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Bannerman Resources gets the go-ahead for Namibia uranium project

11 April 2012

Bannerman Resources said that its definitive feasibility study (DFS) has confirmed the commercial viability for its 80% owned Etango Uranium Project in Namibia.

The company's DFS indicated proved and probable ore reserves totalling 279.6 million tonnes, and calls for the expansion of the plant size from 15 to 20 million tonnes per year, thereby increasing average annual production by 22%.

It also recommends improving mining and material movement efficiencies to better position mine waste dumps and metallurgical test work supporting a higher uranium recovery rate.

Cash operating costs are expected to be $41/lb U3O8 in the first five years and an average of $46/lb U3O8 over the 16-year life of mine, with programmes to seek reductions.

The project is expected to generate operating cash flow of $2.7bn before capital and tax, and free cash flow of $923m after capital and tax.

Bannerman Resources has signed an agreement with Namibian state-owned mining company, Epangelo Mining Company for participation in the project.

A binding term sheet has been signed for Namibian state-owned Epangelo Mining Company to acquire an initial 5% interest and, upon a mine development decision, a further of 5% interest in Bannerman's Namibian subsidiary which owns 100% of the Etango Project.