Bannerman Resources Limited

Bannerman Resources Limited

October 23, 2013 07:00 ET

Bannerman Resources Limited: Quarterly Activities Report for the Quarter Ended 30 September 2013

PERTH, AUSTRALIA--(Marketwired - Oct. 23, 2013) - Bannerman Resources Limited (ASX:BMN)(TSX:BAN)(NSX:BMN) ("Bannerman") is pleased to announce highlights from its September 2013 Quarterly Activities Report released today. The full report is available on Bannerman's website at and on SEDAR (

During the September 2013 quarter, Bannerman maintained its focus on cash preservation and activities that will enable fast tracking a commitment to the development of the Etango Project in a rising uranium price environment.


  • Agreement reached with major shareholder Resource Capital Fund IV LP ("RCF") to extend the maturity of the existing A$8 million convertible note from 31 March 2014 to 30 September 2016.

  • Last shipment of uranium under the 20 year High Energy Uranium agreement between Russia and the USA heralds the end of a major source of secondary uranium supply.

  • Project optimisation work identifying potential areas of improvement.

  • Global significance of the advanced Etango Project increasing as low uranium price drives rationalisation in the uranium industry.

  • Ongoing reductions in overhead expenditure.

  • A$3.1 million cash as at 30 September 2013.

The extension of the convertible note term by major shareholder RCF, subject to approval by Bannerman shareholders, is a tremendous sign of support for the Company and the strategy of positioning the Etango Project for fast track development in a rising uranium price environment.

The world's current annual uranium production is significantly less than annual demand from nuclear power utilities, with the shortfall historically satisfied through the sale of uranium from inventories and secondary sources, such as the 1993 High Energy Uranium (HEU) agreement between Russia and the USA.

The past quarter saw the long awaited final shipment of low energy uranium under the agreement, also referred to as the "Megatons to Megawatts" program. As scheduled, this major source of secondary uranium resulting from the down blending of weapons grade uranium has come to a close after 20 years, with the agreement scheduled to expire later this year.

On the demand side there are currently 70 new reactors, equating to 16% of current operable reactors, under construction. The impact of this wave of future demand has however been offset by the temporary closure of reactors in Japan and the permanent closure of reactors in Germany, respectively accounting for 12% and 4% of historical demand. However taking into the account the gradual restarting of reactors in Japan likely to commence next year, this adverse effect will rapidly diminish.

Despite the anticipated medium to long term widening in the supply - demand gap, the uranium price has continued to decline resulting in significant rationalisation in the uranium industry. This action will inevitably adversely impact on the industry's ability to respond to the upturn in the uranium price. By contrast the technical and environmental feasibility plus the development pathway and timetable for Bannerman's Etango Project has been confirmed by way of the DFS completed in 2012.

As a consequence, Bannerman's advanced Etango Project is one of the very few globally significant uranium projects that can realistically be brought into production in the medium term.

Bannerman shareholders are well placed to capitalise on the widely anticipated recovery in the uranium market.

Len Jubber, Chief Executive Officer, 23 October 2013

About Bannerman - Bannerman Resources Limited is an exploration and development company with uranium interests in Namibia, a southern African country which is 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 CGNPC's Husab Project currently under construction 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 operation at Etango. More information is available on Bannerman's website at

Technical Disclosures

Certain disclosures in this report, 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. 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.

Mineral Resources that are not Ore Reserves do not have demonstrated economic viability.

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. Drill samples were analysed for uranium by the Bureau Veritas Laboratory in Swakopmund, Namibia. Bureau Veritas is an International Laboratory Group with operations in 140 countries, including Ultratrace and Amdel in Australia. 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, half-core and rock-chip samples are retained at Bannerman's Goanikontes Warehouse Facility (GWS) on site.

The information in this report relating to the Ore Reserves of the Etango Project is based on information compiled or reviewed by Mr Harry Warries, a full time employee of Coffey Mining Pty Ltd. Mr Warries is a Fellow of The Australasian Institute of Mining and Metallurgy and 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 is an independent consultant to Bannerman and a Qualified Person as defined by Canadian National Instrument 43-101. Mr Warries consents, and provides corporate consent for Coffey Mining Pty Ltd, to the inclusion in this report of the matters based on his information in the form and context in which it appears.

ABN 34 113 017 128

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