HomeEnergyBannerman Energy announces results of Etango-8 PFS

Bannerman Energy announces results of Etango-8 PFS

Bannerman Energy has announced the results from the PFS completed on its 95%-owned Etango-8 Uranium Project in Namibia.

Commenting on the Etango-8 PFS results, Bannerman CEO, Brandon Munro, said:

“I am extremely pleased with the outcomes of the Etango-8 PFS. The underlying robustness of this streamlined development approach to the world-class Etango resource has now been confirmed to a PFS level of accuracy.

“We now look forward to the completion of a DFS for Etango-8 in the September 2022 quarter.  This process will again benefit from the fact that Etango has already been the subject of a definitive level of feasibility study, at a larger scale, in recent years.”

Key outcomes

  • Confirms strong technical and economic viability of conventional open pit mining and heap leach processing of the world-class Etango deposit at 8 Mtpa throughput
  • Informed by vast body of previous technical work with extensive resource drilling, geotechnical, metallurgical and environmental work already complete
  • Heap leach process route has also been comprehensively de-risked via operation of the Etango Heap Leach Demonstration Plant
  • Project rigour further bolstered through PFS with inclusion of dual pit ramps in northern and central pits, detailed plant design and higher accuracy estimation
  • Maiden Etango-8 Ore Reserve declaration of 117.6 Mt at 232 ppm U3O8 for 60.3 Mlbs U3O8
  • LOM production of 52.9 Mlbs U3O8 over 15 years with annual average production of 3.5 Mlbs U3O8
  • Average final product cash operating cost of US$39.5/lb U3O8
  • Forecast pre-production capital expenditure of US$274 million, delivering an attractive upfront capital intensity of approx. US$78/lb average annual U3O8 production
  • Attractive projected economics at US$65/lb: post-tax NPV8% of US$222M, post-tax IRR of 20.3% and post-tax payback of 3.8 years
  • Forecast net project cashflow of US$642 million
  • Further upside potential from future life extension and/or scale-up expansion
  • Long-term scalability of Etango Project confirmed by previous definitive level studies; provides strong optionality and leverage to upside-case uranium market
  • Bannerman Board has approved commencement of a DFS with completion targeted for 3Q CY2022; expected cost approx. A$4 million