Bannerman Resources stocks have risen after the Perth-based explorer released a study it says confirmed its Namibian uranium project as one of the world’s largest uranium-only deposits.
Bannerman today released the results of a definitive feasibility study for its Etango project in Namibia, which put a cash cost of $US870 million on the mine, with a minimum open pit mine life of 16 years.
The study supports building an operation that would produce between 7 million and 9 million pounds a year of U3O8 uranium for the first five years, ramping up to 6 million to 8 million pounds annually,
Bannerman said the study indicated it could generate free cashflow of $US923 million after capital and tax from Etango.
Bannerman said it had commenced a drilling program to add new resources to Etango and expand the mine life beyond 20 years.
By close of trade today Bannerman shares had risen nearly 5 per cent, trading at 21.5 cents.
Also today, Bannerman announced it had sold a minority stake in the project, raising $3.9 million.
Namibia’s state-owned mining company, Epangelo Mining Co, will take a 5 per cent stake in Bannerman’s local subsidiary, and holds an option to take a further 5 per cent interest in the project, Bannerman said.
“Completion of the DFS and reaching agreement for Epangelo’s involvement in the Etango uranium project are significant milestones,” chairman David Smith said.
“The number of technically viable, globally significant uranium projects is small, and there is an emerging consensus that uranium prices will need to rise substantially in order to incentivise new supply.
“The involvement of Epangelo as a key partner in the Etango project designates the start of a new period of advancing the Etango project along its development pathway.”
