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Bannerman Resources has completed scoping study for an 8Mtpa development of its flagship Etango Uranium Project in Namibia.
Brandon Munro, Bannerman’s Chief Executive Officer said the Etango-8 scoping study represents successful culmination work.
“Last year we commenced a review of various project scaling opportunities that might exist for the Etango Project.
“Developing the world-class Etango Project at an initial 8Mtpa throughput offers significant advantages,” Munro.
He said the project sharply reduces the upfront capital and funding hurdle compared to that associated with the original 20Mtpa Etango development evaluated in the DFS in 2012, and the DFS Optimisation Study in 2015.
“It also enables us to predominantly mine shallower, higher-grade ore, which significantly reduces stripping and lifts the average feed grade to the processing facility. The combined result is that the upfront capital intensity of the Etango Project per pound of annual production capacity has fallen materially whilst maintaining robust project economics.”
Munro said the Etango-8 Project is expected to deliver over 3.5Mlbs U3O8 per annum over an initial operating life of more than 14 years. He said though forecast may be a reduced scale compared with the original Etango, but it is still a world-class uranium project and amongst the largest development projects in the sector.
“With a post-tax IRR north of 20 percent, the Etango-8 Project delivers attractive projected investment returns on a lower initial capital, funding and development risk profile.”
Meanwhile the Etango-8 Project provides a reduced scale of production entry, it does so without removing the option of subsequent expansion, including to the originally envisaged 20Mtpa Etango scale.
“In short, the scalability of the world class Etango resource remains robust even with a more modular approach to development of the project.”
