Proactiveinvestors Australia Bannerman Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Bannerman Resources Ltd RSS feed en Tue, 18 Jun 2019 02:56:11 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Bannerman Resources renews exclusive prospecting licence at Etango Uranium Project in Namibia ]]> https://www.proactiveinvestors.com.au/companies/news/220467/bannerman-resources-renews-exclusive-prospecting-licence-at-etango-uranium-project-in-namibia-220467.html Bannerman Resources Limited (ASX:BMN) has obtained a renewal of its exclusive prospecting licence by the Namibian Ministry of Mines and Energy to explore potential satellite deposit targets at its Etango Uranium Project.

The prospecting renewal is valid until April 25, 2021, and adjoins the Etango project area which is covered by a mineral deposit retention licence (MDRL).

READ: Bannerman Resources defines satellite deposit potential in drilling at Etango Uranium Project

Bannerman’s chief executive officer Brandon Munro said: “We are grateful for the continued support Bannerman receives from the Namibian Ministry of Mines and Energy, who have processed the renewal of EPL3345 efficiently and promptly.”

As required by the Minerals (Prospect and Mining) Act of Namibia, Bannerman reduced the licence area by 25%.

The MDRL covers 7,295 hectares and includes the Etango ore body, two satellite deposits at Hyena and Ondjamba and all planned mine infrastructure.

READ: Bannerman Resources highlights positive uranium industry outlook as it updates DFS

On February 28, 2019, reconnaissance drilling within the prospecting licence area indicated additional satellite feed potential from the Ombepo target, 7 kilometres from the proposed Etango primary crusher.

A total of eight reverse circulation (RC) drill holes were drilled for 973 metres, testing the Ombepo and Rossingberg targets north of Etango.

Four drill holes for 575 metres were drilled at the Ombepo prospect and four drill holes for 398 metres were drilled at Rossingberg.

Highlighted results included:

2 meters at 452 ppm uranium from 70 metres;

13 metres at 203 ppm from 146 metres, including 2 metres at 401 ppm from 147 metres;

19 metres at 203 ppm from 140 metres, including 5 metres at 372 ppm from 153 metres; and

11 metres at 238 ppm from 153 metres.

Both targets have been retained within the renewed licence area.

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Fri, 17 May 2019 11:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220467/bannerman-resources-renews-exclusive-prospecting-licence-at-etango-uranium-project-in-namibia-220467.html
<![CDATA[News - Bannerman Resources responds to ASX query on price and volume increase ]]> https://www.proactiveinvestors.com.au/companies/news/216606/bannerman-resources-responds-to-asx-query-on-price-and-volume-increase-216606.html Bannerman Resources Ltd (ASX:BMN) received a query from the ASX today related to the company’s shares rising from 3.9 cents at the close of trading on Monday, March 11 to a high of 5 cents today.

The ASX also noted the significant increase in the volume of Bannerman securities traded over the last few days.

Bannerman responded to the query explaining that it was not aware of any information that had not been released to the market which, if known, could be an explanation for recent trading in the securities of the company.

READ: Bannerman Resources defines satellite deposit potential in drilling at Etango Uranium Project

However, the company noted that market focus on the uranium sector may be increasing given the proximity of a recommendation by the United States Department of Commerce regarding the national security investigation of uranium imports under Section 232 of the Trade Expansion Act of 1962.

The Department of Commerce is required to make its recommendations to the Trump Administration by April 14, 2019.

Accordingly, Bannerman stated that the recent trading in its securities could be explained by more general factors affecting the uranium market, rather than factors specific to Bannerman.

READ: Bannerman Resources highlights positive uranium industry outlook as it updates DFS ]]>
Mon, 18 Mar 2019 17:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216606/bannerman-resources-responds-to-asx-query-on-price-and-volume-increase-216606.html
<![CDATA[News - Bannerman Resources defines satellite deposit potential in drilling at Etango Uranium Project ]]> https://www.proactiveinvestors.com.au/companies/news/215473/bannerman-resources-defines-satellite-deposit-potential-in-drilling-at-etango-uranium-project-215473.html Bannerman Resources Limited (ASX:BMN) has completed reconnaissance drilling of the Ombepo and Rössingberg targets at its Etango Uranium Project in Namibia.

The results from Ombepo have indicated thick zones of Etango-style uranium mineralisation with the potential for higher-grade blocks, confirming the possibility for a satellite feed for Etango.

 

Drilling comprised eight reverse circulation (RC) holes for 973 metres, of which three at Ombepo intersected uranium mineralisation.

The best intersections include:

2 metres at 452 ppm uranium from 70 metres and 13 metres at 203 ppm from 146 metres, including 2 metres at 401 ppm from 147 metres;

19 metres at 203 ppm from 140 metres, including 5 metres at 372 ppm from 153 metres; and

11 metres at 238 ppm from 153 metres.

READ: Bannerman Resources strengthens Etango development as uranium price set to recover

Bannerman chief executive officer Brandon Munro said the company was encouraged by the potential for resources at the Ombepo target, 7 kilometres from the proposed Etango primary crusher.

Munro said: “The reconnaissance program touched the edge of the target and showed broad zones of mineralisation of a similar tenor to Etango, albeit at slightly deeper levels.

“Particularly pleasing was the higher-grade sub-intervals which deserve further attention to see if these zones broaden.

“A satellite deposit could add mine life to the large-scale Etango deposit, while taking advantage of lower economic thresholds owing to proposed mine infrastructure.”

READ: Bannerman Resources highlights positive uranium industry outlook as it updates DFS

Both the Ombepo and Rössingberg targets are north of Etango’s main deposit and both have coincident radon anomalies and surface mineralisation.

Drilling at Ombepo aimed to test the down-dip continuation of uriniferous alaskite bodies identified at surface.

The objective of reconnaissance work at Rössingberg was ti test the strike extent of mineralisation intersected during Bannerman’s 2008 drilling program at the prospect.

All four drill holes at Rössingberg intersected less-mineralised alaskite bodies with grades mostly below 100 ppm.

READ: Bannerman Resources confident of 2019 uranium bull market amid spot price volatility

Bannerman’s 95%-owned Etango project is near Rio Tinto plc's (LON:RIO) Rössing Uranium mine, the Langer Heinrich Uranium Mine owned by Paladin Energy Ltd (ASX:PDN) and CGNPC’s Husab Uranium Mine.

A definitive feasibility study at Etango has confirmed the viability of a large open pit and heap leach operation with expected annual production of 7-9 million pounds of yellow cake for the first five years and 6-8 million pounds per year thereafter.

The company undertook a large-scale heap leach demonstration program between 2015 and 2017 to provide further assurance to financing parties, generate process information for the engineering design phase and enhance internal capability.

 

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Wed, 27 Feb 2019 22:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215473/bannerman-resources-defines-satellite-deposit-potential-in-drilling-at-etango-uranium-project-215473.html
<![CDATA[News - Bannerman Resources highlights positive uranium industry outlook as it updates DFS ]]> https://www.proactiveinvestors.com.au/companies/news/213560/bannerman-resources-highlights-positive-uranium-industry-outlook-as-it-updates-dfs-213560.html Bannerman Resources Ltd (ASX:BMN) (OTCMKTS:BNNLF) expects RC drilling results back from a campaign near its proposed Etango uranium processing plant in Namibia this quarter as the company continues to progress an update to the definitive feasibility study for its flagship project.

The company that regularly has its share price track with the uranium price, posted its quarterly reports to market today, outlining a number of positive trends it expects will influence uranium prices this year.

BIG PICTURE: Bannerman Resources strengthens Etango development as uranium price set to recover

Bannerman managing director & CEO Brandon Munro highlighted key strengths in the company’s quarterly activities report.

Among them was the company’s strong cash position, with Bannerman holding $7.4 million in cash at December 31.

During the fiscal quarter, the company raised funds from equity issues after its chairman exercised 3.9 million options in the period to contribute $172,612 in funds to Bannerman’s cash balance.

Net operating outflows in the quarter were $511,000.

The company tipped expected cash outflows of $690,000 in the March quarter as it continues to progress a definitive feasibility study for its 95%-owned Etango Uranium Project.

Munro reported: “We have maintained our fiscal discipline whilst undertaking high value-add activities at the Etango project, such as testing targets with the potential to be satellite deposits and the ongoing work associated with the DFS update.

“The uranium market has tightened sUBStantially and we are well positioned for further price improvement with an advanced asset and a healthy balance sheet.”

 

DFS update program

The company’s update to its DFS is an important work program being achieved in the context of tightening global supply for uranium and improved pricing.

Writing on behalf of the company, Munro said: “During the quarter, the company’s ongoing DFS update work included mine and process schedule optimisation and further refinement of the cost input parameters.

“Qubeka Mining Consultants, a specialist mining engineering firm with deep experience in deposits similar to Etango, was engaged during the quarter to provide specialist input.”

Bannerman has prioritised several optimisation opportunities at Etango and is undertaking studies to assessing how optimisation can be value-accretive through reducing anticipated capital expenditure and operating costs.

Once the optimisation phase is complete, Bannerman has said it expects to finish its DFS update by conducting definitive-level engineering work to incorporate identified project enhancements and update the procurement process.

The company’s original DFS for Etango has confirmed the viability of a large open pit and heap leach operation with expected annual production of 7-9 million pounds of yellowcake for the first five years and 6-8 million pounds per year thereafter.

Bannerman undertook a large-scale heap leach demonstration program between 2015 and 2017 to provide further assurance to financing parties, generate process information for the engineering design phase and enhance internal capability.

Bannerman non-executive chairman Ronnie Bevor told the company’s annual general meeting in the December quarter the company had identified in its processing study an estimated capital cost saving of US$72 million, along with sUBStantial potential operating cost savings.

This would enable a DFS improvement target of plus-US$3 per pound of U3O8, compared to the operating costs of its published 2015 optimisation study.

Bevor had noted Cameco’s (TSE:CCO) MacArthur River and Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich Mine had been put on care and maintenance and Kazakhstan producer KazAtomProm’s (KASE:KZAP) (LON:KAP) (FRA:0ZQ) 20% reduction in forecasted annual production.

The chairman said in November: “The combined effect is forecast to put the uranium market into a deficit in 2019 and this is expected to have a significant impact on uranium prices in the next year as the reduction in supply starts to take effect.”

Bannerman’s RC drilling results from its eight-hole, 973-metre campaign at two areas 10 kilometres from the proposed Etango plant are expected this quarter.

Positive factors for the uranium industry in 2019

Bannerman’s MD-CEO Munro is a lawyer and quantitative economist who is often called on to comment on the state of the uranium market.

He has outlined several expected uranium industry forces in several interviews with Proactive Investors.

Munro spoke to Proactive’s Stocktube video channel in November, saying he saw the sector “behaving very optimistically” for the next six months.

Speaking in the quarterly, Munro highlighted the 25% improvement in the uranium price had achieved since the start of the 2018-19 financial year.

