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BANNERMAN RESOURCES DEC 2010 QUARTERLY ACTIVITIES REPORT
January 28, 2011 -- Perth, Australia -- Bannerman Resources Limited (ASX: BMN, TSX: BAN, NSX: BMN) ("Bannerman" or the �Company�) is pleased to announce highlights from the Company�s Quarterly Report. The complete report is available on the company website at www.bannermanresources.com and on SEDAR (www.sedar.com).
During the December 2010 quarter, Bannerman Resources Limited (�Bannerman� or the �Company�) produced a comprehensive update to the feasibility study on its 80%-owned Etango Project in Namibia, one of the world�s largest undeveloped uranium projects, and successfully completed a A$15 million equity capital raising. Bannerman is now well positioned to aggressively pursue development of Etango and to grow its mineral resource base through exploration activities on its highly prospective landholdings. Given the scale of the Etango Project, Bannerman offers shareholders substantial investment exposure to the rapidly improving fundamentals of the uranium industry.
HIGHLIGHTS
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Resource expansion - Measured and Indicated resources increased 5% to 149Mlbs U3O8 and Inferred resources increased more than 200% to 64Mlbs U3O8.
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Etango Project feasibility � The study update indicates average annual production 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:
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A simple heap leaching processing flowsheet has been selected, featuring rapid and uniform leaching across the deposit, low acid consumption and consistently high (+90%) laboratory uranium recoveries.
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Capital costs of US$638 million, before mining fleet and working capital but including a US$60 million accuracy provision and an allowance for the proportional cost of constructing a water desalination plant and associated piping infrastructure.
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Exploration upside - Exploration drilling activities in the northern area of the Etango licence area are planned for the March 2011 quarter. Focus areas include R�ssingberg, Cheetah and Ombepo where radon cup and subsequent ground radiometric surveys last year identified key target anomalies.
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Funding secured � Completion of the A$15 million share placement financing increasing cash reserves at quarter end to A$22.7 million (30 September 2010: A$12.1 million). This financing allows the Company to aggressively pursue development of the Etango Project.
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Uranium Market � The uranium spot price continues its recent upward trend and is now at US$70/lb U3O8 compared with US$47.50/lb U3O8 at the end of the September 2010 quarter.
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Key objectives for 2011 � Bannerman�s key business objectives for 2011 are to complete a definitive feasibility study on the Etango Project, to test a range of Bannerman�s prospective regional exploration targets, to secure a development partner and to obtain the grant of the Etango mining licence.
Bannerman�s CEO, Len Jubber, said: �Bannerman is extremely well positioned to pursue development of the Etango Project, with the focus in early 2011 on increasing the existing 60% utilisation of the mineral resource base, examining various throughout and materials handling opportunities to reduce estimated operating costs, and the commencement of drilling on promising exploration targets near to the existing project location�.
Len Jubber, Chief Executive Officer
28 January 2010
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 R�ssing 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 the Company�s website at www.bannermanresources.com.
For further information please contact:
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Len Jubber
Chief Executive Officer
Perth, Western Australia
Tel: +61 (0)8 9381 1436
admin@bannermanresources.com.au
Australasian Media
David Tasker
Professional Public Relations
Tel: +61 (0)433 112 936
david.tasker@ppr.com.au
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Peter Kerr
Chief Financial Officer
Perth, Western Australia
Tel: +61 (0)8 9381 1436
Namibian Media
Brandon Munro
GM, Corporate Development
Windhoek, Namibia
Tel: +264 61 226 621
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Ann Gibbs
Investor Relations
Toronto, Ontario, Canada
Tel: +1 416 388 7247
ann@bannermanresources.com
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Technical Disclosures
Certain disclosures in this report, 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.
The information in this report 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 report of the matters based on his information in the form and context in which it appears.
The information in this report 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 report of the matters based on their information in the form and context in which it appears.
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