Strathmore Reports Favourable Preliminary Economic Assessment

Strathmore Reports Favourable Preliminary Economic Assessment &
Updated Resource Estimate for Roca Honda Uranium Project 
KELOWNA, BRITISH COLUMBIA -- (Marketwire) -- 10/24/12 -- STRATHMORE
MINERALS CORP. (TSX:STM)(OTCQX:STHJF) ("Strathmore" or the "Company")
is pleased to report favourable results from a National Instrument
43-101 technical report entitled "Technical Report on the Roca Honda
Project, McKinley County, New Mexico", dated August 6, 2012, and
prepared by Roscoe Postle Associates Inc. ("RPA"). The technical
report includes an updated NI 43-101 compliant mineral resource
estimate and the results of a Preliminary Economic Assessment ("PEA")
for the uranium resources outlined to date at the Roca Honda Project
in New Mexico. The Roca Honda Property is 60% owned by Strathmore and
40% owned by Sumitomo Corporation of Japan under their jointly held
subsidiary, Roca Honda Resources LLC (RHR). 
PEA Summary 


 
--  Base case estimated pre-tax Net Present Value (NPV) (8% discount), of US
    $220 million and pre-tax internal rate (IRR) of return of 19.2%, using
    US $75/lb uranium based on independent third party 2015 price forecasts.
    Using a uranium price of US $65/lb, the estimated pre-tax NPV (8%
    discount) is US $112 million and the IRR is 14%. The current long-term
    uranium contract price is US $60/lb. 
--  A mine life of nine years by conventional underground methods with a
    variable processing rate of 1,030 stoping tons per day during the time
    that mining occurs in Property Sections 9 and 16. Production increases
    to 1,200 stoping tons per day when Property Sections 9, 16, and 10 are
    all mined simultaneously, and then production drops to 1,020 stoping
    tons per day when mining from Property Section 10, only. 
--  Average annual production over the life of the mine is 2.6 million lbs
    of uranium; Estimated initial pre-production cost of approximately US
    $344 million, including contingency of $US 61 million. Total capital
    costs over the life of the mine are estimated to be US $444.5 million
    with contingency. Operating costs are estimated at US$24/lb. Total
    Capital, operating and royalty costs per pound are approximately US
    $44/lb with contingency and US $41 without contingency. Payback is
 
   approximately four years after production begins. A Sensitivity Analysis
    notes the project is most, and equally sensitive to, head grade, the
    uranium price and recovery. It is least, and equally sensitive to
    operating and capital costs. 

 
Economic Evaluation 
A summary of pre-tax financial evaluation using the base case uranium
price of US $75/lb is presented below. The current spot and long-term
uranium prices are considerably below the base case US $75/lb price
used in the PEA, which is derived from independent third-party
forecasts for 2015. The Roca Honda Project includes construction of a
milling facility at RHR's Pena Ranch property with excess processing
capacity which could be used as a regional toll mill. However, the
base case assumes no toll milling, and uses a market price of US
$75/lb for all years. 
Table 1: Summary of Roca Honda Pre-Tax PEA Results 


 
Description                                 Value                           
----------------------------------------------------------------------------
Base Case                                                                   
Forecasted Uranium Price                    US $75/lb                       
Pre-tax Cash Flow With Contingency          US $713 million                 
Net Present Value (Discount Rate of 8%)     US $220 million                 
Estimated Payback                           Approximately 4 years           
Life of Mine (estimated)                    Nine (9) years                  
                                                                            
Mine Production - Processing                                                
Mining Method                               Underground Conventional        
                                            (Mechanized)                    
Total Life of Mine Capital Cost with        US $ 445 million                
 Contingency                                                                
Mill Processing Type                        Acid Leach/Solvent              
                                            Extraction/Precipitation        
Estimated Processing Recovery               94%                             
Mill Processing Rate                        Variable: averaging 1,085 tons  
                                            per day                         
Estimated Operating Cost                    US $24/lb                       
Total Capital, Operating, & Royalty Costs                                   
 Per Lb with Contingency:                                                   
  Without Toll Milling Option               US$ 42/lb                       
  With Toll Milling Option                  US$ 44/lb                       
Approximate Annual Uranium (U3O8)           Est. 2.6 million lb/yr          
 Production:                                                                

 
Strathmore cautions that the 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. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. There is no
certainty that the PEA will be realized.  
The economic evaluation of the Roca Honda uranium resource was
prepared under the supervision of Stuart E. Collins of Roscoe Postle
(USA) Ltd., Lakewood, Colorado. Mr. Collins is a Registered
Professional Mining Engineer in the state of Colorado, and is a
registered member of the Society for Mining and Metallurgy, and
Exploration, and an independent and Qualified Person as defined in NI
43-101.  
Summary of Roca Honda Mineral Resources: 
The Roca Honda property represents Strathmore's largest and highest
grade uranium resource. In addition, the updated Roca Honda resource
estimate prepared by RPA confirms Roca Honda as one of the highest
grade uranium deposits in the United States. 
Table 2: Summary of Roca Honda Mineral Resources as at August 9,
2011: 


 
Measured and Indicated Resources:                                           
                                                 Grade %                  Lb
Classification                  Tons                U3O8                U3O8
----------------------------------------------------------------------------
Measured                     284,000               0.395           2,247,000
Indicated                  1,793,000               0.405          14,536,000
----------------------------------------------------------------------------
Total M+I                  2,077,000               0.404          16,783,000
                                                                            
Inferred Resource:                                                          
                                                 Grade %                  Lb
Classification                  Tons                U3O8                U3O8
----------------------------------------------------------------------------
Inferred                   1,448,000               0.411          11,894,000

 
Notes: 


 
1.  CIM definitions were followed for Mineral Resources. 
2.  The Qualified Person for this Mineral Resource estimate
 is Patti Nakai-
    Lajoie, P.Geo. 
3.  Mineral Resources are estimated using a cut-off grade of 0.13% U3O8. 
4.  A minimum mining thickness of six feet was used. 
5.  Numbers may not add due to rounding. 