Munro wrote in the quarterly report:

“We anticipate continued improvement in the uranium sector during 2019, driven by several co-incident factors including:

(a) Continued acquisition of uranium by financial investors, such as Yellow Cake PLC, Uranium Participation Corp and Uranium Trading Corp, and direct acquisition of uranium by other investors utilising trader accounts;

(b) Producer purchases of uranium to meet delivery obligations, most notably Cameco Inc;

(c) The resumption of procurement activities once the section 232 trade practices investigation is resolved;

(d) Contraction of available/mobile uranium inventory, through the absorption of producer inventories, continued draw-down of commercial inventories by utilities, reduction in secondary supply sources and reassessment of risk-management policies (ie minimum inventory holdings) as the uranium price recovers;

(e) Policy improvements for the nuclear industry as governments heighten their appreciation for the urgency of climate change action, leading to reactor life extensions in the short term and accelerated reactor build out in the medium term; and

(f) Increasing demand growth, in particular from China, Russia, South Korea and the Middle East promoting further strategic inventory builds, across the nuclear fuel cycle and mine development pathway.”

Bannerman flagged there was a strong outlook for uranium, driven by “supply reductions and secondary buying”.

The U3O8 spot price closed the December quarter at US$28.50 a pound, trading at similar levels this month.

READ: Bannerman Resources confident of 2019 uranium bull market amid spot price volatility

Munro highlighted a number of acquisitions and sell-offs in the uranium space in the December quarter.

Among these were China National Uranium Corporation’s (CNUC) buy-up of a 69% stake in Rössing uranium mine from Rio Tinto.

CNUC is an affiliate of Chinese nuclear giant China National Nuclear Corporation (CNNC), which has the Husab mine 20 kilometres from Etango, where it is ramping up production.

Another expected but delayed trend was the listing of large Kazakhstan-based uranium producer KazAtomProm on the Astana stock exchange AIFC and the London Stock Exchange.

Republic of Kazakhstan sovereign-wealth fund Samruk-Kazyna finally sold down a 15% stake in what had been a wholly-owned vessel for US$451million, valuing KazAtomProm at US$3 billion.

Munro flagged the KazAtomProm initial public offering had “the effect of increasing the visibility of the uranium sector amongst the international financial community”.

KazAtomProm had previously had a positive effect on pricing by announcing a 20% reduction in forecast production.

READ: Bannerman Resources has new sUBStantial shareholder in Tribeca Investment Partners

Another factor influencing the industry more generally is the section 232 trade practices investigation being conducted by the US Department of Commerce.

The department is determining the effects of uranium imports on the national security of the US, in an investigation tipped to influence the international reception to Western companies’ uranium projects.

A public comment period on the matter closed in September 2018, with submissions being evaluated in the December quarter.

 

Top shareholders

Tightly held Bannerman’s top 20 shareholders had 55.72% of the company on October 2.

The company’s two significant shareholders are now its largest shareholder Tribeca Investment Partners Pty Ltd, with an 8.73 stake, and mining mainstay Clive Jones with 7.5%.

Jones is a non-executive director of Bannerman and who has served on many resource and exploration company boards.

He has stayed closely involved with the project since applying for the Etango prospecting licence in 2005.

Tribeca became a significant investor in Bannerman in September after Resource Capital Fund IV L.P. sold down and exited its significant holding in the September quarter.

In October Citicorp Nominees Pty Limited had 11.72% of Bannerman while JP Morgan Nominees Australia Limited had 7.47% and UBS Nominees Pty Ltd 6%.

Today Bannerman had 1,041,587,214 ordinary shares on issue, 40,154,033 performance and share rights and 68,626,800 unlisted share options.

— with Berkay Erkan, Danielle Doporto

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Tue, 29 Jan 2019 20:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213560/bannerman-resources-highlights-positive-uranium-industry-outlook-as-it-updates-dfs-213560.html
<![CDATA[News - Bannerman Resources strengthens Etango development as uranium price set to recover ]]> https://www.proactiveinvestors.com.au/companies/news/209635/bannerman-resources-strengthens-etango-development-as-uranium-price-set-to-recover-209635.html Bannerman Resources Ltd (ASX:BMN) is progressing the updated definitive feasibility study (DFS) for its Etango Uranium Project in Namibia.

The company is confident of a recovery in the uranium price due to supply and production cuts across the world’s biggest yellowcake producers.

Several optimisation opportunities at Etango have been prioritised and studies are assessing the potential of optimisation to be value-accretive through reducing anticipated capital expenditure and operating costs.

Once the optimisation phase is complete, Bannerman will finish the DFS update by conducting definitive-level engineering to incorporate identified project enhancements and update the procurement process.

 

Bannerman chairman Ronnie Bevor said at the company’s annual general meeting that the company was well positioned to benefit from the early stages of a recovery in the uranium sector.

He said: “The uranium sector has benefitted from several significant developments over the last year, precipitated by decade-low prices caused by persistent annual surpluses in the uranium market.”

Bevor noted Cameco’s (TSE:CCO) MacArthur River and Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich Mine, both of which were put on care and maintenance.

He also pointed out KazAtomProm, the world’s largest uranium producer, announcing a 20% reduction in forecast production, Orano’s announced supply reductions in Niger and declining uranium production in the US.

Bevor continued: “The combined effect is forecast to put the uranium market into a deficit in 2019 and this is expected to have a significant impact on uranium prices in the next year as the reduction in supply starts to take effect.”

Source: Cameco, UxC, BMO Research, May 2018

  READ: Bannerman Resources confident of 2019 uranium bull market amid spot price volatility

A definitive feasibility study at Etango has confirmed the viability of a large open pit and heap leach operation with expected annual production of 7-9 million pounds of yellowcake for the first five years and 6-8 million pounds per year thereafter. 

The company undertook a large-scale heap leach demonstration program between 2015 and 2017 to provide further assurance to financing parties, generate process information for the engineering design phase and enhance internal capability.

Bevor said in his address that the company had identified in its processing study an estimated capital cost saving of US$72 million, along with substantial potential operating cost savings.

This would enable a DFS improvement target of plus-US$3 per pound of U3O8, compared to the operating costs published in the 2015 optimisation study.

Etango's heap leach demonstration plant

  READ: Bannerman Resources to test target anomalies near proposed Etango uranium plant

In a market update at the Technology and Low Emission Minerals (TLEM) Conference last week, Argonaut Limited director of metals, mining & energy Matthew Keane said a comeback in uranium was well underway.

Keane detailed the substantial supply-side curtailments in the sector amounting to between 22 and 35 million pounds per annum from 2016-2018.

He noted that 54 reactors were under construction globally and another 148 were planned, all while the world’s three largest uranium producers had cut production.

Sitting at just over US$29 a pound on the morning of his presentation, the uranium price, according to Keane, has the capacity to spike well above US$100 a pound.

Despite the optimism, Keane said that the market was still in a balancing phase and we were yet to see a price recovery in a sector that was driven by catalysts.

Current uranium prices do not incentivise restarts or new production, with Keane noting a price of US$40-45 a pound to incentivise restarts and a price of about US$60 a pound for new production.

 

Speaking at the same conference, Bannerman managing director Brandon Munro outlined the key factors investors needed to look for to catch easy asymmetrical value at the beginning of a boom.

He said the importance of a project’s strategic appeal to sovereign investors and its exposure to non-financial risks, noting that like the battery metals industry, the uranium sector was set to be driven out of its slump by expanding climate change policy.

Munro added: “With supply disruption that finally dislodged the stubborn spot price, growing demand fundamentals, and within … a sector that is absolutely famous for its supply-side volatility, we are seeing sentiment shifting and Bannerman is perfectly positioned as the investment vehicle for that.

“The last time we had a structurally-driven uranium boom was in response to the oil prices – a little bit like the current structurally-driven uranium boom that’s just started will be driven by climate change policy.”

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Tue, 20 Nov 2018 21:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209635/bannerman-resources-strengthens-etango-development-as-uranium-price-set-to-recover-209635.html
<![CDATA[Media files - Bannerman Resources MD discusses uranium markets, as predictions proven correct ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11250/bannerman-resources-md-discusses-uranium-markets-as-predictions-proven-correct-11250.html Tue, 20 Nov 2018 11:23:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11250/bannerman-resources-md-discusses-uranium-markets-as-predictions-proven-correct-11250.html <![CDATA[News - Bannerman Resources confident of 2019 uranium bull market amid spot price volatility ]]> https://www.proactiveinvestors.com.au/companies/news/209162/bannerman-resources-confident-of-2019-uranium-bull-market-amid-spot-price-volatility-209162.html Speaking at the Technology and Low Emission Minerals Conference in Perth, Bannerman chief executive officer Brandon Munro presented his company’s strategy to take advantage of the early stages of a uranium bull market.

He outlined the key factors investors need to look for to catch easy asymmetrical value at the beginning of a boom, noting the importance of a project’s strategic appeal to sovereign investors and its exposure to non-financial risks.

Lawyer-cum-miner Munro pointed out that like the emerging global battery metals industry, the uranium sector is set to be driven out of its slump by expanding climate change policy.

Bannerman’s principal asset is its 95%-owned Etango Uranium Project in Namibia, near Rio Tinto plc’s (LON:RIO) Rössing Mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich mine and CGNPC’s Husab mine.

A definitive feasibility study at Etango has confirmed the viability of a large open pit and heap leach operation at what is one of the world’s largest undeveloped uranium deposits.

 

Munro said that the uranium sector was moving from a decade of surplus into a sharp deficit.

He said: “With supply disruption that finally dislodged the stubborn spot price, growing demand fundamentals, and within … a sector that is absolutely famous for its supply-side volatility, we are seeing sentiment shifting and Bannerman is perfectly positioned as the investment vehicle for that.

“We’ve got the track record; we’ve got the leveraged price; we’ve got strategic appeal – its an advanced asset with low non-financial risks and a leadership team that will certainly deliver.

“You don’t want to pick the right race but pick the wrong horse – I guarantee you that uranium is going to have a fantastic year next year but be very careful that the horse you pick is only exposed to uranium price and not the host of other non-financial risks.”

Source: Cameco, UxC, BMO Research, May 2018

  READ: Bannerman Resources buoyed as uranium investors snap up RCF’s substantial stake

Munro’s confidence in a uranium sector recovery was echoed by Argonaut Limited director of metals, mining & energy research Matthew Keane, who said that a comeback in uranium was well underway.

In a market update at the new energy-focused conference, Keane detailed the substantial supply-side curtailments in the sector, amounting to between 22 and 35 million pounds per annum from 2016-2018.

He noted that 54 reactors were under construction globally and another 148 were planned, all while the world’s three largest uranium producers had cut production.

Sitting at just over $US29 a pound this morning, the uranium price according to Keane has the capacity to spike well above US$100 a pound.

Despite the optimism, Keane said that the market was still in a balancing phase and we were yet to see a price recovery in a sector that was driven by catalysts.

Current uranium prices do not incentivise restarts or new production, with Keane noting a price of US$40-45 a pound to incentivise restarts and a price of about US$60 a pound for new production.

 

Uranium prices are driven by catalysts and not market fundamentals

  Uranium boom driven by climate change policy

Munro believes that the momentum in the sector is comparable to the pre-boom environment in 2006-07.

He said: “All of that demand momentum is creating demand-side pressures that are going to continue up to 2040.

“The last time we had a structurally-driven uranium boom was in response to the oil prices – a little bit like the current structurally-driven uranium boom that’s just started will be driven by climate change policy.”

The volatility of the uranium spot price and its catalytic effect on the market was shared by Patrick Plummer, mining geologist & analyst at TradeTech LLC.

Plummer said: “For many years uranium production remained insulated from the spot market owing to the predominance of long-term contracts.

“Those contracts secured supply over the long-term for end-users, but they also safeguarded the economic viability, and by extension, the sustainability of producers and their various projects.

“Spot prices have become increasingly sentiment-driven and less tied to market fundamentals.”

