Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

October 31, 2011 05:00 ET

Bannerman Resources Limited: Quarterly Activities Report

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 31, 2011) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") is pleased to announce highlights from its September 2011 Quarterly Activities Report released today. The full report is available on the Company's website at www.bannermanresources.com.au and on SEDAR (www.sedar.com).

During the September 2011 quarter, Bannerman progressed the Definitive Feasibility Study ("DFS") on its Etango Uranium Project in Namibia and continued various corporate discussions with Hanlong and a number of potential development partners.

HIGHLIGHTS

  • Etango Project DFS – Significant progress was made on the Etango Project DFS including confirmation of a 33% increase in the processing throughput to 20 million tonnes per annum with a resultant 20% increase in uranium production to 6-8 million pounds U3O8 per annum, optimisation of the Etango site layout, preliminary design of the crushing, agglomeration and heap leach circuits, and determination of an optimal heap height of 5 metres. The DFS remains on schedule for completion by the end of the March 2012 quarter.
  • Exploration - Bannerman focused its exploration efforts during the quarter on areas adjacent to the Etango deposit. A field investigation to the west of the Onkelo area in the northern part of the Etango deposit strongly indicated that the alaskite units in this area are consistently mineralised. Drilling to confirm the mineralisation in this area is being planned.
  • Acquisition Proposal and development partner search – Bannerman announced early in the quarter that it had received a conditional proposal from Hanlong Mining Investment Pty Ltd, a subsidiary of Chinese conglomerate Sichuan Hanlong Group ("Hanlong"), for the acquisition of 100% of Bannerman by way of a scheme of arrangement. As announced to the market on 24 October 2011, following engagement with Hanlong and its finance providers, the Board of Bannerman concluded that it is unlikely that Bannerman will know whether Hanlong is in a position to enter into a binding agreement with the Company within a timeframe that would meet the reasonable expectations of Bannerman's shareholders and other stakeholders, including the Namibian Government. Accordingly, Bannerman has formally advised Hanlong that, whilst Bannerman remains willing to consider a less conditional proposal, Bannerman will now focus on its existing discussions with other parties regarding development joint ventures and alternative corporate arrangements.
  • Extension of Convertible Note – Bannerman reached agreement in the quarter with its major institutional shareholder, Resource Capital Funds, to extend the maturity date of the existing A$10 million convertible note from mid-December 2011 to 31 March 2012, or such later date as may be agreed (but not beyond 30 September 2012).
  • Cash Position - Bannerman's cash reserves as at 30 September 2011 totalled A$11.5 million.

Len Jubber, Chief Executive Officer, 31 October 2011

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 and Cautionary Disclosures

Certain disclosures in this release, including management's assessment of Bannerman Resources Limited'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.

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 report relating to the Mineral Resources of the Etango Project is based on a resource estimate completed or supervised by Mr Neil Inwood, a full time employee of Coffey Mining Pty Ltd. Mr Inwood 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 Qualified Person as defined by Canadian National Instrument 43-101. Mr Inwood 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.

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