Laramide Resources seizes new uranium exploration opportunity in Kazakhstan’s Chu-Sarysu Basin

Laramide Resources Ltd. has embarked on an ambitious new exploration project in Kazakhstan’s Chu-Sarysu Basin, one of the world’s most prolific uranium regions. Through a three-year option agreement with Aral Resources Ltd., a Kazakh company registered with the Astana International Financial Center, Laramide Resources plans to explore a nearly 6,000-square-kilometer area in the Chu-Sarysu Basin. The agreement grants Laramide the option to acquire all outstanding shares of Aral Resources, thereby gaining full ownership of the Chu-Sarysu Project.

This move places Laramide at the center of a region known for its substantial uranium deposits. Kazakhstan, which produced over 43% of global uranium output in 2023, has several significant uranium basins, including Chu-Sarysu and Syr Darya, that contribute more than 75% of the nation’s uranium production. This area hosts major deposits and operational in-situ recovery (ISR) mines such as Inkai, Budenovskoye, and Tortkuduk/Muyunkum, which are jointly operated by Kazatomprom, Cameco, Uranium One, and Orano.

Strategic Significance of the Agreement

The option agreement provides Laramide Resources with a significant strategic advantage. Under its terms, Laramide will be the exclusive operator throughout the option period, overseeing all operational and exploration expenses. This agreement, still subject to Toronto Stock Exchange (TSX) approval, includes an initial cash and share payment of USD 450,000 upon finalizing all licenses. Additional payments of USD 150,000 will be made annually during the option period. Laramide has the option to exercise the acquisition by paying USD 14 million in cash and shares, allowing the company to secure a significant foothold in a highly prospective region.

The exploration area includes 17 granted mineral licenses and five additional licenses pending approval, each with an initial term of up to six years and a possibility for a one-time renewal for an additional five years. The option period may also be extended by one year with a payment of USD 400,000. The agreement offers flexibility, allowing Laramide to explore alternative mechanisms for development, such as a potential spin-off transaction.

Marc Henderson, President and CEO of Laramide Resources, expressed enthusiasm for the project, highlighting its potential amid the current global dynamics of uranium supply and demand. “The opportunity to explore in one of the world’s most prolific and prospective uranium basins appears to us to be a very compelling and overlooked opportunity, particularly within an industry dynamic where the uranium supply deficit is now consensus thinking,” Henderson stated. Kazakhstan’s proactive stance on foreign investment in its mining sector further strengthens the project’s potential.

Kazakhstan’s Mining Reforms and Potential for New Discoveries

Kazakhstan has made significant strides to attract foreign investment by revamping its mining code in 2018 to align with Western standards. These reforms, which included revisions to subsoil and subsoil use licensing, have positioned the country as a favorable destination for mining companies. This regulatory environment, coupled with the untapped exploration potential of the Chu-Sarysu Basin, creates an ideal scenario for Laramide Resources to leverage its expertise in uranium exploration and development.

The Chu-Sarysu Project presents a unique greenfield exploration opportunity in a region that, despite its proximity to world-class ore bodies, has seen limited exploration since the post-Soviet era. The project area features a number of mapped paleo-channel roll-fronts associated with uranium deposits that are amenable to in-situ recovery (ISR) mining. Laramide’s exploration strategy will focus on airborne and ground geophysical surveys to validate these formations and identify new high-priority targets for drilling.

Broader Implications for Laramide’s Uranium Portfolio

This latest venture in Kazakhstan complements Laramide’s existing portfolio of high-quality uranium assets in Australia and the United States. The company’s other projects include the Westmoreland project in Queensland, Australia, one of the largest uranium development assets held by a junior mining company, and the Crownpoint-Churchrock Uranium Project in New Mexico, USA, which is licensed by the Nuclear Regulatory Commission (NRC). Both projects are considered late-stage, low-technical-risk assets with significant production potential.

The strategic addition of the Chu-Sarysu Project aligns with Laramide’s focus on expanding its portfolio in Tier-1 uranium jurisdictions. The move reflects the company’s long-term vision to capitalize on the global shift toward nuclear energy as a clean energy source, especially in light of anticipated supply deficits in the uranium market.

Laramide Resources’ move into Kazakhstan’s Chu-Sarysu Basin marks a bold step to tap into one of the world’s most promising uranium regions. With Kazakhstan’s supportive mining environment and Laramide’s strategic focus on high-quality uranium assets, the Chu-Sarysu Project represents a significant opportunity for the company to enhance its standing in the global uranium market.

By pursuing this greenfield exploration, Laramide aims to position itself as a key player in meeting the growing global demand for uranium, essential for nuclear energy’s expansion as a clean and reliable energy source.