2018 a turning point

Plummer added that spot price volatility had exacted increasing influence on both purchasing behaviour and production decisions, despite the importance placed on the term market by fuel buyers and end-users.

He said that in respect to purchasing activity, 2018 would likely stand out as a turning point in the uranium market.

“Term buying increased significantly in Q3 with term demand currently at a 5-year high.

“Annual total spot buying is already at an all-time high and we still have around 6 weeks until year-end.  

“In 2016 through 2017, and during the first half of this year, the continued depressed market conditions resulted in production curtailments and mine closures.

“The implementation of cuts will likely have near and long-term consequences, and according to the producers themselves, an impact on future uranium prices.”

 

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Wed, 14 Nov 2018 03:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209162/bannerman-resources-confident-of-2019-uranium-bull-market-amid-spot-price-volatility-209162.html
<![CDATA[News - Bannerman Resources to test target anomalies near proposed Etango uranium plant ]]> https://www.proactiveinvestors.com.au/companies/news/208787/bannerman-resources-to-test-target-anomalies-near-proposed-etango-uranium-plant-208787.html Bannerman Resources Limited (ASX:BMN) will begin a reconnaissance drilling program in late November at prospecting licence EPL3345, north of its Etango Uranium Project in Namibia.

The 9-hole, 1,000-metre program will test two targets within 10 kilometres of the proposed Etango processing plant.

 

Five holes are planned for the Ombepo target and four holes at the Rossingberg target, drilling 600 and 400 metres, respectively.

Both targets have coincident radon anomalies and surface mineralisation.

Results from the drilling are expected in the first quarter of 2019, after which Bannerman will assess the potential value to be gained from defining further resources within economic trucking distance of the proposed plant.

The work program is consistent with Bannerman’s obligations under the prospecting licence which is due for renewal in April next year.

READ: Bannerman Resources buoyed as uranium investors snap up RCF’s substantial stake

Bannerman’s 95%-owned Etango project is near Rio Tinto plc's (LON:RIO) Rössing Uranium mine, the Langer Heinrich Uranium Mine owned by Paladin Energy Ltd (ASX:PDN) and CGNPC’s Husab Uranium Mine.

A definitive feasibility study at Etango has confirmed the viability of a large open pit and heap leach operation with expected annual production of 7-9 million pounds of yellow cake for the first five years and 6-8 million pounds per year thereafter.  

The company undertook a large-scale heap leach demonstration program between 2015 and 2017 to provide further assurance to financing parties, generate process information for the engineering design phase and enhance internal capability.

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Wed, 07 Nov 2018 21:01:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208787/bannerman-resources-to-test-target-anomalies-near-proposed-etango-uranium-plant-208787.html
<![CDATA[Media files - Bannerman Resources well positioned to leverage nuclear sector recovery ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10550/bannerman-resources-well-positioned-to-leverage-nuclear-sector-recovery-10550.html Fri, 21 Sep 2018 14:48:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10550/bannerman-resources-well-positioned-to-leverage-nuclear-sector-recovery-10550.html <![CDATA[News - Bannerman Resources has new substantial shareholder in Tribeca Investment Partners ]]> https://www.proactiveinvestors.com.au/companies/news/205097/bannerman-resources-has-new-substantial-shareholder-in-tribeca-investment-partners-205097.html Bannerman Resources Limited (ASX:BMN) (NSX:BMN) has a new substantial shareholder with Sydney-based Tribeca Investment Partners Pty Ltd now holding an 8.73% stake.

Tribeca reached this status in the uranium explorer and developer by acquiring 90 million shares on-market on September 14, 2018, with a total value of $4.5 million.

READ: Bannerman Resources buoyed as uranium investors snap up RCF’s substantial stake

The acquisition follows substantial shareholder Resource Capital Fund (RCF) selling its entire stake of more than 191 million shares.

Tribeca was one of a number of Australian and offshore institutions involved in picking up RCF’s shares.

Among the institutions to participate were specialist uranium investment funds and existing institutional shareholders.

 

Bannerman’s CEO Brandon Munro said of this participation that it was a strong signal of the health of uranium investor sentiment.

“Completion of this sale (RCF) underscores the high regard in which Bannerman is held by institutional investors and will provide serious strength to Bannerman’s register.”

Further institutional investors welcomed

Chairman Ronnie Beevor said, “Bannerman is very pleased to welcome further institutional investors to its register.

“The Bannerman board and management team will continue to focus on delivering maximum value for all shareholders from its highly endowed and strategically placed Etango Uranium Project.”

Etango Uranium Project is principal asset

Bannerman’s principal asset is its 95%-owned Etango project in Namibia, near Rio Tinto plc’s (LON:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

A definitive feasibility study has confirmed the viability of a large open pit and heap leach operation at one of the world’s largest undeveloped uranium deposits.

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Tue, 18 Sep 2018 16:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205097/bannerman-resources-has-new-substantial-shareholder-in-tribeca-investment-partners-205097.html
<![CDATA[News - Bannerman Resources buoyed as uranium investors snap up RCF’s substantial stake ]]> https://www.proactiveinvestors.com.au/companies/news/204979/bannerman-resources-buoyed-as-uranium-investors-snap-up-rcfs-substantial-stake-204979.html Bannerman Resources Limited’s (ASX:BMN) (NSX:BMN) substantial shareholder Resource Capital Fund (RCF) has sold its entire stake of more than 191 million shares in the uranium explorer and developer.

The purchasers are believed to be a number of Australian and offshore institutions, including significant participation by specialist uranium investment funds and existing institutional shareholders.

READ: Bannerman Resources well-funded to advance its project amid uranium price rise

Chief executive officer Brandon Munro said the scale of the line that had been transacted and the participation by specialist uranium funds were strong signals of the health of uranium investor sentiment.

The sale by Resource Capital Fund IV and Resource Capital Fund VI was effected through a crossing on ASX on Friday, September 14, 2018.

This follows the sale by RCF of more than 93.7 million shares in the period from July 24, 2018, to  August 23, 2018.

Shares increase almost 4% at opening

Shares opened today at 6 cents, up almost 4% on Friday’s close.

Munro said, “Completion of this sale underscores the high regard in which Bannerman is held by institutional investors and will provide serious strength to Bannerman’s register.”

READ: Bannerman Resources in heavily oversubscribed raising as institutions build positions

Bannerman raised eyebrows in June when it tapped onshore institutions for an $8 million capital raising.

The raising, which was believed to be heavily oversubscribed, was at 4.6 cents per share – more than a 50% premium to Bannerman’s 2016 raising.

Munro said the company momentum continued as its share price responded to improved market dynamics following Cameco Corp’s (NYSE:CCJ) McArthur River mine being placed into permanent care and maintenance.

Just as the share price sailed through 7.5 cents, Munro said RCF, which held 28%, started selling on-market.

Through a series of notifications, RCF advised that its shareholding was depleted to 18%.

 

Munro said, “The Bannerman share price was remarkably resilient during the period, generally holding firm around 6 cents despite more than 90 million shares being pushed out in only a month.

“The market will watch keenly for a potential re-rate now that the overhang is removed. 

“Further, the uranium price is up since the selling suppressed the BMN share price and, with BMN’s share price tracking closely to uranium, the company is keen to close that gap.”

Etango is principal asset

Bannerman’s principal asset is its 95%-owned Etango project in Namibia, near Rio Tinto plc’s (LON:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

A definitive feasibility study has confirmed the viability of a large open pit and heap leach operation at one of the world’s largest undeveloped uranium deposits.

“Grateful for RCF’s long-term support”

Bannerman chairman Ronnie Beevor said, “The company is grateful for RCF’s long-term support from the point of its initial investment in Bannerman in 2008.

“Their subsequent investments have provided funding stability to the company during a very difficult period in the uranium sector.

“This enabled the continued progression of the Etango Uranium Project to its current highly advanced, heavily de-risked and development-ready status.

“A key part of this progression, and one directly enabled by the support of RCF, was the construction and operation of the Etango Heap Leach Demonstration Plant between 2014 and 2017.”

The Etango Heap Leach Demonstration Plant in Namibia.

Beevor added, “Bannerman is very pleased to welcome further institutional investors to its register.

“The Bannerman board and management team will continue to focus on delivering maximum value for all shareholders from its highly endowed and strategically placed Etango Uranium Project.”

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Mon, 17 Sep 2018 11:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204979/bannerman-resources-buoyed-as-uranium-investors-snap-up-rcfs-substantial-stake-204979.html
<![CDATA[News - Bannerman Resources well-funded to advance its project amid uranium price rise ]]> https://www.proactiveinvestors.com.au/companies/news/201707/bannerman-resources-well-funded-to-advance-its-project-amid-uranium-price-rise-201707.html Bannerman Resources Limited (ASX:BMN) has reported a strong June quarter during which the company completed an $8 million heavily oversubscribed capital raising.

Bannerman is now well funded to continue the definitive feasibility study (DFS) update on its Etango Project in Namibia.

 

Bannerman chief executive officer Brandon Munro said: “The success of our $8 million capital raising demonstrates institutional investors’ confidence in our Etango Project.

“Bannerman is now well funded and exceptionally well positioned in front of a uranium price recovery being driven by supply side discipline from Cameco Corporation and demand from physical uranium investment funds such as Yellow Cake PLC.”

Uranium sector poised for recovery as Cameco shuts McArthur River indefinitely

The uranium price increased 6% overnight after Canadian producer Cameco said it would shut one of its mines indefinitely.

With an annual production rate of 18 million pounds U3O8 (triuranium octoxide), McArthur River is the largest uranium mine in the world and accounts for more than 10% of global supply

The effect of supply disruptions over the last year could reduce 2018 world uranium supply by more than 20% (35 million pounds) in comparison with 2017.

As a result, the global uranium sector is expected to experience deficits in 2018/2019 after almost a decade of surpluses.

DFS update to continue at Etango

Bannerman is prioritising a number of optimisation opportunities at Etango and will progressively undertake optimisation studies that have the potential to be value-accretive.

Once the optimisation phase is completed, Bannerman will conclude the DFS update by undertaking definitive level engineering to incorporate identified project enhancements and update the procurement process.

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Fri, 27 Jul 2018 16:09:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201707/bannerman-resources-well-funded-to-advance-its-project-amid-uranium-price-rise-201707.html
<![CDATA[Media files - Bannerman Resources' managing director shares expert insights on uranium market ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9618/bannerman-resources-managing-director-shares-expert-insights-on-uranium-market-9618.html Tue, 19 Jun 2018 16:54:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9618/bannerman-resources-managing-director-shares-expert-insights-on-uranium-market-9618.html <![CDATA[News - Bannerman Resources in heavily oversubscribed raising as institutions build positions ]]> https://www.proactiveinvestors.com.au/companies/news/198496/bannerman-resources-in-heavily-oversubscribed-raising-as-institutions-build-positions-198496.html Bannerman Resources Ltd (ASX:BMN; NSX:BMN) continues to be well supported by the investment community, and will now raise $8 million in a heavily oversubscribed placement at 4.6 cents.

Adding interest, the equity raising attracted over a dozen new institutional investors.

Since Brandon Munro was appointed chief executive officer just over two years ago, the institutional component of the Bannerman register has increased to over 11% from 4%.

With this raising, Bannerman has positioned itself to require no further funding until a final investment decision, should current uranium price momentum continue into a sector correction.

This amount enables the company to continue adding NPV to Etango through optimisation initiatives, complete the Definitive Feasibility Study Update (DFS) and proceed to offtake and financing.

