Bannerman Resources Limited

Bannerman Resources Limited

March 04, 2010 05:30 ET

Bannerman Reports Positive Drilling Results and Re-Commences Regional Exploration Programs


- Measured resources are expected to increase in the Anomaly A area of the Etango deposit following further broad near-surface and higher grade RC infill intersections.

- Drilling results from mid-2009 are currently being incorporated into the Etango resource model. An updated mineral resource estimate is scheduled for release in March.

- Re-commencement of regional exploration activities.

PERTH, AUSTRALIA--(Marketwire - March 4, 2010) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") announces that positive results have been received from recent infill drilling in the Anomaly A area of the Etango deposit which are expected to significantly upgrade the confidence of the mineral resource estimate. More good results have also been obtained close to surface from infill and extensional drilling in the Oshiveli and Onkelo areas in the northern part of the Etango deposit. An updated mineral resource estimate for the Etango deposit is expected to be released in March and will underpin the mining study update which is underway as part of the Definitive Feasibility Study ("DFS").

Bannerman has largely completed the DFS resource definition drilling work at Etango and is now well positioned to re-commence regional exploration programs on its Namibian titles which cover 1300km2 in a world-class uranium setting. This regional work will examine the potential for new uranium discoveries on the Company's Etango, Swakop River and Botswanan exploration licence areas in southern Africa.

Bannerman CEO Len Jubber said: "Further drilling on the Etango deposit has confirmed the continuity of the high-grade mineralisation inside the starter pit area at Anomaly A. The results are expected to increase the resource confidence in this area to Measured status, with the resource update due for release in March." 

"Following the successful delineation of the Etango resource, the Bannerman geological team will now operate as two groups – one focusing on integrating the resource model into the Etango Project development, and the other on regional exploration of Bannerman's Etango, Swakop River and Botswanan exploration licence areas. The Company considers this dual focus will provide Bannerman with increased opportunity to leverage its geological understanding of the area gained over the past five years while simultaneously progressing activity on the Etango Project."

Etango Project Drilling Update

Anomaly A

Detailed close-spaced infill drilling was undertaken at Anomaly A in November and early December 2009. The assay results from two programs are detailed in the Attachment to this release. The first comprised reverse circulation ("RC") drillholes in the southern part of the Anomaly A area aimed at infilling an area from Inferred to Indicated mineral resource status. 

The second program, which was recently completed, included a 3,410 metre program of infill RC drilling to upgrade the mineral resource classification in the planned initial starter pit area of the Etango Project from Indicated to Measured status. This program returned positive results that are expected to significantly upgrade the confidence of the Etango resource estimate and will be used in detailed mine planning and the DFS for the Project. 

Broad near-surface intersections have been returned from the RC drilling in this area, including:

Drillhole No. From Depth (m downhole) Downhole Interval (m) Grade (ppm U3O8)
GARC0567 118 53 248
GARC0569 11 5 451
" 80 24 258
GARC0571 57 63 372
including 76 10 430
GARC0572 17 19 378
" 63 32 227
including 66 8 523
GARC0580 105 25 329
GARC0581 132 33 258
GARC0582 23 24 556
  83 22 361
GARC0583 64 63 229
GARC0584 40 7 517
GARC0584 87 36 513
" 96 8 543
" 108 8 1,223
GARC0590 87 37 306
GARC0591 23 69 237
GARC0593 10 50 278
including 49 10 635
GARC0595 15 41 350
including 23 17 422

Oshiveli and Onkelo

The drilling at Oshiveli and Onkelo targeted conversion of Inferred to Indicated resources, closing the gap between the two areas, and locally extending the mineralisation. More good shallow results were obtained from infill and extensional drilling at these prospects. 

Results from a further five infill diamond drillholes and one infill RC drillhole at Oshiveli continue to support the geological interpretation and grade assessments in this area. The addition of the intersected mineralisation is expected to add to the size and classification of the existing resource estimate in this location. There are currently two diamond drilling rigs conducting infill drilling at Oshiveli.

Diamond drilling at Onkelo and Oshiveli has returned above-average resource grade mineralisation, including the following intersections:

Drillhole No. From Depth (m downhole) Downhole Interval (m) Grade (ppm U3O8)
GSHDD0011 13.7 28.0 358
including 16.7 10.0 585
  67.4 10.9 327
GSHDD0012 2.0 10.2 349
GNKDD0011 162.76 40.12 255


Further reconnaissance drilling on the third of three parallel lines at the Ondjamba Prospect was completed in late 2009 and the results reported in this release are the assays that were subsequently received. Whilst a number of the RC drillholes at Ondjamba have intersected uranium mineralisation in the form of high grade and narrow structures, it is not planned to complete further infill drilling in this area in the near future.

