptionMillions lbs U3O8 1980 2010 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 10www.strathmoreminerals.com TSX: STM
  • 11. Where Did it Come From? US Production: Where was it Mined? Tonnes U Pounds U3O8 400,000,000 New Mexico 150,000 300,000,000 Wyoming 100,000 200,000,000 Utah Colorado 50,000 100,000,000 Texas Arizona 0 Nebraska 11www.strathmoreminerals.com TSX: STM
  • 12. Largest Uranium Reserves In Wyoming & New Mexico 12www.strathmoreminerals.com TSX: STM
  • 13. Copper Mountain Kaycee Gas Hills Jeep Sky - (Cedar Rim) Shirley Basin Juniper Ridge Nose Rock Church Rock Dalton Pass Roca Honda Ambrosia Lake Leases Marquez 13www.strathmoreminerals.com TSX: STM
  • 14. 45.3 Million M&I NI 43-101 lbs U3O8 26.3 Million Inferred 43-101 lbs U308 Property Resource Grade lbs. U3O8 MethodRoca Honda, NM Measured 1.3 MM @ 0.23% 6.0 million Underground Indicated 2.4 MM @ 0.23% 11.5 million M&I 3.7 MM @ 0.23% 17.5 million Inferred 4.5 MM @ 0.17% 15.8 millionChurch Rock, NM Measured 1.7 MM @ 0.10% 3.2 million ISR / Underground Indicated 4.5 MM @ 0.10% 8.6 million M&I 6.2 MM @ 0.10% 11.8 million Inferred 1.9 MM @ 0.09% 3.5 millionMarquez, NM Measured 1.0 MM @ 0.13% 2.5 million ISR or Underground Indicated 2.6 MM @ 0.13% 6.6 million M&I 3.6 MM @ 0.13% 9.1 million Inferred 2.1 MM @ 0.12% 4.9 millionNose Rock, NM Measured 0.31 MM @ 0.15% 0.9 million Underground Indicated 0.58 MM @ 0.15% 1.6 million M&I 0.88 MM @ 0.15% 2.5 million Inferred 0.16 MM @ 0.14% 0.45 millionDalton Pass, NM Measured 0.45 MM @ 0.09% 0.8 million ISR / Underground Indicated 1.2 MM @ 0.10% 2.2 million M&I 1.6 MM @ 0.10% 3.0 million Inferred 0.90 MM @ 0.08% 1.5 millionSky, WY Indicated 0.66 MM @ 0.07% 0.9 million ISR Inferred 0.05 MM @ 0.05% 0.05 million Measured 0.22 MM @ 0.08% 0.4 millionJeep, WY Indicated 0.08 MM @ 0.06% 0.1 million M&I 0.31 MM @ 0.07% 0.5 million Inferred 0.15 MM @ 0.05% 0.15 million 14www.strathmoreminerals.com TSX: STM
  • 15. Permitting for Production Roca Honda, New Mexico Mine Permit Review Underway 15www.strathmoreminerals.com TSX: STM
  • 16. GRANTS MINERAL BELT New Mexico Largest Uranium District in the U.S. 340 Million pounds produced WY UT CO NM 16www.strathmoreminerals.com TSX: STM
  • 17. 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 17www.strathmoreminerals.com TSX: STM
  • 18. 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 % U308 lbs U308 NI 43-101 Measured 1,305,000 0.23 6,035,000 Kerr McGee NI 43-101 Indicated 2,477,000 0.23 11,477,000 NI 43-101 M + I 3,782,000 0.23 17,512,000 NI 43-101 Inferred 4,546,000 0.17 15,832,000 18www.strathmoreminerals.com TSX: STM
  • 19. Roca Honda Mine Permit Submitted Oct 2009 19www.strathmoreminerals.com TSX: STM
  • 20. 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” Q4 2009 • 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 20www.strathmoreminerals.com TSX: STM
  • 21. Roca Honda Resources LLC Joint Venture (Strathmore 60% / Sumitomo 40%) New Mineralized Zone found in monitor well. Monitor Well Drilling and Installation Chemical Analysis 10’ grading 0.67% U308 6’ grading 0.73% U308 21www.strathmoreminerals.com TSX: STM
  • 22. Permitting for Production GAS HILLS, WYOMING Mine Permit Application Submittal in 2012 22www.strathmoreminerals.com TSX: STM
  • 23. GAS HILLS URANIUM DISTRICT WYOMING WY GAS HILLS NM URANIUM DISTRICT 100 Million pounds producedNO INFRASTRUCTURE ISSUES • Paved Road (45 miles) • Big Electric Power installed • Natural Gas available • Geothermal available 23www.strathmoreminerals.com TSX: STM
  • 24. 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 24www.strathmoreminerals.com TSX: STM
  • 25. 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 25www.strathmoreminerals.com TSX: STM
  • 26. Gas Hills, Wyoming STM Holdings - 35,000 acres Unmined Uranium Roll-Front Deposit Historical estimate 10.8 MM tons @ 0.08% U308 Total - 16.2 million lbs (Not NI 43-101 Compliant) Near surface open pit production 26www.strathmoreminerals.com TSX: STM
  • 27. Gas Hills Properties, Wyoming 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, Historical 1.8 million 0.06% 2.4 million Open Pit Badlands Not NI 43-101 Compliant Total 10.8 0.08% 16.2 million Open Pit 27www.strathmoreminerals.com TSX: STM
  • 28. 28
  • 29. CAMECO PROPERTY STRATHMORE PROPERTY Cameco Drill Rigs Operating Near Strathmore’s Beaver Rim Property, Gas Hills, September, 2011 29www.strathmoreminerals.com TSX:STM
