blr front runner in the race for u production, page-2

BLR has announced a significant resource upgrade at its Taylor Ranch uranium project in
Colorado. The new resource estimate at a 0.025% U3O8 cut off is 36.9 million tonnes
averaging 0.059% U3O8 and containing 48.1 million pounds of U3O8. This compares with
the previous resource estimate of 21.7 million tonnes averaging 0.054% U3O8 and
containing 26.0 million pounds of U3O8. The increase in tonnage and grade is largely
attributed to the discovery of the Boyer deposit towards the south of the project area. At
the 0.025% U3O8 cut off, the new resource is approximately half the size of Paladin
Energy’s Langer Heinrich deposit and at a similar grade. The deposit remains open and
the company intends to continue its resource evaluation drilling program for the next nine
to twelve months.
A scoping study on the development of the deposit is in progress. The study is considering
an initial operation consisting of underground mining of the higher grade area at the rate of
300,000 to 500,000 tonnes of ore at a grade of 0.12% to 0.15% U3O8 per year. It is
envisaged that this ore will be treated through existing facilities, most likely Copper
Corporation’s mill at Canon City located 30 km to the south east. Annual production would
be in the order of 1.0 to 1.25 million pounds of U3O8. Subsequently operations would be
expanded with a mining rate of one million tonnes of ore per year. This would include open
pit mining of near surface lenses of ore. At a predicted ore grade of 0.08% U3O8 annual
production would increase to 1.5 to 1.75 million pounds U3O8. It is envisaged that at this
stage treatment would be performed at the company’s own processing facility, either heap
leaching or conventional milling. BLR aims to complete the scoping study in the first
quarter of 2008 and then commence a full feasibility study. Mine permitting has
commenced as has mine planning and design as well as geotechnical and hydrological
studies. In addition to the resource definition drilling, diamond core drilling is underway to
acquire samples for metallurgical testwork.
Elsewhere, under an alliance formed with Uranerz Energy Corp in June 2006, BLR is
responsible for managing and conducting exploration programs on advanced uranium
projects identified by the partners. Once sufficient resources have been delineated,
Uranerz will be primarily responsible for bringing those projects into production.
Subsequent to the alliance, the partners have formed a joint venture to explore and
develop the Cyclone Rim and Eagle projects that are located in the Red Desert area of
southwest Wyoming. An initial resource estimate of 4.7 million pounds of U3O8 at an
average grade of 0.023% U3O8 has been made for the Eagle project that has considerable
exploration upside and a resource estimate is in progress for the Cyclone Rim project.
BLR has also acquired an option to earn up to a 90% interest in the high grade Ferris-
Haggerty copper deposit that is located in southern Wyoming. The deposit was developed
to a depth of approximately 200 metres. The main orebody averages 8 to 10 metres in
width, but is up to 20 metres wide in places. The orebody grades 6% to 8% copper and 3
g/t to 4 g/t gold. Mining operations ceased in 1908, when fire destroyed the mine’s
processing facilities and a drastic decline in copper prices precluded the viability of
rebuilding the facilities. BLR may earn a 51% interest in the project through the payment of
US$1 million and by completing a feasibility study by November 2010. The company would
then have the right to earn a further 39% interest by recommencing production. The
company drilled three diamond core holes at the project in the September 2007 quarter
and is awaiting assays.
Impact
BLR is in the right place at the right time with its Taylor Ranch Uranium project. Colorado
has an established mining culture and facilities on hand to assist the company in its
transition from explorer to producer.
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Sector Metals & Mining
Investment Fundamentals
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