Resource Update

Bannerman has completed more than 284,000 metres of drilling within the Etango Project. An updated mineral resource estimate, incorporating the 60,000 metres drilled since June 2009, is due for release in March. Inclusion of the additional drilling into the resource model is expected to significantly improve the confidence of the resource estimate such that the vast majority will comprise Measured and Indicated resource material. 

Bannerman has drilled and modelled the Etango deposit to the extent that it is now defined to a high level of confidence and forms a robust basis for detailed DFS mine planning purposes.

Regional Exploration

Bannerman is expanding its regional exploration efforts on the Etango and Swakop River tenements, which cover 1300km2 in a world-class uranium setting. Exploration efforts over the next 12 months will focus on a range of exploration techniques to identify:

  • Near-Project high-grade satellite deposits in the southern areas of the Etango licence under desert sand cover where geophysical work in 2009 resulted in the identification of a number of prospective targets adjacent to buried domal structures; and

  • New mineralisation on the Etango, Swakop River and Botswana tenements.

Bannerman holds tenure over two Exclusive Prospecting Licences in Namibia (EPLs 3345 and 3346) and three Prospecting Licenses in Botswana (PLs 131/2005, 132/2005 and 133/2005). All properties lie in proximity to known uranium mines and deposits including Rössing, Langer Heinrich, Rössing South and others in Namibia and Letlhakane and Foley in Botswana. 

Minimal exploration has been completed on the Namibian tenements beyond the immediate Etango Project area. The Etango tenement (EPL 3345) covers a total area of 500km2 and contains the Etango deposit, on which a Preliminary Feasibility Study has recently been completed for an extensive open pit mining operation. A DFS is now underway.

An exploration plan is being compiled based on early exploration of the most promising known targets (refer Figure 1 on the following page), in conjunction with the development of targets, to define new uranium mineralisation. 

The exploration work planned for 2010 will comprise ground-based geological mapping, extensive radon cup surveys, detailed ground radiometric surveys, electromagnetic geophysics surveys and drilling. The prospective target areas, adjacent to buried domal structures and lithological contacts, identified by the mid-2009 regional geophysical re-interpretation will also be followed up. 

Mr Jubber said "The Etango tenement is the most promising area as it contains the bulk of the known prospects and anomalies, and lies in the heart of the well-defined hard-rock uranium mineralisation corridor that runs southwest from the Valencia deposit down through Rössing, Rössing South, Ida Dome and Etango. Much of the licence area is also under-explored or has never been explored."

All previous exploration has been based on the concept of discovering uranium mineralisation by radiometric surveys, either airborne or on the ground, and it is now understood that this has not provided a definitive test of these areas.

"The Company's work at Etango has given Bannerman a unique understanding of the nature and controls on primary uranium mineralisation in the region. It is possible, as with Etango, that deposits exist within the licence areas that exhibit minimal radiometric signature at surface", Mr Jubber said. 

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 Rössing 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

Regulatory Disclosures:

Bannerman Resources Limited ("Bannerman") manages its drilling and assaying activities in accordance with industry standard quality assurance/quality control (QA/QC) procedures. Samples are collected by Bannerman personnel and prepared in accordance with specified procedures at the relevant assay laboratories. The primary assay laboratory is SGS in Johannesburg Laboratory site reviews are undertaken. Assay QA/QC involves the use of assay standards (sourced from African Mineral Standards (AMIS) in Johannesburg, made from Bannerman pulp rejects and cross-checked through umpire laboratories for which the round robin reports are available), field duplicates, blanks and barren quartz flushes. A third party "umpire" laboratory (Genalysis in Perth) is used to cross-check and validate approximately 5% of the assay results in accordance with standard procedures. Sample coarse rejects are retained and approximately 5% of samples are re-submitted for further assay verification. All sample pulps are retained at a storage facility in Johannesburg and half-core and rock-chip samples are retained at site.

The information in this release that relates to the exploration results of the projects owned by Bannerman is based on information compiled by Mr Kieron Munro, Head of Geology for Bannerman and a full time consultant to Bannerman. 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 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 National Instrument 43-101 of the Canadian Securities Administrators. Mr Munro consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

Bannerman 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.

Certain disclosures in this release, including management's assessment of Bannerman'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 Bannerman'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 Bannerman's various statutory reports, including its Annual Information Form available on the SEDAR website, Readers are cautioned not to place undue reliance on forward-looking statements. Bannerman 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.

Contact Information

  • Bannerman Resources Limited
    Len Jubber
    Chief Executive Officer
    Perth, Western Australia
    +61 (0)8 9381 1436
    Bannerman Resources Limited
    Peter Kerr
    Chief Financial Officer
    Perth, Western Australia
    +61 (0)8 9381 1436
    Bannerman Resources Limited
    Ann Gibbs
    Investor Relations
    Toronto, Ontario, Canada
    +1 416 388 7247
    Australasian Media
    David Tasker
    Professional Public Relations
    +61 (0)433 112 936