Bannerman completed a DFS and Environmental and Social Impact Assessment (“ESIA”) on the Etango project in 2012. The respective studies, as announced to the market on 10 April 2012, confirmed the technical, economic and environmental viability of the project at long term term uranium prices as stated below.
Key outcomes from the DFS, as announced to the market on 10 April 2012, are as follows:
- JORC (2004) and NI 43-101 compliant Ore Reserves totalling 279.6 million tonnes at an average grade of 194ppm U3O8 for 119.3 Mlbs of contained U3O8;
- Production of 7-9 Mlbs U3O8 per year for the first five years and 6-8 Mlbs U3O8 per year thereafter, based on an average processing throughput of 20Mt per annum and an average metallurgical recovery rate of 86.9%, which would rank Etango as a global top 10 uranium only mine;
- Cash operating costs of US$41/lb U3O8 in the first 5 years and US$46/lb U3O8 over the life of mine;
- At a uranium price of US$75/lb U3O8, the Etango Project generates operating cashflow of US$2.7 billion before capital and tax, and free cashflow of US$923 million after capital and tax, based on 104Mlbs U3O8 life of mine production;
- Pre-production capital cost of US$870 million; and
- Minimum mine life of 16 years, with further extensions possible through the conversion of existing inferred resources.
All material assumptions detailed here and underpinning the production target and forecast financial information in the DFS (as previously announced on 10 April 2012 and reported on 30 January 2014 in compliance with Listing Rule 5.16 and 5.17) continue to apply and have not materially changed.
The flyover video presents a detailed flow through analysis of the Etango project’s construction, production and post-production lifelines, as well as the positive effects that Bannerman’s presence in Namibia will provide.