Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

April 21, 2010 20:17 ET

Bannerman Resources Releases Quarterly Activities Report For the Period Ended 31 March 2010

PERTH, AUSTRALIA--(Marketwire - April 22, 2010) - Australian-based uranium mine development and exploration company, Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman"), has today released its activity and cash flow report for the quarter ended March 31, 2010. Please refer to Bannerman's Quarterly Activities Report and Mining exploration entity quarterly report (Appendix 5B) filed on the ASX website (www.asx.com) and available on the Company's website at www.bannermanresources.com.

During the March 2010 quarter, Bannerman continued to advance the Definitive Feasibility Study of its 80%-owned Etango Project, evaluate opportunities for project and/or corporate partners, and develop a comprehensive exploration program.

The project team has been further strengthened with key technical personnel and, through extensive metallurgical testwork, has continued to advance the understanding of the interaction between the mineralogy of the deposit and the various metallurgical processes under consideration. The mining review is progressing well and Bannerman expects to be able to reduce the mining cost estimates announced in the December 2009 Preliminary Feasibility Study.

The Etango Project is one of the world's largest undeveloped uranium deposits located in a premier uranium mining jurisdiction. Etango is strategically located in Namibia with the economic advantage of its proximity to infrastructure including road, rail and electricity networks, one of southern Africa's largest commercial ports, water infrastructure, and to a community which supports a skilled labour force. These factors, combined with the significant scale of the forecasted annual production, low technical risk (including responsive metallurgy, near-surface deposit), low permitting risks and a relatively flat operating cost profile, define a long-life project with a unique opportunity in a world where nuclear energy and the demand for uranium is projected to grow significantly.

HIGHLIGHTS

  • 38% increase in Measured & Indicated resources for the Etango deposit from 102.8Mlbs to 142.1Mlbs U3O8, accounting for 88% of the total resource estimate. Overall metal content has increased 7%. 

  • A mining review based on the updated resource model is progressing well with an expected increase in estimated mineable resources and decrease in estimated mining costs.

  • Metallurgical testwork has identified that the deposit not only leaches very rapidly but also that a substantial proportion of the uranium leaches at a low level of acid concentration

  • Environmental clearance has been received from the Namibian Ministry of Environment and Tourism.

  • Regional exploration activities have recommenced on the Company's Namibian properties. 

  • Further management and feasibility study appointments.

  • Cash reserves at quarter end of A$20.4 million (31 December 2009: A$23.2 million).

Len Jubber, Chief Executive Officer

22 April 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 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 the Company's website at www.bannermanresources.com.

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 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 the 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 Mr Brian Wolfe who are full time employees of Coffey Mining Pty Ltd. Each of Messrs. Inwood and Wolfe 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 Wolfe 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 Information

  • Bannerman Resources Limited
    Perth, Western Australia
    Len Jubber, Chief Executive Officer
    +61 (0)8 9381 1436
    admin@bannermanresources.com.au
    or
    Bannerman Resources Limited
    Perth, Western Australia
    Peter Kerr, Chief Financial Officer
    +61 (0)8 9381 1436
    or
    Bannerman Resources Limited
    Toronto, Ontario, Canada
    Ann Gibbs, Investor Relations
    +1 416 388 7247
    ann@bannermanresources.com
    or
    Australasian Media
    Professional Public Relations
    David Tasker
    +61 (0)433 112 936
    david.tasker@ppr.com.au
    or
    Namibian Media
    Windhoek, Namibia
    Brandon Munro, GM, Corporate Development
    +264 61 226 621