Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

January 28, 2011 05:31 ET

Bannerman Resources Quarterly Activities Report for Period Ending December 2010

PERTH, AUSTRALIA--(Marketwire - Jan. 28, 2011) - Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") is pleased to announce highlights from the Company's Quarterly Report. The complete report is available on the company website at www.bannermanresources.com and on SEDAR (www.sedar.com).

During the December 2010 quarter, Bannerman Resources Limited (TSX:BAN)(ASX:BMN)(NSX:BMN) ("Bannerman" or the "Company") produced a comprehensive update to the feasibility study on its 80%-owned Etango Project in Namibia, one of the world's largest undeveloped uranium projects, and successfully completed a A$15 million equity capital raising primarily to a range of key existing and new institutional investors. Bannerman is now well positioned to aggressively pursue development of Etango, one of the world's largest undeveloped uranium projects, and to grow its mineral resource base through exploration activities on its highly prospective landholdings in the vicinity of the Etango Project. Given the scale of Etango, Bannerman offers shareholders substantial investment exposure to the rapidly improving fundamentals of the uranium industry.

HIGHLIGHTS

  • Resource expansion - Measured and Indicated resources increased 5% to 149Mlbs U3O8 and Inferred resources increased more than 200% to 64Mlbs U3O8.
  • Etango Project feasibility – The study update indicates average annual production of 5-7Mlbs U3O8 per year over a +20 year mine life at an estimated average life-of-mine cash cost of US$42/lb
    • A simple heap leaching processing flowsheet has been selected, featuring rapid and uniform leaching across the deposit, low acid consumption and consistently high (+90%) laboratory uranium recoveries
    • Capital costs of US$638 million, before mining fleet and working capital but including a US$60 million accuracy provision and an allowance for the proportional cost of constructing a water desalination plant and associated piping infrastructure.
  • Exploration upside - Exploration drilling activities in the northern area of the Etango licence area are planned for the March 2011 quarter. Focus areas include Rössingberg, Cheetah and Ombepo where radon cup and subsequent ground radiometric surveys last year identified key target anomalies.
  • Funding secured – Completion of the A$15 million share placement financing increasing cash reserves at quarter end to A$22.7 million (30 September 2010: A$12.1 million). This financing allows the Company to aggressively pursue development of the Etango Project.
  • Uranium Market – The uranium spot price continues its recent upward trend and is now at US$70/lb U3O8 compared with US$47.50/lb U3O8 at the end of the September 2010 quarter.
  • Key objectives for 2011 – Bannerman's key business objectives for 2011 are to complete a definitive feasibility study on the Etango Project, to test a range of Bannerman's prospective regional exploration targets, to secure a development partner and to obtain the grant of the Etango mining licence.

Bannerman's CEO, Len Jubber, said: "Bannerman is extremely well positioned to pursue development of the Etango Project, with the focus in early 2011 on increasing the existing 60% utilisation of the mineral resource base, examining various throughput and materials handling opportunities to reduce operating costs, and the commencement of drilling on promising exploration targets near to the existing project location".

Len Jubber, Chief Executive Officer
28 January 2010

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 the Company's website at www.bannermanresources.com.

Technical Disclosures

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, 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 report relating to the geology and exploration results of the projects owned by Bannerman Resources Ltd is based on information compiled by Mr Kieron Munro, Head of Geology of Bannerman and a full time consultant to the Company. 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 Canadian National Instrument 43-101. Mr Munro consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report relating to the Mineral Resources of the Etango Project is based on a resource estimate completed by Mr Neil Inwood, and the information in this report relating to the Mineral Resources of the Ondjamba and Hyena deposits is based on a resource estimate completed by Mr Neil Inwood and Mr Steve Le Brun. Both Mr Inwood and Mr Le Brun are full time employees of Coffey Mining Pty Ltd. Each of Messrs. Inwood and Le Brun 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 Le Brun consent to the inclusion in this report of the matters based on their 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
    or
    Namibian Media
    Brandon Munro
    GM, Corporate Development
    Windhoek, Namibia
    +264 61 226 621