review

Resource Capital Research

Overview: BLR underwent restructuring and relisted in December 2004. Its new management team is
focused on exploration and acquisitions. It aims to advance its US uranium and copper projects to feasibility
stage in 2008.
Taylor Ranch: (CO) Located 35km from a licensed uranium mill at Canon City, the project was acquired
Nov. ’06 (5,300ac). Additional claims were acquired June ’07 (980ac). Initial inferred JORC resource of
46mlbs U3O8 announced August ’07 (Taylor Ranch 42mlbs, Picnic Tree sub-project 4mlbs). Exploration
targets of 6-8.5mlbs U3O8 at two other sub-projects (North Hansen, High Park). Ongoing extension drilling
(15,000m with four rigs) has returned high-grade results, eg 2.1m @ 0.543% eU3O8 and defined the new
Boyer deposit, with best intercept 5m @ 0.115% eU3O8 including 1.8m @ 0.3% eU3O8. The Taylor Ranch
project lies along strike from the geologically similar Hansen uranium deposit, (5 to 6 miles away, ~30mlbs
grading ~0.08% U3O8) which was fully permitted in the 1970’s. Many Taylor Ranch intercepts grade over
0.1% U3O8 and the project has potential to be mined open cut. Historic data exist for at least 680 holes
(110,000m) and recent drilling confirms mineralisation over >5km of strike. Permitting timeframes are
unclear but Colorado is an NRC Agreement State.
Cyclone Rim and Eagle Uranium: (WY) Located in the Red Desert area of southwest Wyoming. The
projects are shallow, believed amenable to ISR and have exploration upside potential to 10+mlbs U3O8.
BLR’s initial exploration target is 3-5mlbs U3O8 at the Cyclone Rim project and there is a JORC resource of
4.7mlbs U3O8 at the Eagle project. Currently drilling (4,000m); potential pre-feasibility 2009.
Ferris-Haggerty: (WY) An historic underground copper mine (1898 to 1908) mined to a depth of 200m.
The ore body is typically 8 to 10m wide, grading 6% to 8% Cu and is open at depth and along strike. No
historic exploration drilling occurred at depth and additional lodes are under-explored. Currently drilling
(3,000m). Pre-feasibility expected 2H08.
Investment Comment: BLR has cash of A$16m and is undertaking drilling (currently 6 rigs in operation)
and evaluating (prefeasibility/ feasibility studies) 4 projects over the next 2 years. A JORC resource
upgrade to 60mlbs U3O8 is expected at Taylor Ranch 4Q07 and an initial JORC resource is expected at
Cyclone Rim 4Q07 (3-5mlbs U3O8). We believe Taylor Ranch will continue to outperform and given
anticipated advancements at other projects we have a price target of A$0.40/share ($285m

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