AMN - NAMIBIA: Etango prospecting licence renewed

Bannerman Resources has had its Exclusive Prospecting Licence 3345 renewed by the Namibian Ministry of Mines and Energy until April 25, 2019. The Etango Uranium Project is situated on the licence, which is in the Erongo region of Namibia, one of the world’s largest and most established uranium exporters.

Etango is close to all necessary infrastructure and near to Rio Tinto’s Rössing uranium mine, Paladin Energy’s Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

A definitive feasibility study (DFS) completed in 2012 confirmed the technical, environmental and financial viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large-scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds of U3O8 per year for the first five years and 6-8 million pounds per year thereafter.

The current mine life of 16 years has significant expansion potential through the conversion of existing inferred resources as well as the deposit being open at depth.

Bannerman’s CEO Brandon Munro said, “The June quarter has involved a period of consolidation after the successful completion of the demonstration plant test work last quarter.

“We have progressed the DFS update whilst utilising funds conservatively to ensure our cash balance gives us longevity in the context of continuing low uranium prices.”

He said that while the uranium market remained challenging, forward demand continued to strengthen. Recently two more Japanese reactors had been re-started, with India to build 10 new reactors.

Last month Bannerman completed the Namibian Partner Transaction, which sees One Economy Foundation become a 5% loan-carried shareholder in the Etango project. The transaction fulfils an emerging industry-wide requirement for a minimum of 5% Namibian ownership.

Brandon Munro said, “The detailed process undertaken highlighted the One Economy Foundation as an ideal partner. In addition to social programs that closely align with Bannerman’s corporate social responsibility vision, the One Economy Foundation’s board and management demonstrate exceptional leadership across all facets of the Namibian economy.”

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