Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

April 20, 2009 03:31 ET

Bannerman Resources Releases March Quarter Activities Report

PERTH, AUSTRALIA--(Marketwire - April 20, 2009) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN) ("Bannerman" or the "Company"), an Australian-based uranium mine development and exploration company, today releases its March 2009 quarterly activities report in accordance with the Australian Securities Exchange Listing Rules.

Highlights

- Increase of 33% in the Etango Project Indicated Resource estimate to 195.5 million tonnes ("Mt") at an average grade of 207 parts per million ("ppm") for 89.2 million pounds ("Mlbs") of U3O8, plus Inferred Resources of 87.0Mt at 195 ppm for 37.4Mlbs U3O8, reported at a cut-off grade of 100 ppm U3O8. As reported in the Company's news release of February 12, 2009, the updated mineral resource estimate was completed in accordance with National Instrument 43-101 by Coffey Mining Pty Ltd, an independent geological consultant to the Company.

- Broad and higher grade near-surface drilling results achieved within the Oshiveli and Onkelo areas. Drilling at Onkelo highlighted both the substantial width of the mineralised zones (including 119 metres at 249 ppm U3O8 from surface, and 94 metres at 263 ppm U3O8 from 3 metres downhole) and higher grade zones within 200 metres of surface (including 11 metres at 1143 ppm U3O8 from 180 metres downhole, 30 metres at 513 ppm U3O8 from 161 metres downhole, and 49 metres at 429 ppm U3O8 from 70 metres downhole).

- The preliminary feasibility study is on track for completion at the end of the current quarter. Metallurgical testwork has been advanced on selected processing routes, including the beneficiation of higher grade uranium concentrates for agitated leach recovery, and on heap leaching. Heap leach testwork on High Pressure Grinding Roll crushed fine product has achieved recoveries of 85-91%, with acid consumption at the lower end of expectations at approximately 20 kg/tonne.

- The executive team has been further strengthened with the appointment of Mr Ivan Saracik as Study Manager - Etango Project. Mr Saracik is a mechanical engineer with over 30 years global experience as a feasibility study and development project manager.

- Cash resources as at 31 March 2009 of A$4.6 million in addition to which the Company had VAT/GST receivables of A$1.4 million due for receipt in May. The Company has the option to draw down on the second A$10 million tranche of the Resource Capital Funds convertible note facility on or before 16 June 2009. Bannerman is evaluating alternative sources of funding to supplement existing working capital given the currently substantially higher share price compared to the conversion price associated with the second tranche.

- A General Meeting of shareholders was held in Perth on Thursday 16 April 2009 where approval was obtained for all of the resolutions including those relating to recent financing and other transactions, providing the Company with financing flexibility going forward.

The quarterly activities report is available on the Company's website at www.bannermanresources.com.au, on the Australian Securities Exchange website at www.asx.com.au, and can also be accessed on SEDAR at www.sedar.com.

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 and most significant asset is its 80% interest in the Etango Project situated southwest of Rio Tinto's Rossing uranium mine and to the west of Paladin Energy's Langer-Heinrich mine. Bannerman is focused on the feasibility assessment and development of a large open pit uranium operation at Etango. More information is available on the Company's website at www.bannermanresources.com.au.

The information in this report that relates to the Mineral Resources of the Etango Project is based on a resource estimate completed by Mr Neil Inwood who is a full time employee of Coffey Mining Pty Ltd. Mr Inwood is a Member 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 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 Resources and a Qualified Person as defined by NI 43-101. Mr Inwood 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 report that relates to the metallurgical test work undertaken on Etango Anomaly A Deposit samples was completed by Mr Gary Jobson who was a consulting metallurgist to Independent Metallurgical Operations Pty Ltd during the period. Mr Jobson is a Member of The Australasian Institute of Mining and Metallurgy and has extensive experience relevant to the activity which is being undertaken. Mr Jobson 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 report that relates to the exploration results of the projects owned by Bannerman Resources Ltd is based on information compiled by Mr Andrew Cunningham, who is a full time employee of the Company. Mr Cunningham is a Member of The Geological Society of South Africa, a Recognised Overseas 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 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 Cunningham consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

Certain disclosures in this report, 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, www.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.

Contact Information

  • Bannerman Resources Limited
    Perth, Western Australia
    Len Jubber, Chief Executive Officer
    +61 (0)8 9381 1436
    info@bannermanresources.com
    or
    Bannerman Resources Limited
    Perth, Western Australia
    Peter Kerr, Chief Financial Officer
    +61 (0)8 9381 1436
    or
    Bannerman Resources Limited
    Toronto, Ontario, Canada
    Ann Gibbs, Investor Relations
    (416) 388-7247
    ann@bannermanresources.com