Given the perception of being “cum raise” appears to have weighed on Bannerman’s share price for some time, this is a paradigm shift that will serve investors well.

What to look out for from the DFS Update

The DFS Update will incorporate, to a definitive level, improvements to the 2012 DFS that have been identified in the Mining Optimisation Study (2015), Processing Optimisation Study (2017) and Membrane Study (2018).

It will also include additional optimisation initiatives planned to be undertaken over the next 6-12 months.

Uranium price and key catalysts

The uranium price has been nudging higher in recent weeks, and is now around US$24 a pound, or about 15% higher than in mid-April.

READ: Brandon Munro has outlined his key catalysts in his online blog The potential of Etango

The Etango project hosts a resource of 271 million pounds of uranium, and is the largest advanced, unaligned uranium project in the world.

Etango is located in Namibia, a premier uranium jurisdiction, with a +40 year production history.

The country is politically and socially supportive of the sector, is stable and secure with a strong rule of law, with all key infrastructure in place.

Etango is situated near Rio Tinto Ltd's (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd's (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

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Fri, 08 Jun 2018 10:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198496/bannerman-resources-in-heavily-oversubscribed-raising-as-institutions-build-positions-198496.html
<![CDATA[News - Bannerman Resources to lift cash position as uranium market awakens ]]> https://www.proactiveinvestors.com.au/companies/news/198316/bannerman-resources-to-lift-cash-position-as-uranium-market-awakens-198316.html Bannerman Resources Ltd (ASX:BMN) remains focused on the Etango project in Namibia, which hosts a resource of 271 million pounds of uranium.

Etango is the largest advanced, unaligned uranium project in the world.

Bannerman therefore is highly leveraged to the uranium market, which has seen prices edge higher to around US$23 a pound.

To advance the next steps, the company is heading to market with a capital raising, and the ASX has granted a trading halt to prepare.

The halt will remain in place until the opening of trade on Friday 8 June 2018, or earlier if an announcement is made to the market.

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Wed, 06 Jun 2018 10:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198316/bannerman-resources-to-lift-cash-position-as-uranium-market-awakens-198316.html
<![CDATA[News - Bannerman Resources to benefit from cost reductions at Etango ]]> https://www.proactiveinvestors.com.au/companies/news/196511/bannerman-resources-to-benefit-from-cost-reductions-at-etango-196511.html Bannerman Resources Limited (ASX:BMN), like most players in the uranium sector, has had its share of challenges.

However, the fact remains that its Etango Uranium Project is one of the world’s largest undeveloped uranium projects.

It is in Namibia, southern Africa, one of the world’s top five uranium producing nations with substantial mining infrastructure.

It could be argued that Bannerman has flown under the radar over the last 12 months despite having made substantial progress in completing research studies.

Shares jump 10%

Importantly, in an environment of depressed uranium prices, these studies have been aimed at reducing capital and production costs at its Etango project.

As outlined below, the results are impressive and it seems that the market has begun to acknowledge the company’s prospects.

Management did a good job in explaining the relevance and potential impact of its technological progress when delivering its quarterly activities report at the end of April.

This triggered an increase in the company’s share price of more than 10%.

High profile neighbours

There is no doubting the quality of Bannerman’s resource and the reason it has fallen out of favour can simply be put down to industry dynamics.

With large deposits nearby, it is obvious that Etango is in a highly prospective area.

Uranium deposits in close proximity include Rio Tinto’s Rössing mine, Paladin’s Langer Heinrich mine and China General Nuclear Power Corporation’s Husab mine.

Much of the lead-up work completed

Etango is one of the few uranium projects in the world with a completed definitive feasibility study (DFS) and environmental permitting.

Furthermore, the mine is expected to be a top 10 producer once developed.

Based on the DFS, uranium production is expected to be between seven and nine million pounds per year for the first five years.

Production is then expected to be between six and eight million pounds thereafter.

Based on the DFS, Etango is expected to have a minimum mine life of 16 years with significant expansion potential through the conversion of the existing inferred resource, as well as the deposit being open at depth and along strike.

Prospects further enhanced by new technology

With the industry landscape and uranium pricing having changed significantly since the DFS was completed, Bannerman started a processing optimisation study (OS) in 2017.

It aims to incorporate the favourable results obtained in a Heap Leach Demonstration Plant Program, a development that may significantly change the project dynamics.

The layout design of the demonstration plant took advantage of a historical exploration camp and the topography of the area, and the flowsheet resembles the front-end of the processing plant up to the heap leaching stage.

The potential positive impact on project economics was highlighted further in mid-April when Bannerman outlined the cost savings that could be delivered from a membrane study.

This tested the effectiveness of five different membrane types on two different solution streams, both generated from the Etango heap leach demonstration plant.

READ: Bannerman Resources membrane study delivers cost savings to Etango

The results and recommendations from the processing OS will be incorporated into the DFS update.

This will occur in conjunction with definitive level procurement aimed at capturing the broader cost deflation that has occurred in the resources sector since 2012.

Savings from lower acid consumption

The heap leach test work also consistently showed acid consumption averaging 14.4 kilograms per tonne compared to the DFS projection of 17.6 kilograms per tonne.

The scaled-up acid consumption was reduced to a level of 16.8 kg/tonne.

Further detailed engineering work will be done in the DFS update to accurately reflect the operating savings achieved with this lower acid consumption.

This will also incorporate the other opportunities identified to reduce acid costs such as membrane acid recovery.

Management is targeting further operating cost improvements and it anticipates savings of more than US$3 per pound across the life of mine.

At forefront of global development pipeline

Management said that the continued technical enhancement since the 2012 DFS repositions Etango and has confirmed the technical robustness of the project metrics.

Bannerman noted the globally significant comparators that have been highlighted by the mining and processing optimisation studies and the extensive confirmatory test work.

Management said that these findings placed Etango at the forefront of pending global development projects with targeted annual production at or above two million pounds.

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Tue, 08 May 2018 15:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196511/bannerman-resources-to-benefit-from-cost-reductions-at-etango-196511.html
<![CDATA[News - Bannerman Resources continues to progress uranium project in Namibia ]]> https://www.proactiveinvestors.com.au/companies/news/196004/bannerman-resources-continues-to-progress-uranium-project-in-namibia-196004.html Bannerman Resources Limited (ASX:BMN) is continuing to make steady progress at its Etango Uranium Project in Namibia, successfully completing a membrane study during the March quarter.

The Etango project is situated near Rio Tinto’s (ASX:RIO) Rössing uranium mine, Paladin Energy’s (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine.

Notably, it is one of the world’s largest undeveloped uranium deposits where a definitive feasibility study has confirmed the viability of a large open pit and heap leach operation.

READ: Bannerman Resources membrane study delivers cost savings to Etango

Bannerman chief executive officer Brandon Munro said: “During the March quarter Bannerman continued to sensibly and efficiently progress the Etango Uranium Project.

“The membrane study was completed, confirming at a definitive level that established nano-filtration technology could be applied to reduce reagent costs and generate potential capital savings.

“This study was completed largely using internal resources and sunk costs, in particular, the Etango Heap Leach Demonstration Plant, resulting in an outstanding return on the modest external expenditure.”

Definite feasibility study update progressing

The membrane study tested the effectiveness of five different membrane types on two different solution streams, both generated from the Etango heap leach demonstration plant.

Bannerman’s membrane test work successfully demonstrated the ability of the nano-technology to recover acid for re-use and upgrade the uranium concentration in the solution almost ten-fold.

The data obtained through the membrane study also provides valuable input into the definitive feasibility study update, which is being progressed through 2018.

Favourable jurisdiction for uranium development

Namibia’s president recently confirmed that the New Equitable Economic Empowerment Bill will not include a requirement for 25% project equity to be owned by previously disadvantaged Namibians (PDNs).

Namibia remains an ideal jurisdiction for uranium development and a premier African investment destination.

Uranium market

The uranium spot price has not yet responded to supply cuts announced late 2017 by Cameco and KazAtomProm.

However, demand continues to strengthen with Japan restarting its seventh reactor (with a further two restarts expected during the June quarter) and China announcing the intention to commence construction of 6-8 additional reactors during 2018.

Bannerman continues to expect a significant improvement in the uranium spot price during 2018.

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Mon, 30 Apr 2018 11:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196004/bannerman-resources-continues-to-progress-uranium-project-in-namibia-196004.html
<![CDATA[News - Bannerman Resources membrane study delivers cost savings to Etango ]]> https://www.proactiveinvestors.com.au/companies/news/194684/bannerman-resources-membrane-study-delivers-cost-savings-to-etango-194684.html Bannerman Resources Ltd (ASX:BMN) has completed its membrane study, which has delivered cost savings for its Etango Uranium Project in Namibia.

The study’s reagent and operating cost reductions along with forecast capital savings will be confirmed in the Etango definitive feasibility study update.

The membrane study tested the effectiveness of five different membrane types on two different solution streams, both generated from the Etango heap leach demonstration plant.

Results enhance Etango economically and operationally

Bannerman’s chief executive officer Brandon Munro said: “The amenability of the Etango Project to recent advances in established nano-filtration technology is an exciting outcome that further confirms the robust economics and low technical risk of the Etango project.

“Our technical team undertook the membrane study diligently and comprehensively, utilising the unique advantages Bannerman’s heap leach demonstration plant offers, in particular the access to industrial-scale uranium bearing solution generated from the Etango orebody.

“I am delighted that this success further enhances Etango, both economically and operationally, as a world-class, highly-advanced and strategically important uranium project.”

READ: Bannerman Resources test results reveal more cost reduction potential at Etango

In late 2017 a membrane pilot test rig was mobilised to site to undertake an initial test work program, which is now complete.

The membrane test work undertaken successfully demonstrated the ability of the nano-technology to recover acid for re-use and upgrade the uranium concentration in the solution almost ten-fold.

The extent of forecast operating cost reductions and capital savings will be known following definitive engineering associated with the DFS update.

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Wed, 11 Apr 2018 10:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194684/bannerman-resources-membrane-study-delivers-cost-savings-to-etango-194684.html
<![CDATA[News - Bannerman Resources test results reveal more cost reduction potential at Etango ]]> https://www.proactiveinvestors.com.au/companies/news/188394/bannerman-resources-test-results-reveal-more-cost-reduction-potential-at-etango-188394.html Bannerman Resources Ltd (ASX:BMN) has successfully completed the initial test work phase of the membrane study for its proposed Etango Uranium Mine located in Namibia.

Early results have validated the potential for further capital and operating cost reductions, to be confirmed in the definitive feasibility study (DFS) update underway.

The membrane study initial test work was conducted on-site at the Etango heap leach demonstration plant.

Brandon Munro, chief executive, said: “This now well-established technology has the potential to move the dial at Etango, so we eagerly await the results from this study, expected early next year."

WATCH: Bannerman Resources well positioned for uranium price recovery

Last month, Bannerman released its Etango processing optimisation study results, which reported a substantial decrease in estimated capital costs.

The study also reported the potential for significant reductions in operating costs, prompting this membrane study.

READ: Bannerman Resources positions Etango at forefront of the global uranium development pipeline

Bannerman’s timing is proving fortuitous in the context of the global uranium market.

As it continues to optimise Etango as one of the world’s most compelling undeveloped uranium deposits, the commodity’s price is finding support.

Uranium prices have jumped as major mines are taken offline

Last month, uranium giant Cameco Corp (TSE:CCO) suspended operations at its flagship McArthur River uranium mine in Canada.

