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Bannerman Resources Limited (TSX:BAN - News)(ASX:BMN - News)(NSX: BMN)
("Bannerman" or the "Company") is pleased to announce
highlights from the company's update announcement regarding the feasibility
study on its Etango Uranium Project in Namibia,
southwestern Africa. The complete update is available on the company website
at www.bannermanresources.com
and on SEDAR (www.sedar.com).
Highlights
-- Etango is one of the world's largest undeveloped uranium deposits
comprising Measured and Indicated resources of 149Mlbs U3O8 and Inferred
resources of 64Mlbs U3O8, and is highly leveraged to rising uranium
prices which have increased recently to over US$60/lb U3O8.
-- Based on the feasibility study estimates, the Etango Project is expected
to produce an average of 5-7Mlbs U3O8 per year over a +20 year mine life
at an estimated average life-of-mine cash cost of US$42/lb U3O8.
Estimated operating costs incorporate savings identified in previous
work and also reflect recent cost pressures in southern Africa and
globally. Due to the relatively shallow nature of the pit design and
uniform leaching characteristics of the deposit, the Project has a flat
operating cost profile thereby supporting its long term viability.
-- A simple heap leaching processing route has been selected as the most
appropriate, lowest risk and lowest cost approach. The heap leach
circuit uses proven design knowledge that is well established for large
copper heap leach operations. Through extensive laboratory testwork in
2010, the Etango mineralisation has been shown to leach rapidly and
uniformly across the deposit, with low acid consumption and consistently
high (+90%) uranium recoveries. The absence of clay is an advantage for
heap leach performance. A heap leach recovery rate of 85% has been used
for plant design purposes.
-- Capital costs of US$638 million, before mining fleet and working capital
but including a proportion of desalinated water infrastructure capital.
The accuracy of capital and operating cost estimates has been greatly
enhanced by sourcing competitive supplier quotes for a large majority of
costed items.
-- Upside potential associated with the recently discovered Hyena and
Ondjamba satellite deposits, and from exploration drilling activities in
the Etango licence area planned for early 2011. Focus areas include
Rossingberg, Cheetah and Ombepo.
Bannerman CEO Len Jubber
said: "The extensive work completed in 2010 has substantially de-risked
the technical aspects of the Project and delivered a robust capital and
operating cost estimate. Etango is a globally
significant and low risk project with unparalleled leverage to the rising
uranium price. Bannerman is well positioned to benefit from the clean nuclear
power generation plans of numerous countries, particularly China and other
Asian nations."
"In addition, our generative
exploration work over the past six months has been very successful in
identifying two new satellite deposits close to the Etango
Project, while exciting drill targets have been identified immediately to the
north of the Swakop River."
About Bannerman - Bannerman Resources
Limited is an emerging uranium development company with interests in two
properties in Namibia, a southern African country considered to be a premier
uranium mining jurisdiction. Bannerman's principal asset is its 80%-owned Etango Project situated southwest of Rio Tinto's Rossing uranium mine and to the west of Paladin Energy's
Langer-Heinrich mine. Etango is one of the world's
largest undeveloped uranium deposits. Bannerman is focused on the feasibility
assessment and development of a large open pit uranium operation at Etango. More information is available on Bannerman's
website at www.bannermanresources.com.
Technical Disclosures
Certain disclosures in this release,
including management's assessment of Bannerman Resources Ltd's plans and
projects, constitute forward-looking statements that are subject to numerous
risks, uncertainties and other factors relating to Bannerman's operation as a
mineral development company that may cause future results to differ
materially from those expressed or implied in such forward-looking
statements. The following are important factors that could cause the
Company's actual results to differ materially from those expressed or implied
by such forward looking statements: fluctuations in uranium prices and
currency exchange rates; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits;
uncertainty of estimates of capital and operating costs, recovery rates,
production estimates and estimated economic return; general market
conditions; the uncertainty of future profitability; and the uncertainty of
access to additional capital. Full descriptions of these risks can be found
in the Company's various statutory reports, including its Annual Information
Form available on the SEDAR website, sedar.com. Readers are cautioned not to
place undue reliance on forward-looking statements. Bannerman Resources Ltd
expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise.
The Company has not completed feasibility
studies on its projects. Accordingly, there is no certainty that such
projects will be economically successful. Mineral resources that are not ore
reserves do not have demonstrated economic viability.
Bannerman Resources Limited has
previously filed a number of releases and reports which document various
aspects of its mineral properties. These releases and reports include: (1)
National Instrument 43-101 Technical Document dated 31 August 2009 and titled
"Etango Uranium Project, Namibia, July 2009
Resource Update"; (2) National Instrument 43-101 Technical Document
dated 18 September 2008 and titled "Etango
Project Anomaly A - August 2008 Resource Update"; (3) Annual Information
Form for the year ended 30 June 2010 dated 21 September 2010, and (4) news release
dated 28 October 2010 and titled "Bannerman Significantly Expands Etango Project Uranium Resource".
The information in this release relating
to the geology and exploration results of the projects owned by Bannerman
Resources Ltd is based on information compiled by Mr
Kieron Munro, Head of Geology of Bannerman and a
full time consultant to the Company. Mr Munro is a
Member of the Australian Institute of Geoscientists, a Recognised
Professional Organisation by the Australasian Joint
Ore Reserves Committee, who has sufficient experience relevant to the style
of mineralisation and types of deposits under
consideration and to the activity which is being undertaken to qualify as a
Competent Person as defined in the 2004 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves" and as a Qualified Person for purposes of Canadian National
Instrument 43-101. Mr Munro consents to the
inclusion in this release of the matters based on his information in the form
and context in which it appears.
The information in this release relating
to the Mineral Resources of the Etango Project is
based on a resource estimate completed by Mr Neil Inwood, and the information in this report relating to
the Mineral Resources of the Ondjamba and Hyena
deposits is based on a resource estimate completed by Mr
Neil Inwood and Mr Steve
Le Brun. Both Mr Inwood and Mr Le Brun are full time employees of Coffey Mining Pty Ltd.
Each of Messrs. Inwood and Le Brun
are Members of The Australasian Institute of Mining and Metallurgy and have
sufficient experience relevant to the style of mineralisation
and types of deposits under consideration and to the activity which is being
undertaken to qualify as a Competent Person as defined in the 2004 Edition of
the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves", and are independent consultants to
Bannerman and Qualified Persons as defined by Canadian National Instrument
43-101. Messrs. Inwood and Le Brun
consent to the inclusion in this release of the matters based on their
information in the form and context in which it appears.
ABN 34 113 017 128
Contact:
Contacts:
Bannerman Resources Limited - Perth, Western Australia
Len Jubber
Chief Executive Officer
+61 (0)8 9381 1436
admin@bannermanresources.com.au
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