Name of the Project
Etango-8 uranium project.

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

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

Project Description
In December 2022, a definitive feasibility study was completed on the proposed Etango-8 project, confirming to a definitive level the strong technical and economic viability of conventional openpit mining and heap-leach processing of the Etango deposit as an eight-million-tonne-a-year throughput operation – for average output of 3.5-million pounds a year of triuranium octoxide (U₃O₈).

In March 2024, a scoping study showed the capacity to increase production to 6.7-million pounds a year of U₃O₈.

The project has an estimated mine life of more than 15 years, with total production estimated at 52.6-million pounds of U₃O₈.

Meanwhile, two future-phase development options have been proposed: 

• an expansion of mine and plant throughput to 16-million tonnes a year – Etango-XP; and 
• a life-of-mine extension with mine and plant throughput maintained at eight-million tonnes a year – Etango-XT.

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 estimated after-tax net present value, at an 8% discount rate, of $390-million and an internal rate of return of 21.1%.

Capital Expenditure
Preproduction capital expenditure is estimated at $353.5-millon.

Planned Start/End Date
A final investment decision (FID) is targeted in 2025.

Latest Developments
Bannerman Energy has received firm commitments for a single tranche placement of about 26.6-million new fully paid ordinary shares to new and existing institutional and sophisticated investors at an issue price of A$3.20 apiece to raise gross proceeds of about A$85-million.

The proceeds will, along with existing cash of about A$55-million, be used to fund construction activities, infrastructure costs and general working capital as the company advances the Etango project towards a positive FID.

Bannerman plans to spend about A$64-million on construction activities at the mine, including earthworks and design, as well as a further A$40-million for infrastructure costs pertaining to construction, water and power.

The balance of A$36-million will be used for general working capital and the costs of the placement.

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, mineral 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.