Furthermore, earlier this week, the world’s largest uranium producer, Kazakhstan’s state-owned KazAtomProm revealed it will cut production by 20% over the next three years.

Commentary from commodities analysts suggests this news can push spot uranium prices to the mid-high US$20 per pound range and perhaps above US$30 per pound.

Chief executive expects supply changes to push market into deficit

Munro also said: “Recent production cut announcements from the world’s two largest uranium producers, KazAtomProm and Cameco, will remove more than 25 million pounds of uranium from 2018 forecast supply.

“This is expected to put the uranium market into deficit, which follows 11 consecutive years of surplus that has driven prices to fundamentally unsustainable levels.

“Next year promises to be very exciting for our industry and Etango is exceptionally well positioned given its advanced nature, world-class scale and the substantial economic uplift we are targeting in the DFS update.”

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Thu, 07 Dec 2017 07:49:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188394/bannerman-resources-test-results-reveal-more-cost-reduction-potential-at-etango-188394.html
<![CDATA[Media files - Bannerman Resources well positioned for uranium price recovery ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8377/bannerman-resources-well-positioned-for-uranium-price-recovery-8377.html Thu, 16 Nov 2017 10:46:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/8377/bannerman-resources-well-positioned-for-uranium-price-recovery-8377.html <![CDATA[News - Bannerman Resources positions Etango at forefront of the global uranium development pipeline ]]> https://www.proactiveinvestors.com.au/companies/news/187261/bannerman-resources-positions-etango-at-forefront-of-the-global-uranium-development-pipeline-187261.html Bannerman Resources Ltd (ASX:BMN; NSX:BMN) continues to maintain its Etango Uranium Project in Namabia at the forefront of the global uranium development pipeline.

Bannerman has now revealed details of the successfully completed Etango Processing Optimisation Study (Processing OS), by its independent technical consultants, AMEC Foster Wheeler.

And the timing couldn’t be better with Cameco Inc announcing the suspension of production at the world’s largest uranium mine, McArthur River, which will lead to a reduction of almost 10% of world uranium supply in 2018.

Uranium investors are watching this development very closely, with many viewing this closure as the catalyst that will finally pull uranium up from current decade low prices.

Bannerman leveraged to uranium rebound

Bannerman is particularly well positioned for a recovery in uranium price, demonstrated by its dramatic share price run in January 2017 when the uranium spot price increased from current levels to US$26 a pound.

Etango is globally significant, and is the largest, unaligned advanced uranium project in the world.

The project is technically de-risked with a simple bulk tonnage open-pit operation and a successful two-year pilot plant proving the effectiveness of its heap leach processing route.

While the price of uranium sits just off decade lows of US$20 a pound, these prices are unsustainable considering the industry’s average cost of production sits well above this price.

Further, demand growth is strong but an under-investment in uranium over last 20 years leaves very few development projects ready to commence production to meet this demand.

Considering the current Chinese nuclear build-out which is creating unprecedented demand growth, enhanced by the further sharp nuclear growth in India and Russia, this provides the ingredients for an increase in the uranium price based on a supply / demand dynamic that appears to have improved dramatically following Cameco’s announcement.

Etango is located within the Erongo uranium province of Namibia, which also hosts Rio Tinto's (ASX:RIO) Rössing, Paladin Energy Ltd's Langer Heinrich and China General Nuclear’s Husab uranium mines.

The importance of Etango

A uranium development project faces longer time frames than other commodities, due to the unique political, environmental and social challenges involved in permitting uranium exploration and mines.

Coupled with underinvestment in the uranium sector over the past two decades, this has resulted in very few uranium projects of scale that are ready to commence construction when the uranium price correction comes.

Etango is the largest of these advanced projects, and also benefits from its location in uranium-friendly Namibia, environmental permitting in place and secure tenure under a retention licence.

The effect of this lack of production-ready projects is that the nuclear industry will be exposed to the risk of supply inertia – in other words, the risk that there will be insufficient new mine supply regardless of how high the uranium price gets.

This is where Etango’s positioning as a shovel ready project – enhanced by the Processing OS – becomes so significant.

The study is the first completed stage of the Etango DFS Update, with key highlights:

US$73 million estimated Etango processing-related capital cost savings (+/-30%).

- Largest capital reductions from a simplified crushing circuit and confirmation that Ion Exchange is a viable and superior alternative to Solvent Extraction; and
- Process plant design and flowsheet remains low risk by industry standards.

Etango operating costs reduced, with DFS Update to target improvements of US$3+ per pound of uranium.

- Improved recovery and reduced reagent consumption are key drivers; and
- Key capital reductions captured without trading off against higher operating cost.

Further upside potential to be tested.

- Membrane Study to test nano-filtration technology in processing circuit; and
- Use of existing leachate solution and internal expertise ensures modest additional cost.

Adding value through continued technical enhancement of Etango uranium project.

- Initial Etango DFS completed in 2012, optimised in 2015 (mining) and 2017 (processing); and
- DFS Update to be continued in 2018.

The Etango Heap Leach Demonstration Plant was constructed in 2014, following which the company ran a six-phase pilot program that concluded in January 2017.

Next steps

The completed Processing OS and initiated Membrane Study will provide valuable input into a DFS Update, to be continued in 2018.

The DFS Update will include:

- Definitive standard engineering incorporating the enhancements from the mining Optimisation Study (2015), the Processing Optimisation Study (2017) and the Membrane Study (2018);
- Definitive level procurement to capture the full value of the mining sector deflation experienced since the 2012 DFS and to incorporate the competitive benefits from a broader range of technology and equipment vendors;
- Further possible improvements to mine design, mining approach and, if feasible, potential adoption of new mining technologies; and
- Updated external/financial costs and potential infrastructure improvements.

The continued technical enhancement since the 2012 DFS repositions Etango and has confirmed the technical robustness of the project metrics.

The Mining and Processing Optimisation studies and the extensive confirmatory testwork conducted at the Etango Demonstration Plant and external laboratories places Etango at the forefront of the global development pipeline of large projects.

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Wed, 15 Nov 2017 08:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187261/bannerman-resources-positions-etango-at-forefront-of-the-global-uranium-development-pipeline-187261.html
<![CDATA[News - Bannerman Resources secures ideal long-term tenure for Etango ]]> https://www.proactiveinvestors.com.au/companies/news/184942/bannerman-resources-secures-ideal-long-term-tenure-for-etango-184942.html Bannerman Resources (ASX:BMN) has been granted a Mineral Deposit Retention Licence with a five year extendable term for its 95%-owned Etango Uranium Project located in Namibia.

The granting of the Retention Licence is significant as it secures long-term tenure over the future Etango mine site and two satellite deposits.

The Retention Licence also provides Bannerman with the right to continue with exploration or development work, enabling the definitive feasibility study update work program to continue.

Importantly, in the current decade-low uranium price environment, a retention licence in Namibia does not impose any work or expenditure obligations.

Brandon Munro, CEO, commented: “A Retention Licence is the ideal tenure for the highly advanced Etango project.

“It ensures this world-class project can move quickly to a mining licence when the uranium price recovers and gives us maximum flexibility in the meantime. 

A retention licence is designed for projects that are shovel ready but unable to commence mining due to a low prevailing commodity price – hence when commodity prices improve it can be moved to mining licence.  In this sense it provides Etango with an important bridge to a mining licence.

Munro added, “We are grateful for the continued support Bannerman receives from the Namibian government, the grant of this Retention Licence being the latest example.”

Retention Licence details

The Retention Licence covers a large area of 7,295 hectares, which includes the six kilometre long Etango ore body, two substantial satellite deposits at Hyena and Ondjamba and all planned mine infrastructure. 

Accordingly, all of the project’s 271 million pounds of JORC-compliant uranium resources are secured under long-term tenure.

Under Namibian law, a Mineral Deposit Retention Licence may be granted to a project where all feasibility and other work has been completed to enable mining, however the commodity price does not currently support the profitable development of the project. 

The applicant must demonstrate that the relevant commodity price is expected to improve sufficiently to enable profitable mining.

The Retention Licence is a neat interim solution for Bannerman, who applied for a mining licence during better times before Fukushima but were informed mid-2016 that the Namibian Minister of Mines and Energy intended to refuse to grant the licence, citing low uranium prices. 

Bannerman is now perfectly positioned to move to a full mining licence once the uranium price recovers.

VIDEO: Uranium market commentary from Brandon Munro

Etango Uranium Project

The Etango Uranium Project is ideally placed in Namibia, one of the world’s largest and most established uranium exporters.

Etango is located close to all necessary infrastructure and near to Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

A Definitive Feasibility Study (DFS) completed in 2012 confirmed the technical, environmental and financial (at consensus long-term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large-scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.  This rates Etango as the second largest undeveloped uranium mine globally, by scale of annual production.

Furthermore,  the current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

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Tue, 03 Oct 2017 10:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/184942/bannerman-resources-secures-ideal-long-term-tenure-for-etango-184942.html
<![CDATA[Media files - Bannerman Resources upbeat despite pain in the uranium sector ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8101/bannerman-resources-upbeat-despite-pain-in-the-uranium-sector-8101.html Tue, 19 Sep 2017 19:53:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/8101/bannerman-resources-upbeat-despite-pain-in-the-uranium-sector-8101.html <![CDATA[News - Bannerman Resources renews exclusive licence over Etango uranium project ]]> https://www.proactiveinvestors.com.au/companies/news/182429/bannerman-resources-renews-exclusive-licence-over-etango-uranium-project-182429.html Bannerman Resources Ltd (ASX:BMN) has had its Exclusive Prospecting Licence 3345 renewed by the Namibian Ministry of Mines and Energy until the 25th April 2019.

Bannerman’s 95% owned Etango uranium project is situated on the licence, and is located in the Erongo Region of Namibia.

The project is ideally placed in Namibia, one of the world’s largest and most established uranium exporters.

Etango is located close to all necessary infrastructure and near to Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

A Definitive Feasibility Study (DFS) completed in 2012 confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

Brandon Munro, chief executive officer, recently commented:

"The June quarter has involved a period of consolidation after the successful completion of the Demonstration Plant testwork last quarter.

"We have progressed the DFS Update whilst utilising funds conservatively to ensure our cash balance gives us longevity in the context of continuing low uranium prices."

VIDEO - Brandon Munro outlines project development and uranium outlook Uranium market

While the uranium market still remains challenging, forward demand continues to strengthen.

Recently two more Japanese reactors have been re-started, with India to build 10 new reactors.

The nuclear industry brought more than 9 GWe of new plant on line last year, the largest annual increase in 25 years, according to a new World Nuclear Association report.

This puts it on-track to achieve the Association’s goal of providing 25% of electricity in 2050 using 1000 GWe of new nuclear capacity.

Bannerman’s Namibian Partner Transaction

Last month Bannerman completed the Namibian Partner Transaction, which sees One Economy Foundation become a 5% loan-carried shareholder in the Etango uranium project in Namibia.

The transaction fulfils an emerging industry-wide requirement for a minimum of 5% Namibian ownership.

Munro added: "The detailed process undertaken highlighted the One Economy Foundation as an ideal partner.

"In addition to social programs that closely align with Bannerman’s corporate social responsibility vision, the One Economy Foundation’s board and management demonstrate exceptional leadership across all facets of the Namibian economy."

