The list is very long in order to see BLR into production.
1. A series of permits are required. These permits will take 2-3 years to complete. The UBHM process permit will be tricky as the greenies are not wanting this mining method to happen.
2. BLR gas no money to advance the permitting process.
3. BLR has no money to pay the engineering and geos .
4. BLR does not own 100% of the deposits. So there are other parties that need to be consulted.
5. PEN won't be into production in 2015. BLR is not well past the water well point. The last quarterly sample was just completed. Now the submission should happen except there is no money to pay for the next phase. Where is all the money needed to pay salaries, permit fees, consultants, field work, etc going to come from? Do you really think a state wants to give out permits and approvals to a company that has no money to pay? No money for the mine build?
6. I believe that other uranium companies have looked at BLR and did not like what they saw. They obviously have much better access to the issues than we do. Same with the banks. It would be hard for a bank to lend against 24,5% equity when the bank knows the other equity holder controls at the property ownership cards. And there is nothing else to take as collateral for a bank. The banks clearly see further delays. Debt financing can not happen. Equity dilution will no be allowed. So both the uranium competitors and the banks will not get involved with BLR. This is a huge signal to shareholders that the situation is dire. The last quarterly sets this out clearly.
7. Ablation machine only has scrap value. The process works in the pilot plant, not the 5tph machine. And the banks know 5tph machines are not commercial. There needs to be a machine that can process 5 or 10 times the amount per hour. So no hope of income from ablation for a very long time.
So the only way BLR goes into production is when Glasier buys BLR and fast tracks the permit process. And BLR still has no place to mill the ore if WU walks away. EF will runs its own ore through their mill and there are other mines looking to White Mesa for toll mill agreements. Shootaring isn't going to reopen, contrary to the 1 April release from Anfield. So the only other mill in the area will be Pinon Ridge. And companies like WU or UEC or AZZ or PEN are passing BLR by in terms of near term production.
Cait
BLR Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
