Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

December 01, 2010 06:01 ET

Bannerman Advances Etango Feasibility Study & Provides Interim Project Update

PERTH, AUSTRALIA--(Marketwire - Dec. 1, 2010) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(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 Rössingberg, 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 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 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 Information

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