Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

January 21, 2010 05:00 ET

Bannerman Releases Quarterly Activities Report For the Period Ended 31 December 2009

PERTH, AUSTRALIA--(Marketwire - Jan. 21, 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 December 31, 2009. 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.

Highlights

- Completion of the Etango Uranium Project Preliminary Feasibility Study demonstrating the technical and economic viability of the Project at long term contract uranium prices:

-- Production estimated to commence in late 2013 with modelled output of 5-7Mlbs U3O8 per annum over a +16 year mine life.

-- Extensive Measured & Indicated resources of 102.8Mlbs U3O8 at an average grade of 227ppm U3O8, and Inferred resources of 49.2Mlbs U3O8 at an average grade of 217ppm U3O8 (reported at a cut-off grade of 100ppm U3O8).

-- Subject to final confirmatory metallurgical testwork, processing is to be undertaken by agitated-tank leaching of a high-grade (3,500-4,000ppm U3O8) flotation concentrate for overall uranium processing recoveries of +90%.

- The Definitive Feasibility Study is underway:

-- Key opportunities are being pursued to improve project economics and extend mine life through a range of resource expansion, mining improvement, processing flowsheet optimisation and other initiatives.

-- The next phase of metallurgical locked-cycle testwork is underway and results are expected by the end of January. Final pilot plant testwork is scheduled to start in February and be completed by quarter end.

-- An update of the mineral resource estimate incorporating drilling completed since mid-2009 is due for release later in the current quarter.

- Drilling is ongoing at Etango and totaled 283,000 metres at the end of 2009, providing geological confidence and extending the Etango deposit's contiguous strike length to 6km.

- Etango Project Mining Licence application lodged with the Namibian Government. No substantial legislative, environmental or social impediments for project development have been identified, and local community support has been received.

- Cash reserves as at 31 December 2009 of A$23.2 million.

- Appointment of former Rio Tinto senior mining executive Dr David Smith to the Board.

During the quarter, Bannerman announced the results of its Preliminary Feasibility Study ("PFS") on the Etango Project and continued to drill aggressively to improve the confidence and size of the Etango mineral resource estimate. Bannerman has progressed to a Definitive Feasibility Study ("DFS"), with the next stage of metallurgical testwork already completed in January, and key mining study and operating cost initiatives currently underway.

The Etango Project is one of the world's largest undeveloped uranium deposits located in a premier uranium mining jurisdiction, offering long term security of supply for end-users within the timeframe in which there is growing consensus that supply will be constrained as the nuclear renaissance gathers momentum. These factors, combined with the significant scale of forecast annual production, low technical and permitting risks, and relatively flat operating cost profile provide the Etango Project with substantial strategic value in a world where nuclear energy and the demand for uranium is projected to grow significantly.

About Bannerman - Bannerman Resources Limited is an emerging uranium development company with interests in two properties in Namibia, a southern African country recognised as 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 development of a large open pit uranium mining and processing operation at Etango. More information is available on the Company'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.

The information in this release relating to the Mineral Resources of the Etango Project is based on resource estimates completed by Mr Neil Inwood and Mr Iain Macfarlane both of whom are full time employees of Coffey Mining Pty Ltd. Each of Messrs. Inwood and Macfarlane 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 Macfarlane consent to the inclusion in this release of the matters based on their information in the form and context in which it appears.

The information in this report relating to mining studies undertaken on the Etango Project was completed by Mr Harry Warries of Coffey Mining Pty Ltd, a consultant to Bannerman Resources Ltd. Mr Warries is a Member of The Australasian Institute of Mining and Metallurgy and has extensive experience relevant to the activity which is being undertaken. Mr Warries consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this release relating to the metallurgical testwork undertaken on the Etango Project samples was completed by Mr Daryl Evans of Independent Metallurgical Operations Pty Ltd, a consultant to Bannerman Resources Ltd. Mr Evans is a Member of The Australasian Institute of Mining and Metallurgy and has extensive experience relevant to the activity which is being undertaken. Mr Evans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ABN 34 113 017 128

Contact Information

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