Bannerman Energy Ltd has announced the completion of a scoping study that evaluated future higher throughput and operating life cases for its flagship Etango Uranium Project in the Erongo Region.
Bannerman said it remains fully committed to the timely development of the Etango project. The scoping study evaluation of the Etango projects was undertaken to demonstrate the potential technical and economic viability of subsequent expansion, the company said. The company expects the development of the project to cost US$320 million
Bannerman Chief Executive Officer, Gavin Chamberlain, said: “Developing the world-class Etango Project at an initial 8 Mtpa throughput scale is our core focus. We undertook the Etango scoping study in order to demonstrate the ready technical and financial viability of expanding or extending our base case Etango operation following its successful construction and ramp-up.”
He that as evidenced by the announced outcomes, the scoping study has categorically demonstrated this further growth optionality. In short, the long-term scalability of the world-class Etango resource remains highly robust under the base case Etango approach to initial project development. The study found that mine and plant throughput expanded to 16 million tonnes per pound with a Life of Mine of 16 years.
Bannerman Executive Chairman, Brandon Munro, added that was delighted that the company has more formally demonstrated the longer-term optionality delivered by our large-scale Etango uranium resource.
“While the XP and XT cases are readily viable at our base case Etango-8 DFS price assumption of US$65 per pound, their economics are clearly supercharged in higher price scenarios.”
Munro said the scoping study emphatically is evident that significant underlying value residing in Etango’s huge in-ground leverage to, and scalability with, higher uranium price outlooks.
“The ability to enact either the XP or XT plans, post-delivery of the initial Etango-8 development, affords Bannerman substantial real option value across a range of long-term uranium price outcomes,” said Munro.
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