Published on Tuesday August 02 2011
Black Range Minerals Limited (
ASX:BLR) is very pleased to advise that all conditions precedent pertaining to the definitive agreement, executed with STB Minerals LLC ("STB") earlier this year, to acquire its 51% interest in the Hansen Uranium Deposit in Colorado, USA, have been satisfied.This is an important milestone for the Company as the owners of the surface rights over the Hansen Uranium Deposit have now explicitly approved mining of the deposit. Furthermore the ownership of the deposit (51% STB - 49% NZ Minerals LLC ("NZ")) has been categorically and indisputably resolved.
The Hansen Uranium Deposit itself hosts JORC Code compliant indicated and inferred resources totalling:
28.4 Mt at 0.064% U3O8 for 39.4 million pounds of U3O8.
This deposit is located immediately adjacent to the
Company's Taylor Ranch Uranium Project. Combined these two projects host JORC Code compliant indicated and inferred resources of:68.9 Mt at 0.060% U3O8 for 90.9 million pounds of U3O8.
The Company now has the exclusive rights to acquire 100% of the minerals rights on approximately 13,000 acres at these Projects.
Payment of additional consideration to STB and NZ
With all conditions precedent satisfied, in accordance with its definitive agreements with STB and NZ, the Company has made payments comprising US$1 million cash and US$1.25 million worth of shares in Black Range (30,585,140 shares) to STB and a further US$1 million cash and US$1 million worth of shares (27,996,857 shares) to NZ.
Transfer of 24.5% interest in the Hansen Uranium Project to Black Range Minerals Limited
Having made the above mentioned payments to NZ, NZ will
now irrevocably transfer 50% of its mineral rights (for a net 24.5% interest in the Hansen Uranium Project), to Black Range. The Company has the exclusive right to acquire NZ's remaining 24.5% interest in the Hansen Project by bringing it to production and making an additional payment of US$2 million in cash and US$2 million in shares.The Company also has the exclusive right to acquire STB's 51% interest in the Hansen Project at any time in the next six years by completing certain work programs and by making additional staged payments. These comprise:
(i) US$1.25 million of shares in 6 months;
(ii) US$2 million in cash and US$7.5 million in shares at any time in the next six years. If this payment is not made within the next 3 years then in order to extend its option to acquire STB's 51% interest for a further 3 years the Company is required to pay an additional US$1 million in cash and US$1 million in shares.
Update of Previous Feasibility Study
A 10-12 diamond core-hole drilling program is progressing well at the Hansen Project. The purpose of this program is to
acquire additional technical data so that the previous feasibility studies, which were undertaken on the Deposit during the early 1980s, can be updated.A decision on the best development path for the project will then be made.
Background - Hansen/Taylor Ranch Uranium Project
The Hansen Uranium Deposit was discovered in 1977 and fully permitted for mining in 1981. The global uranium market subsequently collapsed and mining never eventuated.
More than 1,000 holes were drilled and three feasibility studies completed to evaluate the Hansen Deposit previously.
The Company now holds a direct 24.5% equity interest in the Hansen Uranium Project that covers approximately 3,500 acres and includes the Hansen and Picnic Tree Uranium Deposits. It also holds the exclusive right to secure the remaining 75.5% interest in this Project area, together with a 100% interest in a further 9,500 acres at the Taylor Ranch Uranium Project, which is located immediately adjacent to, and north of, the Hansen Project.
When applying a 0.025% cut-off grade, the JORC Code compliant indicated and inferred resource for the combined Hansen/Taylor Ranch Uranium Project comprises:
68.9 Mt at 0.060% U3O8 for 90.9 million pounds of U3O8
The high-grade and robust nature of the mineralisation at the Hansen/Taylor Ranch Project is demonstrated when applying
a 0.075% cut-off grade to the resource calculation. The JORC Code compliant indicated and inferred resource for the combined Hansen/Taylor Ranch Uranium Project then comprises:16.6 Mt at 0.120% U3O8 for 43.8 million pounds of U3O8
The combined Hansen/Taylor Ranch Uranium Project is one of the largest uranium projects within the USA - which as a nation is the largest consumer of uranium in the world. With domestic mines within the USA producing less than 10% of the uranium consumed in the country on an annual basis, the development of such a large and strategic asset should be regarded highly.
Black Range continues to advance feasibility and environmental studies at the Hansen/Taylor Ranch Uranium Project as quickly as possible.
For the complete Black Range announcement including tables and figures, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-BLR-551920.pdf
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