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 Resources has announced a moderate increase in the preproduction capital forecast for the Etango-8 project. 

This update follows the completion of the front-end engineering design (FEED) and control budget estimate (CBE) processes.

The completion of FEED and the processes has refined the outcomes of the 2022 definitive feasibility study (DFS), enhancing accuracy and recency to key cost estimates. As a result, the control budget estimate processes preproduction capital forecast has risen by $36-million, or 11.3%, from the DFS estimate, to $353.5-million. The increase is driven by design changes and impacts of inflation.

“The FEED work has confirmed the high quality of the technical evaluation and design, as detailed in the December 2022 DFS,” CEO Gavin Chamberlain has said.

Finalising the CBE demonstrates the robustness of the DFS cost estimates, evidenced by the lack of significant increases in forecast construction or operating costs, he adds.

The moderate increase in forecast preproduction capital is attributed to design enhancements that deliver cost efficiencies and reduce operating risks.

The CBE continues to apply the total DFS contingency of $27.3-million.

Early-works construction of the access road and water pipelines is under way and is expected to be completed in July.  

The company is continuing with strategic finance and offtake marketing workstreams.

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.