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Tue, 15 Aug 2017 13:09:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182429/bannerman-resources-renews-exclusive-licence-over-etango-uranium-project-182429.html
<![CDATA[News - Bannerman Resources welcomes Namibian partner ]]> https://www.proactiveinvestors.com.au/companies/news/181182/bannerman-resources-welcomes-namibian-partner-181182.html Bannerman Resources (ASX:BMN) has completed the Namibian Partner Transaction, which sees One Economy Foundation become a 5% loan-carried shareholder in the Etango uranium project in Namibia.

The transaction fulfils an emerging industry-wide requirement for a minimum of 5% Namibian ownership.

The One Economy Foundation was chosen as the preferred investor for its governance credentials, strong financial background and long term funding outlook reflective of Etango’s financing dynamics.

Brandon Munro, CEO for Bannerman, commented: “The detailed process undertaken highlighted the One Economy Foundation as an ideal partner.

“In addition to social programs that closely align with Bannerman’s corporate social responsibility vision, the One Economy Foundation’s board and management demonstrate exceptional leadership across all facets of the Namibian economy.”

Analysis

Bannerman conducted an extensive and professional process to arrive at this result and has attracted a premier partner in the Namibian context.

The One Economy Foundation has been described as the implementation arm of all the projects to be undertaken by the office of the Namibian First Lady, Ms Monica Geingos, the Foundation’s Executive Chairperson.

Ms Geingos is highly respected in her own right in Namibia, having established a strong reputation in the country’s financial sector, well before her appointment to public life.

This partnership expands on a close relationship with Bannerman which was built during her six year tenure on the board of Bannerman Mining Resources (Namibia) (Pty) Ltd.

One Economy Foundation has also attracted a Board which includes some of the most respected players in Namibian business and public life.

Bannerman has an enviable record in Corporate Social Responsibility, a vital ingredient in the uranium sector for managing various external risks to project development.

Accordingly, the link between Bannerman’s CSR activities and the Foundation should not be underestimated.

The Foundation is primarily focused on enterprise development and entrepreneurship; integrated early childhood development; gender−based violence response and preventative programmes; health; and institutional strategic support.

In the African context, a minority project interest of 5% is quite modest, particularly when implemented with a sophisticated loan carried structure.

In this case, Bannerman appears to have added significant value to the future of Etango through a well formulated partnership with a premier partner.

Bannerman retains 95% ownership of Etango Uranium Project

The One Economy Foundation is now a 5% shareholder in Bannerman’s Namibian subsidiary, which is the 100% owner of the Etango Uranium Project.

The Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with the loan capital and accrued interest repayable from future dividends.

Etango, Bannerman’s principal asset, is one of the largest and most advanced uranium development projects globally.

The project is ideally placed in Namibia, one of the world’s largest and most established uranium exporters, and is located close to all necessary infrastructure and near to Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

A Definitive Feasibility Study (DFS) completed in 2012 confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

Updating the DFS

Bannerman has commenced a DFS update in conjunction with its key consultants, AMEC Foster Wheeler.

This process will target substantial capital and operating cost improvements through incorporating the results from the Etango Demonstration Plant and evaluating other value accretive opportunities in processing, mining and infrastructure.

]]>
Thu, 20 Jul 2017 13:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/181182/bannerman-resources-welcomes-namibian-partner-181182.html
<![CDATA[Media files - Bannerman Resources' Brandon Munro outlines project development and uranium outlook ]]> https://www.proactiveinvestors.com.au/companies/stocktube/7623/bannerman-resources-brandon-munro-outlines-project-development-and-uranium-outlook-7623.html Tue, 13 Jun 2017 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/7623/bannerman-resources-brandon-munro-outlines-project-development-and-uranium-outlook-7623.html <![CDATA[News - Bannerman Resources appoints Mike Leech to board ]]> https://www.proactiveinvestors.com.au/companies/news/176347/bannerman-resources-appoints-mike-leech-to-board-176347.html Bannerman Resources (ASX:BMN) has appointed former managing director of Rössing Uranium Mine in Namibia to its board of directors.

Leech will sit on the board as a non-executive director and chairman of the company’s Namibian subsidiary.  333

He was Managing Director of the Rössing Uranium Mine in Namibia for six years until retiring in 2011.

Prior to that he served as Rössing’s chief financial officer and in other executive positions within the Rio Tinto Group.

Rossing is arguably the largest open pit uranium mine in the world, and is analogous in many ways to Bannerman’s proposed Etango Mine.  For many years Rossing was amongst the 2-3 most important industrial facilities in Namibia.

Accordingly, Leech will support Bannerman’s engineering team as it refines a number of feasibility parameters under the current definitive feasibility study update work program.

Ronnie Beevor, chairman, commented, “We are delighted to welcome Mike Leech to the Bannerman board and as chairman of our Namibian subsidiary.

“He brings deep operating experience to the company as we prepare to develop our Etango Uranium Project and he further strengthens Bannerman’s credibility and reputation in-country.

“Mike’s broad network amongst nuclear utilities globally, and his enhanced understanding of the uranium sector, complements Bannerman’s already strong uranium marketing credentials.”

This is a significant win for Bannerman and a strong endorsement of the Company’s Etango project, for the junior developer to attract a board member of Leech’s calibre.

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Wed, 12 Apr 2017 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176347/bannerman-resources-appoints-mike-leech-to-board-176347.html
<![CDATA[News - Bannerman Resources signs long term partner for uranium project ]]> https://www.proactiveinvestors.com.au/companies/news/174726/bannerman-resources-signs-long-term-partner-for-uranium-project-174726.html Bannerman Resources (ASX:BMN) has entered into an agreement with the One Economy Foundation to become a 5% loan-carried shareholder in the Etango uranium project in Namibia.

This Namibian ownership cements a key pillar of Bannerman’s corporate social responsibility in Namibia.

The One Economy Foundation is a Namibian not-for-profit organisation that concerns itself with the dual economy in Namibia.

Brandon Munro, CEO, commented: “We are delighted to welcome the One Economy Foundation as long-term equity partners in the Etango Project.

“The One Economy Foundation’s mission and approach is closely aligned with Bannerman’s outstanding record as a leader in corporate social responsibility.”


Subscription agreement details

As part of the subscription agreement, Bannerman will issue 5% of its ordinary share capital to the One Economy Foundation for par (nominal) value.

The One Economy Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with the loan capital and accrued interest repayable from future dividends.

The agreement is subject to typical conditions precedent including due diligence and formal documentation.


Background

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) completed in 2012 confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Feasibility study update

Bannerman most recently commenced a definitive feasibility study update at Etango.

The study update commencement follows the successful completion of the Etango heap leach demonstration plant program.

The six phase demonstration plant program showed the strong potential to achieve and exceed the standing definitive feasibility study metallurgical parameters.

This will occur in parallel with assessment of other potential operating and capital cost reduction opportunities.

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Tue, 14 Mar 2017 11:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174726/bannerman-resources-signs-long-term-partner-for-uranium-project-174726.html
<![CDATA[News - Bannerman Resources biggest shareholder increases stake ]]> https://www.proactiveinvestors.com.au/companies/news/172812/bannerman-resources-biggest-shareholder-increases-stake-172812.html Bannerman Resources (ASX:BMN; NSX:BMN) key shareholder, Resource Capital Fund, has further increased its position in the company and now holds a 33.58% stake.

The increase in holding came from participation in the Tranche 2 placement.

Funds raised from the placement along with existing cash, will be primarily used for internal and external engineering designed to assess and quantify opportunities to reduce operating and capital cost estimates at the wholly-owned Etango project in Namibia.

Etango is located near Rio Tinto's (ASX:RIO) Rössing uranium mine, Paladin Energy's (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

Bannerman recently commenced a definitive feasibility study update.

]]>
Wed, 08 Feb 2017 09:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172812/bannerman-resources-biggest-shareholder-increases-stake-172812.html
<![CDATA[News - Bannerman Resources completes placement ]]> https://www.proactiveinvestors.com.au/companies/news/172651/bannerman-resources-completes-placement-172651.html Funds raised from the placement along with existing cash, will be primarily used for internal and external engineering designed to assess and quantify opportunities to reduce operating and capital cost estimates at the wholly-owned Etango project in Namibia.

These costs have arisen from the company’s successful heap leach demonstration program.

Etango is located near Rio Tinto (ASX:RIO) Rössing uranium mine, Paladin Energy (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

Bannerman recently commenced a definitive feasibility study update.

]]>
Mon, 06 Feb 2017 09:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172651/bannerman-resources-completes-placement-172651.html
<![CDATA[News - Bannerman Resources commences uranium feasibility study update ]]> https://www.proactiveinvestors.com.au/companies/news/172533/bannerman-resources-commences-uranium-feasibility-study-update-172533.html Bannerman Resources (ASX:BMN) has commenced a definitive feasibility study update at its flagship 100% owned Etango Project located in Namibia.

The study update commencement follows the successful completion of the Etango heap leach demonstration plant program.

The six phase demonstration plant program showed the strong potential to achieve and exceed the standing definitive feasibility study metallurgical parameters.

This will occur in parallel with assessment of other potential operating and capital cost reduction opportunities.

Brandon Munro, CEO, commented: “Our two year commitment to the Etango Demonstration Plant program has been a remarkable success.

“Not only have we consolidated Etango’s position as one of the most advanced large uranium projects globally, but we have also generated substantial opportunities to enhance and further de-risk the Etango project.”


Background

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) completed in 2012 confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Demonstration plant program

The objectives of the demonstration plant program were secured through an initial five phase test program.

Phase 1 - Commissioning (complete)
Phase 2 - Reproducibility (complete)
Phase 3 - Solution Recycle (complete)
Phase 4 - Solvent Extraction (complete)
Phase 5 - Value Engineering (complete)

During the December quarter, Bannerman completed its extended and final Phase 6 of the heap leach demonstration plant program at Etango.

The overall results of Phase 6 are comparable to the DFS parameters, including for grades significantly lower than expected average Etango head grade.

Phase 6 test-work findings have defined an upper economic limit with regard to the impact of crush size and crushing circuit options on leach performance.


Analysis

Bannerman Resources has entered the 2017 calendar year with a pro-forma cash balance of $5 million positioning it well within an environment of improving uranium sector sentiment.

With the data collected over the past two years, Bannerman can now evaluate a stream of potential capital and operating cost wins that should collectively deliver a DFS update which substantially improves Etango’s forecast economics.

The uranium spot price reached a 12 year low in November 2016 and has subsequently increased 25% through January 2017.

In a significant move, uranium producer Kazatomprom recently announced that it would cut uranium oxide production by 10% in 2017.

Evidence of supply constraints continues to build while the demand outlook also improves.

Bannerman shares have raced up 150% year to date, currently priced at $0.076.

]]>
Thu, 02 Feb 2017 12:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172533/bannerman-resources-commences-uranium-feasibility-study-update-172533.html
<![CDATA[News - Bannerman Resources is cashed up and ready for uranium recovery ]]> https://www.proactiveinvestors.com.au/companies/news/172072/bannerman-resources-is-cashed-up-and-ready-for-uranium-recovery-172072.html Bannerman Resources (ASX:BMN) has entered the 2017 calendar year with a pro-forma cash balance of $5 million positioning it well within an environment of improving uranium sector sentiment.

During the December quarter, Bannerman completed its extended Phase 6 of the heap leach demonstration plant program for its flagship 100% owned Etango Project located in Namibia.

Phase 5 was completed in the September 2016 quarter delivered clear potential for substantial capital and operating cost savings at Etango.