 
The modeling and estimation of the uranium resources were prepared
under the supervision of Patti Nakai-Lajoie, P.Geo. and Principal
Geologist, RPA. Ms. Nakai-Lajoie is a Professional Geoscientist in
the Province of Ontario and an independent and Qualified Person as
defined in NI 43-101. Ms. Nakai-Lajoie visited the Roca Honda
Property on May 10-12, 2011 and is of the opinion that the data
verification procedures support the geologic interpretations and
confirm the quality of the database. It should be noted that mineral
resources, which are not mineral reserves, do not have demonstrated
economic viability. 
RPA reviewed historic plans and sections, geological reports,
historic and recent drill hole logs, digital drill hole database,
historic drill hole summary radiometric logs and survey record,
property boundary surveys, and previous Roca Honda resource
estimates. As part of the data verification process, RPA
independently measured counts per second (cps) of select drill core
samples using a hand held scintillometer, and checked some drill hole
collars and section boundaries on the property using a hand held GPS.
The drill hole locations and the presence of uranium were confirmed,
and few discrepancies were identified, during the verification
process or the independent field data verification. Any discrepancies
were either deleted or corrected. 
RPA used Maptek's Vulcan(R) 3D modeling software to estimate the Roca
Honda resource. Stationary domains were generated in ARANZ Geo
Limited's Leapfrog(R) version 2.1.1.209 using geologic and drill hole
data to create hard boundaries, which helped control the estimation
process. Uranium (U3O8%) grades were estimated using the inverse
distance weighting method for 10 ft by 10 ft by 6 ft blocks created
inside domains. Validation was done both visually and by comparison
with nearest neighbor estimation method. No significant discrepancies
were identified with block grade validation. Distances to samples and
number of samples used in estimation were used along with geologic
and grade continuity to determine measured, indicated, and inferred
resources.  
RPA has recommended the project proceed to the pre-feasibility stage
with continuation of the New Mexico State and Federal permitting
process. Overall, a two-phase work program and budget for both the
Roca Honda property and the proposed Pena Ranch mill has been
outlined. Phase 1, budgeted at US $1.9 million recommended the
continuation of additional metallurgical test work, baseline studies,
and monitor well drilling. Phase 2, which is contingent on
successfully completing Phase 1, is budgeted at US $3.1 million.
Phase 2 recommends additional drilling to increase the quantity and
quality of the Mineral Resources, in addition to advanced mill design
and permitting work. 
Roca Honda Resources LLC submitted a mine permit application for the
Roca Honda Project in 2009. A draft Environment Impact Statement
(EIS) prepared under the direction of the United States Forest
Service is scheduled to be completed in December 2012, with a final
EIS due in early 2013. The mine permit decision is expected in 2013.
A Nuclear Regulatory Commission license application for construction
and operation of a conventional uranium mill is currently in draft
form, and it is expected to be submitted in early 2013. 
The technical information in this news release has been reviewed by
David Miller, Chief Executive Officer for Strathmore Minerals Corp.,
and a Qualified Person under National Instrument 43-101. The
"Technical Report on the Roca Honda Project, McKinley County, New
Mexico, USA" was authored by Patti Nakai-Lajoie, P.Geo., Robert
Michaud, P.Eng., Stuart E. Collins, P.E., all with RPA, and Roderick
C. Smith, P.Eng. of Lyntek, All authors are independent and Qualified
Persons as defined by NI 43-101, and all have reviewed and approved
the technical information in this press release. 
The Roca Honda Technical Report prepared by RPA can be viewed in its
entirety on the Company's website, www.strathmoreminerals.com or
SEDAR, www.sedar.com. 
STRATHMORE MINERALS CORP. is a Canadian-based resource company
specializing in the strategic acquisition, exploration and
development of mineral properties in the United States. Headquartered
in Vancouver, British Columbia with a branch administrative office in
Kelowna, the Company also has U.S. based Development Offices in
Riverton, Wyoming and Santa Fe, New Mexico. STRATHMORE MINERALS CORP.
Common Shares are listed on the TSX under the symbol "STM" and trade
on the OTCQX International electronic trading system in the United
States under the symbol "STHJF". 
This press release contains "forward-looking information" that is
based on Strathmore Minerals Corp.'s current expectations, estimates,
forecasts and projections. This forward-looking information includes,
among other things, statements with respect to Strathmore's NI 43-101
Roca Honda Technical report entitled: "Technical Report on the Roca
Honda Project, McKinley County, New Mexico, USA", dated September 21,
2012; exploration, development, and permitting plans, advancement of
the Roca Honda project, resource estimates, anticipated internal
rates of return,cash flows, operating and capital costs, payback
periods, net present values, development activities, mine life,
outlook and business strategy. The words "may", "would", "could",
"should", "will", "likely", "expect," "anticipate," "intend",
"estimate", "plan", "forecast", "project" and "believe" or other
similar words and phrases are intended to identify forward-looking
information. 
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 calculation of 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
projects; and labour relations matters.  
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on
such forward-looking information. Such forward-looking statements are
made as of the date of this press release and the Company assumes no
obligation to update or revise them to reflect new events or
circumstances, except as required by law. 
ON BEHALF OF THE BOARD: 
David Miller, CEO 
Contacts:
Strathmore Minerals Corp.
Craig Christy
Investor Relations
1-800-647-3303
info@strathmoreminerals.com
www.strathmoreminerals.com