Black Range Minerals Limited (ASX:BLR) Obtain Right To Acquire 100% Of The Hansen Uranium Deposit In USA

Sydney, Feb 22, 2011 AEST (ABN Newswire) - Black Range Minerals Limited (ASX:BLR) is very pleased to advise that it has executed a definitive agreement with STB Minerals LLC ("STB") that provides Black Range an exclusive option to acquire the remaining 51% interest in the ~30 million pound Hansen Uranium Deposit in Colorado, USA.

The Company already holds an exclusive option to acquire NZ Minerals LLC's 49% interest in the Hansen Deposit. Hence the Company now holds exclusive rights to acquire 100% of the Hansen Uranium Deposit.

The Hansen Uranium Deposit is located immediately adjacent to the Company's 100% owned +60 million pound Taylor Ranch Uranium Project. The combined Taylor Ranch/Hansen Uranium Project is one of the largest uranium projects within the USA.

The Hansen Uranium Deposit was discovered in 1977. Approximately 1,000 holes have been drilled previously to define the deposit. Mineralisation is hosted by a flat-lying sandstone sequence, with the high grade portion of the deposit being up to 45 metres in thickness. Three feasibility studies were completed and the deposit was fully permitted for mining in the early 1980s; however, mining never eventuated because the global uranium price collapsed shortly after permits were awarded.

The Company intends acquiring additional metallurgical, geotechnical and hydrological data at the Hansen Deposit in order to update previous feasibility studies. Permits have been obtained to acquire this additional data. Field work is expected to commence during the second quarter of 2011, as soon as a suitable diamond-core drilling rig becomes available.

Terms of the Agreement with STB

Key components of the definitive agreement with STB are:

- Black Range has an exclusive, six-year option to acquire STB's 51% mineral interest in the Hansen Uranium Deposit and immediate surrounds.

- Once conditions precedent are satisfied, which is expected to occur within the next three months, Black Range shall pay STB US$1.0 million and issue STB US$2.5 million worth of shares in Black Range (based on Black Range's 5-day VWAP for the period immediately preceding the issue of the shares). These shares will be issued in two tranches, 180 days apart.

- Black Range shall undertake feasibility studies into the development of a commercial scale mining operation, evaluating all potential mining methods.

- To exercise its option to acquire STB's mineral interest, Black Range shall pay STB a further US$2.0 million and issue STB US$7.5 million worth of shares in Black Range. These shares would be issued in two tranches, 180 days apart.

- If Black Range has not exercised its option to acquire STB's mineral interest within 3 years of satisfaction of the conditions precedent, it shall have the right to extend its exclusive option for a further three years by paying STB $1.0 million and issuing STB a further $1.0 million worth of shares in Black Range. These shares would be issued in two tranches, 180 days apart.

- If Black Range exercises its option to acquire STB's mineral interest, Black Range shall also concurrently purchase the surface rights covering certain parcels of land that will be directly affected by a mining operation, under terms and conditions already agreed between STB and the surface owners.

- If Black Range exercises its option to acquire STB's mineral interest, STB will be entitled to a 1.5% royalty on production from its 51% interest in the Hansen Uranium Deposit.

The finalisation of agreements to acquire 100% of the advanced Hansen Uranium Deposit puts the Company in a very good position to develop a mining operation at the Taylor Ranch/Hansen Uranium Project. The Company anticipates that considerable economic benefits will be realised by jointly developing the advanced circa 30 million pound Hansen Uranium Deposit in conjunction with the adjacent 60 million pound resource base at the Taylor Ranch Project.

For the complete Black Range Minerals announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/66113-ASX-BLR-529713.pdf

Contact

Mike Haynes Managing Director E-mail: info@blackrangeminerals.com Tel: +61-8-9481-4920 http://www.blackrangeminerals.com