This Phase 6 test-work was undertaken during the December quarter and results will be available during this current March quarter.

Brandon Munro, CEO, commented: “I am delighted with Bannerman’s progress over another successful quarter. Uranium sector sentiment is improving, supply and demand dynamics are tightening and we can foresee a number of catalysts potentially coming into play in 2017.”


Background

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Analysis

Bannerman’s strong cash position places it in a sustainable position to continue advancing its Etango project in a uranium market that is showing signs of turning.

The uranium spot price reached a 12 year low in November 2016 and has subsequently increased 25% through January 2017.

In a significant move, uranium producer Kazatomprom recently announced that it would cut uranium oxide production by 10% in 2017.

Evidence of supply constraints continues to build while the demand outlook also improves.

Ten new nuclear reactors were commissioned during 2016.

Bannerman shares have doubled over the past month, currently priced at $0.056.

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Tue, 24 Jan 2017 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172072/bannerman-resources-is-cashed-up-and-ready-for-uranium-recovery-172072.html
<![CDATA[Media files - Bannerman highlights improving sentiment in uranium market ]]> https://www.proactiveinvestors.com.au/companies/stocktube/6729/bannerman-highlights-improving-sentiment-in-uranium-market-6729.html Fri, 13 Jan 2017 15:38:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/6729/bannerman-highlights-improving-sentiment-in-uranium-market-6729.html <![CDATA[News - Bannerman Resources receives vote of confidence from shareholders ]]> https://www.proactiveinvestors.com.au/companies/news/171443/bannerman-resources-receives-vote-of-confidence-from-shareholders-171443.html Bannerman Resources (ASX:BMN) received the necessary shareholder support yesterday to ratify the issue of shares to investors including major shareholder and supporter  Resource Capital Fund VI L.P.

In October 2016, Bannerman successfully completed a A$4 million placement to continue the advancement of the flagship Etango uranium project located in Namibia.

The placement was undertaken to fund internal and external engineering designed to assess and quantify opportunities to reduce Etango project operating and capital cost estimates that have arisen from the company’s heap leach demonstration program.

Results from the heap leach demonstration plant at Etango have already identified a number of opportunities to reduce operating and capital cost estimates from the definitive feasibility study.

In the face of growing demand for uranium and with the strong support of existing shareholders, Bannerman continues to advance the Etango project, which remains one of the very few globally significant uranium projects that can realistically be brought into production in the medium term.

The price of uranium has risen recently, trading around $US22 per pound, which is circa 20% higher than the 12-year low it touched in November.

Bannerman shares are trading at $0.04, a healthy premium to the placement issue price of $0.03.

]]>
Wed, 11 Jan 2017 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171443/bannerman-resources-receives-vote-of-confidence-from-shareholders-171443.html
<![CDATA[News - Bannerman Resources further improves register as uranium price bounces ]]> https://www.proactiveinvestors.com.au/companies/news/170705/bannerman-resources-further-improves-register-as-uranium-price-bounces-170705.html Bannerman Resources (ASX:BMN) is seeing signs of a potential recovery in the uranium market as a major fund has joined its register following an 18% bounce in the uranium price to US$21.10 per pound.

A line of 25 million Bannerman shares was purchased on market by a major Australian institutional fund manager with over A$16 billion of listed equity funds under management.

Brandon Munro, CEO, told Proactive Investors exclusively: “We have seen a sharp uptick in interest in the uranium sector as the smart money positions for the commodity bottoming out. 

“The spot price bounce in the last week has taken many by surprise.

“We have seen a number of utilities and traders entering the spot market, which is unusual for this time of year and bodes well for 2017.”

Bannerman’s flagship Etango uranium project is the world’s largest uranium project that is not held by a state owned entity or major.


Uranium price action

An exchange traded fund (ETF) that is seen as representative of the uranium mining space, Global X Funds (NYSEARCA:URA), has rallied 15.9% since the start of November.

During the September quarter, four new nuclear reactors went online globally, taking the total to nine in the first three quarters of 2016.

Looking ahead, the number of nuclear reactors going online will start increasing with 57 nuclear reactors around the world currently under construction and a further 167 reactors planned for the next decade.

Almost 40 new reactors will become operational by 2019, which will drive uranium demand in the medium term.

The new reactors coming online are expected to increase demand by 20% on the current annual consumption of 174 million pounds.


Background

Bannerman’s Etango Project is located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Since 2015, Bannerman has conducted a large-scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Recent results from the heap leach demonstration plant Etango identified a number of opportunities to reduce operating and capital cost estimates from the DFS.

Current mine life of 16 years from a reserve of 130 million pounds U3O8 has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

Environmental clearance and accessible infrastructure positions the project for financing once the uranium price recovers.


Analysis

The securing of a new major fund manager as a shareholder in Bannerman provides further evidence that the uranium market is positioned for a rebound.

Bannerman recently secured $4 million in an oversubscribed placement, which saw Resource Capital Funds (a mining-focused private equity firm with a strong focus on governance and due diligence) support the raising.

The increasing support from investors shows the institutional grade investment Etango represents.

As market sentiment for uranium shows signs of improvement, the Etango project continues to emerge as one of the world’s largest undeveloped uranium projects, a fact that gives Bannerman sector-leading valuation leverage to a uranium price recovery.

Bannerman shares have proven resilient and are trading up 19% over the past month, currently priced at $0.031.

Funding from the recent successful equity raising secures a busy work program going forward for Bannerman, with the majority to be used for engineering designed to assess and quantify opportunities to reduce Etango project cost estimates.

The raising also provides Bannerman with working capital that will fund the company into 2018.

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Tue, 20 Dec 2016 09:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170705/bannerman-resources-further-improves-register-as-uranium-price-bounces-170705.html
<![CDATA[News - Bannerman Resources appoints Twapewa Kadhikwa to board of Namibian subsidiary ]]> https://www.proactiveinvestors.com.au/companies/news/170358/bannerman-resources-appoints-twapewa-kadhikwa-to-board-of-namibian-subsidiary-170358.html Kadhikwa’s appointment coincides with the resignation of Monica Kalondo after serving the company as a director since 2010.

Brandon Munro, chief executive officer, commented:

"I am delighted to welcome Twapewa as a director of our Namibian subsidiary. I know that her energy and profile positions her as an ideal ambassador within Namibia for the Etango Project."

Bannerman's Etango uranium project in Namibia is strategically located near Rio Tinto’s (ASX:RIO) Rössing uranium mine, Paladin Energy’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine.

Based on the Etango DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

This scale makes Etango the world’s largest uranium project that is not held by a state owned entity or major.

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Tue, 13 Dec 2016 11:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170358/bannerman-resources-appoints-twapewa-kadhikwa-to-board-of-namibian-subsidiary-170358.html
<![CDATA[News - Bannerman Resources Ltd completes tranche 1 of placement for Etango ]]> https://www.proactiveinvestors.com.au/companies/news/168448/bannerman-resources-ltd-completes-tranche-1-of-placement-for-etango-168448.html Bannerman Resources Ltd (ASX:BMN; NSX:BMN) has completed tranche 1 of its heavily oversubscribed placement with the issue of 116.7 million shares at A$0.03 per share.

The remaining 16.7 million new shares to be issued to Resource Capital Fund VI L.P. are subject to shareholder approval at an extraordinary general meeting.

The raising follows results from Bannerman’s heap leach demonstration plant at its wholly-owned Etango uranium project in Namibia.

The plant identified a number of opportunities to reduce operating and capital cost estimates from the 2012 Definitive Feasibility Study (DFS).

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

This scale makes Etango the world’s largest uranium project that is not held by a state owned entity or major.

Etango is strategically located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

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Thu, 03 Nov 2016 13:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168448/bannerman-resources-ltd-completes-tranche-1-of-placement-for-etango-168448.html
<![CDATA[News - Bannerman Resources secures $4M in oversubscribed placement for Etango uranium ]]> https://www.proactiveinvestors.com.au/companies/news/168186/bannerman-resources-secures-4m-in-oversubscribed-placement-for-etango-uranium-168186.html Bannerman Resources Ltd (ASX:BMN) has raised $4 million in a heavily oversubscribed placement priced at $0.03 per share.

The raising follows results from Bannerman’s heap leach demonstration plant at its wholly-owned Etango uranium project in Namibia, which identified a number of opportunities to reduce operating and capital cost estimates from the 2012 Definitive Feasibility Study (DFS).

The funds raised will be primarily used for engineering studies to quantify the extent of those cost reduction opportunities and to give the company sufficient working capital to see the uranium cycle improve.

Shares will be issued to institutional and sophisticated investors including existing shareholder, Resource Capital Fund VI L.P.

Bannerman CEO Brandon Munro commented: “We are delighted with the strength of the response to our placement offering.

“It is a testament to the quality of the Etango project and its outstanding positioning to capitalise on an expected rebound in uranium market prices over coming years.”


Use of funds

Funds raised will be largely used for engineering designed to assess and quantify opportunities to reduce Etango project cost estimates.

The cost reduction opportunities have arisen from the company’s successful Heap Leach Demonstration Program.  The recently completed Phase 5 test work indicated potential for optimisation and cost savings including:

- Recovery of 93% in 22 days (compared with the 87% estimate in the DFS)
- Acid consumption approximately 25% less than the DFS
- Potential for other reagent savings, including binder
- Consistent recovery at coarser crushing and the potential to substitute high pressure grinding rolls with conventional crushing.

The potential wins from binder reduction and changes to the crushing circuit warranted commencement in October of an additional Phase 6 of the program.

Overall, the potential operating and capital cost savings could add tens of millions of dollars to the Etango project’s published NPV.

The raising also provides Bannerman with working capital that will fund the company into 2018.


Background

Bannerman’s Etango Project is located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

This scale makes Etango the world’s largest uranium project that is not held by a state owned entity or major. 

Since 2015, Bannerman has conducted a large-scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Current mine life of 16 years from a reserve of 130 million pounds U3O8 has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

Environmental clearance and accessible infrastructure positions the project for financing once the uranium price recovers.


Analysis

Securing $4 million in an oversubscribed placement is a vote of confidence for both the Etango uranium project and the uranium market outlook.

Having Resource Capital Funds (a mining-focused private equity firm with a strong focus on governance and due diligence) support the raising, shows the institutional grade investment Etango represents.

This is complimented by the addition of several institutional investors and influential high net worth individuals amongst the raising.

The uranium market continues to show evidence of tightening through diminishing supply.

The further decline in the uranium price is, paradoxically, a good sign for a recovery as a greater proportion of world production will be uneconomic at this price, leading to supply disruption occurring sooner.

On the demand front, a number of milestones have been achieved in China, Russia, India and the U.K.

China’s nuclear program continues to gain momentum with the Fuqing #3 reactor connected to the grid during the September quarter.

This is the 35th operational nuclear power reactor in China.  Russia and India also commissioned new reactors.

The U.K. government approved construction of two large reactors at Hinkley Point C while Russia announced it would construct 11 new reactors by 2030.

As market sentiment for uranium shows signs of improvement, the Etango project continues to emerge as one of the world’s largest undeveloped uranium projects, a fact that gives Bannerman sector leading valuation leverage to a uranium price recovery.

The spot uranium price has declined to US$20/lb - a decrease of 33% since Munro took the reins in March.

Nonetheless, shares in Bannerman are trading up 25% over the past three months, currently priced at $0.033.