  • 30. Production Plans 2011 2012 2013 2014 2015 2016 2017 2018 Roca Honda, NM Underground Mine Mine Mill Gas Hills, WY Permitting Construction Production Mine Open Pit Mill SUBJECT TO PERMITTING AND URANIUM MARKET 30www.strathmoreminerals.com TSX: STM
  • 31. 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 43-101 compliant resource estimate completed Jan 2012; Strathmore holds 2% gross revenue royalty • Eight additional projects available for sale or joint venture 31www.strathmoreminerals.com TSX: STM
  • 32. Strathmore Uranium Projects Currently For Sale or Joint Venture Significant exploration and development potential Property Summary reports available from davidmiller@wyoming.com• 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*) SOLD• WY: Juniper Ridge: (5.2 MM tons@ 0.067% = 7 million lbs Historical (Not 43-101 compliant) SOLD• 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 SOLD• 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. 32www.strathmoreminerals.com TSX: STM
  • 33. 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 • Prepare NI 43-101 technical report & resource estimate for Copper King Au-Cu project & initiate project development plans 33www.strathmoreminerals.com TSX: STM
  • 34. 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 34www.strathmoreminerals.com TSX: STM
  • 35. •David R. Miller, PG (Wyoming) - CEO, Director, •Steven Khan, MBA, CFA - Chairman, President, Strathmore Minerals Corp. Director, Strathmore Minerals Corp. Davids primary professional focus has been on Steven Khan has spent close to twenty years in all uranium exploration, development, and mining, and aspects of the investment industry, including retail, his career has spanned over 20 years with a chain and later institutional sales, corporate finance, of companies that started with Utah International capital markets, and investment banking. He has and evolved into AREVA, the French Nuclear held several senior management roles including: Power Conglomerate. In addition he has consulted Executive Vice-President, President, Chief extensively for the IAEA (International Atomic Executive Officer, and Chairman of a number of Energy Commission) in Austria and China. David is regional and national full service Canadian a recognized expert in the nuclear and energy field investment brokerage houses that mostly focused and has been seen, heard, and read in the New on venture capital financings. In 2003, he started his York Times, BBC, CNBC, CNN, Business News own consulting firm that focused on business plan Network, Wall Street Journal, Globe and Mail, and development and capital fund raising for a number Barrons. He is also a co-author of "Investing in the of early stage private and public companies. In the Great Uranium Bull Market." A fifth term member of past several years, Mr. Khan has successfully the Wyoming Legislature, serving District 55 -- initiated, completed or partnered several major Riverton, David has served on Minerals, Revenue, corporate development initiatives both domestically Education, Corporations, and Health & Labor and internationally, including government partnered Committees. He was an original appointee to the ventures in China and Korea. Mr. Khan was also an Wyoming Energy Commission and currently serves instrumental part of the team that negotiated on the NCSL High Level Radioactive Waste Strathmores Roca Honda Joint Venture with Committee. David graduated from the University of Sumitomo Corp of Japan in 2007. In January 2008, Missouri with a degree in Geology and is a after serving as Executive Vice-President since Registered Professional Geologist in Wyoming. Mr. 2003, Mr. Khan accepted the position of President Miller is the architect responsible for assembling of Strathmore Minerals Corp. A graduate of the Strathmores uranium property acquisitions in 1997, University of British Columbia with a BSc. (1978) renewing it in 2003, when the uranium price turned and MBA (1983), Mr. Khan also holds a Chartered upward, and subsequently implementing the Financial Analyst designation (CFA), is a member of Companys current development strategy. He was the CFA Institute, and for many years was a long- appointed President in 2004 and CEO in 2008. time Fellow of the Canadian Securities Institute. 35www.strathmoreminerals.com TSX: STM
  • 36. CONTACT INFO: Phone: 1-800-647-3303 Email: info@strathmoreminerals.com www.strathmoreminerals.com #700- 1620 Dickson Ave. Kelowna, BC V1Y 9Y2 Canada 36www.strathmoreminerals.com TSX: STM