Interest in Laramide Resources Limited was re-kindled yesterday following on from their announcement of a 30,000 Metre Drilling Programme in Australia.

As you already know Laramide controls a huge land package in northern Australia (680,000 hectares), which includes the Westmoreland Project in northwest Queensland. It is this project that will be the focal point of the companies exploration efforts with a 27,500-metre drilling programme scheduled to run through until December 2007. This is the same area where GRD Minproc recently undertook the scoping study. Laramide plans to utilize up to four drilling rigs for this drilling programme. So it is good to hear that they have gone out and purchased two Longyear LF 70 diamond drill rigs in order to supplement the mechanical plant requirements of this ambitious program. One drilling rig is already operational on the North East Westmoreland target with another drilling rig being prepared for action. This is really good news as we are constantly hearing about delays to programmes due to the fact that there are not enough drilling rigs around and everyone and his dog wants one today!

Taking a quick look at the chart we can see that the technical indicators hit the floor and LAM reacted with a nice bounce, we need to see it head north from here. This uranium stock is no longer a million miles from its 200 Day Moving Average which tells us that a lot of the froth has been blown away and to us this now represents a bargain basement entry point if you don’t already have Laramide in your portfolio. On the downside we also need to take into consideration that Queensland may never allow uranium mining in their state. Our bet is that they will sooner or later but in terms of a SWOT Analysis for this project the political implications probably top the list headed Threats!