Bannerman Resources Limited
TSX : BAN
ASX : BMN

Bannerman Resources Limited

April 28, 2011 05:00 ET

Bannerman Resources-Quarterly Activities Report-For the Period Ended 31 March 2011

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

During the March 2011 quarter, Bannerman completed a project improvement review of the December 2010 Preliminary Feasibility Study Update ("PFS Update") leading to a number of potential project improvements and cost reductions, commenced the Definitive Feasibility Study ("DFS"), and reported encouraging exploration drilling results on its Etango Project licence.

HIGHLIGHTS

  • Project improvement – A review of the Etango Project PFS Update involving in-house and external technical personnel has identified opportunities to enhance the Project economics, incorporating potential operating cost reductions of up to US$4/lb U3O8 (thereby potentially reducing estimated operating costs to approximately US$38/lb) and providing a robust foundation for commencement of the DFS.
  • Commencement of DFS – Bannerman at the end of the quarter appointed its DFS engineering consultants and commenced the DFS work program.
  • Metallurgical testwork – Ongoing laboratory column tests have continued to enhance the understanding of the relationship between reagent consumption and metallurgical recoveries. Preliminary results indicate that additional oxidants may not be required to effect efficient leaching, further highlighting the favourable mineralogy of the deposit.
  • Regional exploration – As reported in the quarter, Bannerman obtained high grade surface rock chip samples at the Cheetah Prospect during an initial mapping and ground geophysics program. Follow-up RC drilling at Cheetah returned chemical assay intersections of up to 10 metres at 339ppm U3O8.
  • Renewal of exploration licences – Bannerman has received statutory two year renewals from the Namibian Ministry of Mines and Energy for its Etango and Swakop River exploration licences, without any reduction in area.
  • Cash position – Bannerman's cash reserves at 31 March 2011 totalled A$18.7 million.
  • Key objectives for 2011 – The recent natural disasters and consequential issues at the Fukushima Daiichi nuclear power facility in Japan have resulted in short term weakness in the uranium spot price and uranium equities prices. Bannerman is assessing the effect of these events on its business plan for 2011. However, based on Bannerman's confidence that the future of nuclear power is assured because of nuclear power's clean base load generation capacity, Bannerman will continue to pursue its key business objectives while carefully managing its expenditure rates. Bannerman's plans for 2011 are to progress the Etango Project DFS, test prospective regional exploration targets, secure a development partner and obtain the grant of the Etango mining licence.

Bannerman's CEO, Len Jubber, said: "Bannerman is at a very significant stage of development – the Company is commencing a DFS on a world class uranium resource and has identified a number of opportunities to enhance the economics of the Project. These areas will be the immediate focus of our Project team."

Len Jubber, Chief Executive Officer

28 April 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 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, a 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.

Contact Information

  • Bannerman Resources Limited
    Len Jubber, Chief Executive Officer
    Perth, Western Australia
    +61 (0)8 9381 1436
    admin@bannermanresources.com.au

    Bannerman Resources Limited
    Peter Kerr, Chief Financial Officer
    Perth, Western Australia
    +61 (0)8 9381 1436

    Bannerman Resources Limited
    Tim Haughan, Investor Relations Manager
    Perth, Western Australia
    +61 (0)8 9381 1436

    Bannerman Resources Limited
    Ann Gibbs, Investor Relations
    Toronto, Ontario, Canada
    +1 416 388 7247
    ann@bannermanresources.com
    www.bannermanresources.com

    Australasian Media
    David Tasker
    Professional Public Relations
    +61 (0)433 112 936
    david.tasker@ppr.com.au

    Namibian Media
    Brandon Munro
    GM, Corporate Development
    Windhoek, Namibia
    +264 61 226 621