Name of the Project
Etango-8 uranium project.

Location
Erongo region, about 30 km east-south-east of Swakopmund, in Namibia.

Project Owner/s
Bannerman Energy, through its 95%-owned subsidiary Bannerman Mining Resources. The remaining 5% is owned by Namibian charitable body One Economy Foundation.

Project Description
The Etango deposit will be mined as a conventional truck-and-shovel openpit operation through contract mining over an initial mine life of 15 years.

Maximum mining rates are estimated at 27-million tonnes a year, with average ore mined of about 7.6-million tonnes a year at a life-of-mine average stripping ratio of 2.22.

Average production is estimated at 3.5-million pounds a year of uranium, enough to power up to eight large nuclear reactors.

Total production is estimated at 52.6-million pounds of uranium oxide.

Potential Job Creation
The project will create about 760 Namibian jobs and a multiplier effect of up to 5 000 indirect jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $209-million and an internal rate of return of 17%, with a payback of 4.1 years.

Capital Expenditure
$353.5-million.

Planned Start/End Date
Not stated.

Latest Developments
Bannerman Energy announced a placement to raise A$85-million for the continued development of its Etango-8 project on June 28.

The two-tranche placement comprises 25.8-million new fully paid ordinary shares to new and existing institutional and sophisticated investors at an issue price of A$3.30 each. Upon completion of the placement, Bannerman will have about A$100-million in cash reserves.

Bannerman will use the funds raised for detailed design work and early works construction, as well as to advance further works, including the placement and manufacturing of selected long-lead items, product marketing and project financing activities.

These activities are all directed towards advancing Etango to a targeted positive final investment decision during the second half of the year.

Key Contracts, Suppliers and Consultants
Wood plc (study lead – process plant design and related infrastructure, plant capital and operating cost estimates); Qubeka Mining Consultants (geology review, mining reserve estimate, mine planning and mining cost estimates); Snowden Optiro (mineral resource estimate); Creo Engineering Solutions (engineering support for Bannerman owner’s team); MineTechnics (openpit geotechnical parameters); Lund Consulting Engineers (water supply infrastructure); Addiza Energy Solutions (external electrical supply infrastructure); A.Speiser Environmental Consultants (environmental impact assessments); Namisun Environmental Projects & Developments (conceptual mine closure plan).

Contact Details for Project Information
Bannerman Energy, tel +61 8 9381 1436 or email info@bmnenergy.com.