The study of Hansen deposit, which is part of the larger Hansen/Taylor Ranch Project, is based on an annual uranium production target of 2 million pounds per annum with an estimated total recovery of 14 million pounds per annum.

Prepared by TREC, the study found UBHM combined with ablation as the most cost effective alternative and can be applied to all the resources within the Taylor/Hansen Project.

BLR managing director Tony Simpson said, "Subsequent to the completion of the scoping study, we have also determined that because of capital cost reductions and further reduced environmental impact the best option for processing the ore is to transport off site a high grade, high value concentrate using an off-site mill," added Tony.

Operating costs are estimated at $30 per pound uranium and CAPEX for Hansen would be under $80m, without the need to build a mill.

BLR has entered into a consulting agreement with Kinley Exploration for varied scope of services to assist in mine operations planning for Hansen including underground borehole mining.

The company is also exploring options for off-site processing of the ablated concentrate where off site milling will be incorporated in the economic assessment, which is currently being prepared by TREC.

TREC has been further engaged to commence work on a preliminary economic assessment to incorporate mining Hansen using UBHM and is expected to be completed in the third quarter 2012, including an update of Hansen resources.