Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

July 21, 2010 05:30 ET

Bannerman Reports New Regional Exploration and Infill Drilling Results

PERTH, AUSTRALIA--(Marketwire - July 21, 2010) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") announces encouraging new exploration and infill drilling results from its Etango Project in Namibia, southwestern Africa:

  • Numerous uranium intersections have been returned at the Ondjamba Prospect from follow-up RC drilling on the previously-announced Radon cup anomalies. Further drilling is scheduled to determine the potential for a satellite pit in this location, adjacent to the southern end of the Etango deposit.
  • Anomalous zones have been identified from a Radon cup survey at the Rössingberg Prospect, 8km to the north of Etango. Drilling programs to test the identified anomalies are now scheduled.
  • Additional high-grade intersections have been received from infill drilling at the Oshiveli area of the Etango deposit, with the intersected mineralisation expected to add to the confidence of the existing resource estimate in this area. 
  • The next Etango resource update is scheduled for the end of the September 2010 quarter.

Bannerman CEO Len Jubber said: "Drilling of highly anomalous Radon gas occurrences within the Ondjamba Prospect, only 2km east of the proposed Etango open pit, has confirmed the presence of concealed uranium mineralisation. A number of drillholes have intersected relatively shallow resource grade mineralisation within 100 metres of surface in this area. We are very pleased with this early drilling success." 

"The potential for a satellite pit at Ondjamba is exciting given the close proximity to the existing Etango deposit and the additional value it could bring to the Project."

"As well as the recent drilling success at Ondjamba, a Radon cup survey has now been completed at the Rössingberg Prospect and RC drilling is to commence shortly to test the identified anomalies."

RC Drilling on Etango South RadonX™ Anomalies

On 10 May 2010, Bannerman announced the results of a RadonX™ survey in areas within and surrounding the Etango deposit. The survey covered an area of approximately 50km2 and was successful in identifying a large number of potentially uraniferous areas indicated by anomalous radon gas measurements. The largest of these anomalies have been named "REA" to "REG" (Radon Etango A, etc). 

Bannerman commenced reverse circulation ("RC") drill testing of these anomalies in mid May. By 20 July 2010, a total of 42 RC drillholes had been completed on the anomalies. The best drilling results have been returned from the Ondjamba "REC" Anomaly, approximately 2km to the east of the proposed Etango open pit. 

The plan below shows the high Radon gas anomalies over the Etango deposit area, with the REC Anomaly drilling results labeled. The drilling results are tabulated in full in the Attachment to this release. The areas shown in pink and red reflect the highest Radon emissions while the green and blue areas have the lowest. The red dots show the completed RC drillholes. The assay results obtained to date, from the first 12 drillholes, confirm the discovery of broad mineralised zones within approximately 100 metres of surface.

To view the first graphic associated with this press release, visit the following link: http://media3.marketwire.com/docs/ban0721fig1.pdf.

Drilling is continuing in the Ondjamba REC area, following which preliminary mine optimisation work is planned to test the economic viability of a satellite open pit at Ondjamba. If deemed economic, the area will be infill drilled and incorporated into the Definitive Feasibility Study currently underway. 

Drilling on most of the other anomalies has returned thinner, lower grade mineralisation, close to the surface. To date, only seven of the identified anomalies have been drilled.

Rössingberg RadonX™ Survey Results

During June and July 2010, Bannerman extended its RadonX™ survey program to the Rössingberg Prospect area approximately 8km to the north of the Etango deposit. The survey area in this location covers approximately 70km2 and includes the Rössingberg, Ombuga and Gohare Prospect areas which comprise a 16km long zone of scattered radiometric anomalies. The area is variously covered with soil, sand, buried channels and weathered and depleted bedrock. The Rössingberg survey comprised approximately 2,800 cups on a 100m x 200m grid pattern.

The RadonX™ cup survey method is a cost-effective method for identifying the potential for uranium mineralisation down to a depth of up to 100 metres beneath desert sands and surface material. The presence of cover and depleted surface material has previously prevented detection of uranium mineralisation through field mapping or radiometric geophysics. 

The diagrams below show the Etango licence area on the left and the Radon survey results on the right, with the areas coloured pink and red reflecting the higher tenor Radon survey anomalies. The previously-reported Radon survey contours for the Etango area are also shown for reference.

To view the second graphic associated with this press release, visit the following link: http://media3.marketwire.com/docs/ban0721fig2.pdf.

It is notable that the Rössingberg Radon anomalies lie in two main trend lines running northeast to southwest, roughly coincident with the previously identified radiometric anomalies. There are high tenor Radon anomalies in numerous areas which have never been drill tested.

The Rössingberg trend represents a large mineralised system up to 16km long, with the potential for an undiscovered major deposit. The best anomalism appears to lie in the centre of the Rössingberg survey area, in a location with minimal radiometric anomalism. A drilling program is scheduled to test the identified Radon anomalies at Rössingberg.

Oshiveli Diamond Drilling Results

Recent diamond drilling at Oshiveli in the northern part of the Etango deposit has targeted conversion of known Inferred Resource material to Indicated and Measured Resource categories, and has also sought to confirm interpreted extensions of the known mineralisation.

Favourable shallow and above average grade intersections from a further 12 infill diamond drillholes at Oshiveli (full results listed in the Attachment) continue to support the geological interpretation and grade assessments in the area. The addition of the intersected mineralisation is expected to enhance the confidence (i.e. classification) of the existing resource estimate in this location. 

Drillhole No. From Depth
(m downhole)
Downhole
Interval (m)
Grade
(ppm U3O8)
GSHDD0030 Surface 49.4 456
GSHDD0036 0.7 12.0 317
" 83.0 2.4 580
" 100.0 4.7 880
" 113.5 23.0 298
GSHDD0040 36.3 10.6 334

Exploration Programs

Bannerman is now actively engaged in regional exploration in Namibia and Botswana. All of Bannerman's exploration properties lie in close proximity to known uranium mines, deposits and anomalies including Rössing, Langer Heinrich and others in Namibia and Letlhakane and Foley in Botswana. 

The exploration work underway now includes ground-based geological mapping, Radon cup surveys, ground radiometric surveys and electromagnetic geophysical surveys. In the past, exploration in these areas was based on the concept of discovering uranium mineralisation by radiometric surveys, either airborne or on the ground, and the programs now underway will complement this work by better testing areas of cover and surface depleted rocks which were not amenable to radiometric surveys.

Work has also been completed on ground based geophysical surveys at Etango and Swakop River. These results will be further assessed and will be used for future drill targeting. Work is also now underway on access and planning for a RadonX™ survey on the Botswana tenements, due to commence in the near future.

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.

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 Johannesburg where 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 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 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, sedar.com. 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.

ABN 34 113 017 128

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