Channel_Dividing_Onkelo_&_Oshiveli_small_opt[1]Bannerman completed the DFS Optimisation Study (OS) in November 2015. The OS focussed primarily on the geology and mining aspects of the project and incorporated an updated Mineral Resource model that simulates the selectivity associated with the established process of radiometric truck scanning in uranium mining. A relatively minor amount of additional drilling was also included in the model. Capital costs and operating costs were updated to ensure that these estimates remained current and reflect the prevailing economic climate. The mine plan was updated to incorporate the aforementioned changes and included updated pit optimisations, pit designs, geotechnical review and mine production schedules employing variable cut-off grade policies.

Key outcomes from the OS, as announced to the market on 11 November 2015, are as follows:

  • JORC and NI 43-101 compliant Ore Reserves totalling 303.3 million tonnes at an average grade of 195ppm U3O8 for 130.1 Mlbs of contained U3O8;
  • Average annual production of 7.2Mlbs U3O8 over an initial 15.7 year open pit mine life and 9.2Mlbs U3O8 per annum over the first five full production years;
  • Average life-of-mine cash operating costs of US$38/lb U3O8 and S$33/lb U3O8 over the first five full production years;
  • Pre-production capital of US$793M including mining fleet;
  • At a uranium price of US$75/lb U3O8, the Etango project generates operating cash flow of US$3.7B before capital and tax, and free cash flow of US$1.6B after capital and tax;
  • Rapid payback from first production (4.4 years) and initial mine life to payback ratio of 3.6 times.

pit pictureAll material assumptions and technical parameters underpinning Mineral Resource Estimates, Ore Reserve Estimates, production targets and forecast financial information in the OS (as previously announced on November 11, 2015 in compliance with Listing Rule 5.16 and 5.17) continue to apply and have not materially changed.

pdf_icon_16pxOptimisation Study Report

pdf_icon_16pxNI-43-101 Technical Report