Bannerman's Etango-8 project in Namibia ripe for investors


Bannerman Energy managing director and chief executive officer Brandon Munro said the company is moving on to start work designed to culminate in a targeted final investment decision on Etango-8 during the second half of this calendar year. 

The final investment decision is when a company approaches potential investors to consider buying shares in a project.

The Australian uranium miner reported a landmark quarter on Jan. 23 about the completion of the Definitive Feasibility Study (DFS) for the 8 million tons per annum (Mtpa) development of its flagship Etango-8 Uranium Project in Namibia. 

The Etango-8 DFS completed in December 2022 confirms the solid technical and economic viability of conventional open pit mining and heap leach processing deposit at 8Mtpa throughput. 

According to the DFS, Etango-8 is a technically robust and highly economical mine project that warrants development.

The Etango-8 development is based on an initial Ore Reserve of 59.9 Mlbs U3O8, compared with Measured and Indicated Resources of approximately 150Mlbs U3O8 and additional Inferred Resources at the Etango deposit and potential satellite pits.

Bannerman says there are opportunities to extend the initial 15-year mine life, either in conjunction with or instead of an expansion to the operating scale. 

In addition, Banners said parallel contract offtake and project finance workstreams for Etango-8 have also commenced. 

Construction of the Etango-8 Project is expected to take about 34 months, with no further exploration drilling planned.

The forecasted pre-production capital expenditure is US$317m (incl. contingency), providing an attractive upfront capital intensity of approx. US$90/lb average annual U3O8 production.

The company spent A$1.6 million on the quarter's exploration and development,  including works on the DFS.

Bannerman’s cash balance on 31 December 2022 was A$47.6 million, compared to A$49,6m on 30 September 2022.

The company has no debt (other than typical creditor balances) or convertible instruments. 

Bannerman submitted the Etango mining licence application to the mines ministry in August 2022. 

The company says it will work with the mines ministry on getting the licence during the second quarter of 2023.

 “The underlying quality of the Etango-8 DFS is a testament to the hard work and skillset of the broader Bannerman internal and consultant team that worked on it. These activities are set against a backdrop in which global uranium market fundamentals continue to gain momentum,” Munro said. 

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