]]>
Fri, 28 Oct 2016 13:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168186/bannerman-resources-secures-4m-in-oversubscribed-placement-for-etango-uranium-168186.html
<![CDATA[News - Bannerman Resources Ltd to lift cash balance for uranium in Namibia ]]> https://www.proactiveinvestors.com.au/companies/news/167956/bannerman-resources-ltd-to-lift-cash-balance-for-uranium-in-namibia-167956.html Bannerman Resources Ltd (ASX:BMN) has been granted a trading halt this morning, pending details of a capital raising.

Bannerman wholly-owns the Etango Project, which is strategically located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine - which is currently under construction.

Based on the Etango project Definitive Feasibility Study, Etango's production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

The halt will remain in place until the opening of trade on Friday 28th October 2016, or earlier if an announcement is made to the market.

]]>
Wed, 26 Oct 2016 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167956/bannerman-resources-ltd-to-lift-cash-balance-for-uranium-in-namibia-167956.html
<![CDATA[News - Bannerman Resources Ltd responds to ASX Query as sentiment returns ]]> https://www.proactiveinvestors.com.au/companies/news/167667/bannerman-resources-ltd-responds-to-asx-query-as-sentiment-returns-167667.html Bannerman Resources Ltd's (ASX:BMN) shares have hit $0.045 intra-day yesterday, or around 41% higher than yesterday's close, with the company receiving an ASX Price and Volume Query.

Bannerman responded to the ASX that it was not aware of any reason for the change in trading.

The company did however point to an improvement in investor sentiment for uranium.

Bannerman recently outlined results from the Etango Heap Leach Demonstration Plant in Namibia which significantly de-risked the proposed process route.

Results also highlighted opportunities to reduce both capital and operating cost estimates.

Bannerman wholly-owns the Etango Project, which is strategically located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine - which is currently under construction.

Based on the Etango project Definitive Feasibility Study, Etango's production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

]]>
Thu, 20 Oct 2016 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167667/bannerman-resources-ltd-responds-to-asx-query-as-sentiment-returns-167667.html
<![CDATA[News - Bannerman Resources Ltd's uranium plant test results de-risk Etango ]]> https://www.proactiveinvestors.com.au/companies/news/166656/bannerman-resources-ltds-uranium-plant-test-results-de-risk-etango-71282.html Bannerman Resources Ltd (ASX:BMN) has received results from Phase 5 of its heap leach demonstration plant program for the Etango uranium project in Namibia.

Phase 5, aimed at optimising the metallurgical process, has delivered potential for substantial capital and operating cost savings.

This further de-risks the uranium project, which will assist Bannerman in its search for project partners.

Bannerman will now move on to the final Phase 6 of the program, which will look to lower crushing and binder costs.

Brandon Munro, CEO, commented: “Our team has continued to deliver superb return on investment at the Etango heap leach demonstration plant.

“The two-year program has now been extended into a sixth phase, such is the extent of the positive impact on capital and operating costs we expect to attain.”


Background

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Phase 5 results

The main objectives of this phase were to test different particle sizes and crushing methods as well as different binder addition rates.

The consistent results observed from Phase 5 indicate the low technical risk and further potential cost savings for the Etango Project.

An average uranium extraction of 93.6% within 22 days was achieved for the eight columns.  This compares with the DFS projections for a scaled-up heap of 86.9%.

The average acid consumption is also lower than the DFS projected value of 17.6kg/t.  The Phase 5 average acid consumption was 14.4 kg/t.


Heap Leach Demonstration Plant (Phases 1-5)

The plant program is an integral step towards the Etango project’s detailed engineering and financing phases.

Phase 1 - Commissioning (complete)
Phase 2 - Reproducibility (complete)
Phase 3 - Solution Recycle (complete)
Phase 4 - Solvent Extraction (complete)
Phase 5 - Value Engineering (complete)

The Phase 5 test work indicates further potential for optimisation and cost savings.

As such the team has formulated an additional Phase 6, which has commenced - results are expected to be available by the end of November 2016.


Analysis

Phase 5 test work has confirmed optimisation potential exists, which significantly de-risks the uranium project, both technically and financially.

Overall results and observations from Phase 5 were in-line with those obtained for all the
preceding phases, validating the value of the findings to date.

Furthermore, testing is able to give credit to the DFS projections and inputs used, both the average uranium extraction and acid consumption demo results are better than the estimates used.

These results continue to demonstrate that the plant program has been, and is, a success.

It removes one of the key potential risks a financing party or lender would be concerned about; heap leaching is not used often in uranium, although proposed adoption of heap leaching at Olympic Dam validates its suitability.

This advances Bannerman’s unique position as owning one of the world’s largest undeveloped uranium projects that is development ready as soon as the uranium market shows signs of recovery.

The board has made a strong decision to continue advancing the project in this challenging uranium price climate, which demonstrates confidence in the project.

The outcome of this success is that Bannerman is primed to benefit when uranium prices turn.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Thu, 29 Sep 2016 12:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/166656/bannerman-resources-ltds-uranium-plant-test-results-de-risk-etango-71282.html
<![CDATA[News - Bannerman Resources Ltd strengthens marketing and project financing capabilities ]]> https://www.proactiveinvestors.com.au/companies/news/165391/bannerman-resources-ltd-strengthens-marketing-and-project-financing-capabilities-70442.html Bannerman Resources Ltd (ASX:BMN; NSX:BMN) has appointed Nuclear Fuel Associates LLC and Fivemark Partners to strengthen the company's strategic, uranium marketing and project financing capabilities.

The engagement of these advisers is directed at ensuring Bannerman advances product marketing and project financing initiatives for its wholly-owned Etango Uranium Project through the current trough in uranium market conditions.

Bannerman said that it considers this critical in maintaining and capitalising on its advanced project status and early mover advantage in the global uranium development sector.

Brandon Munro, chief executive officer for Bannerman, commented:

“The appointment of Nuclear Fuel Associates and Fivemark Partners ensures we can maintain our early mover status by condensing uranium marketing and project financing lead times as and when uranium market conditions begin to strengthen.

"The willingness of such high calibre partners to accept equity incentive weighted payment underscores their confidence in the Bannerman team, the Etango Project and their positive outlook for uranium prices.”


Etango's potential

Etango is located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine where construction is nearing completion.

A Definitive Feasibility Study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Analysis

Bannerman is in the unique position of being an advanced, large scale project in a secure jurisdiction that is unaligned with any major uranium companies or state owned entities.

These factors are highly appealing to nuclear utilities who wish to secure long term reliable supply.

The uranium production sector by its nature is unable to adequately respond to supply challenges.

Munro has resided in Namibia for over 5 years and will be looking to draw on this experience and his transactional background to progress Etango.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

]]>
Mon, 15 Aug 2016 12:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165391/bannerman-resources-ltd-strengthens-marketing-and-project-financing-capabilities-70442.html
<![CDATA[News - Bannerman Resources Ltd progresses Etango uranium project under new CEO ]]> https://www.proactiveinvestors.com.au/companies/news/150037/bannerman-resources-ltd-progresses-etango-uranium-project-under-new-ceo-70045.html Bannerman Resources Ltd (ASX:BMN) has just completed its first quarter at the reins of new CEO, Brandon Munro.

Munro has resided in Namibia for over 5 years and will be looking to draw on this experience and his transactional background to progress forward the Etango Uranium Project located in Namibia.

The June quarter saw the successful completion of Phase 4 of the heap leach demonstration plant program, renewal of Prospecting Licence 3345 and cost savings via a de-listing from the Toronto Stock Exchange.

After de-risking Etango’s project financing through completing Phase 4 of the program, Bannerman has flagged positive news from Phase 5, the final phase focused on further optimisation.

By delivering genuine proof of concept via this program Bannerman is able to deliver a stronger proposal to project financing partners.

The program has also outperformed several parameters in the Etango Definitive Feasibility Study, creating further opportunities for optimising the project’s cost parameters.


Brandon Munro

Munro was appointed CEO and managing director on 9 March, 2016. He is a former corporate lawyer with 18 years’ experience in leading Australian commercial law firms and executive management roles.

Between 2009 and 2011 Munro worked as a General Manager for Bannerman in Namibia before becoming managing director of ASX-listed Kunene Resources Ltd, a company focused on base metals exploration in Namibia, until completion of a reverse takeover in late 2015.

Whilst running Kunene, Munro demonstrated broad transactional skills.

He aggregated a contiguous block of 11 Exclusive Prospecting Licences totalling 400,000 hectares of prime exploration ground, brought the Namibian Former Robben Island Political Prisoners Trust to the table as a prime local partner and joint ventured the project with First Quantum Minerals, bringing the leading African copper producer to Namibia for the first time.

After living in Namibia for more than 5 years, Munro has built extensive relationships with the Namibian Government and the wider community.

He served in advisory roles with the Namibian Uranium Association and the Chamber of Mines and continues as a Trustee of high-profile conservation NGO, Save the Rhino Trust.


Etango uranium project

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine where construction is nearing completion.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.

Heap Leach Demonstration Plant (Phases 1-5)

The plant program is an integral step towards the Etango project’s detailed engineering and financing phases.

Phase 1 - Commissioning (complete)
Phase 2 - Reproducibility (complete)
Phase 3 - Solution Recycle (complete)
Phase 4 - Solvent Extraction (complete)
Phase 5 - Value Engineering (in progress)

The completion of Phase 4 test work has now delivered final validation across all aspects of the planned process route for the Etango Project.

The results point to exceptionally good heap leaching kinetics: an extraction of 93% is achieved within only 20 days with low acid consumption and no solvent extraction complications.

The objective of Phase 5 is to conduct optimisation studies in conventional crushed ore, binders and coarser crushed ore, which again will look to improve on project economics.


Uranium Market

The unsustainably low uranium price environment has started to have an effect on primary supply.

Cameco Corporation (TSE:CCO), the world’s largest uranium producer, announced suspension of operations at its Rabbit Lake mine and has signalled a reduction for 2016 production at McArthur River and has deferred wellfield development at its in-situ leach (ISR) operations in the U.S.

Bannerman believes that primary supply will continue to be interrupted unless uranium prices increase in the short term.

Uranium demand projections indicate strong growth in the medium to long term, particularly in light of the vital role nuclear power must play in containing climate change.

A number of global events are supportive of nuclear power:

- The U.S. recently connected their first new nuclear reactor in 20 years, extended the operating life of a reactor to 80 years and joined Canada and Mexico in setting aggressive clean energy targets;
- The Swedish parliament has agreed to abolish tax on nuclear power;
- China’s nuclear program progresses forward with five new reactors completed year to date.

These developments bode well for Bannerman, which is widely regarded as offered the greatest leverage to a recovering uranium price of any traded uranium stock.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 27 Jul 2016 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/150037/bannerman-resources-ltd-progresses-etango-uranium-project-under-new-ceo-70045.html
<![CDATA[News - Bannerman Resources demonstrates heap leaching success at Etango Uranium Project ]]> https://www.proactiveinvestors.com.au/companies/news/150036/bannerman-resources-demonstrates-heap-leaching-success-at-etango-uranium-project-69666.html Bannerman Resources Ltd (ASX:BMN; NSX:BMN) has successfully completed Phase 4 of the Etango Heap Leach Demonstration Plant Program for its Etango uranium project in Namibia.

The completion of Phase 4 test work has now delivered final validation across all aspects of the planned process route for the Etango Project.

The results point to exceptionally good heap leaching kinetics: an extraction of 93% is achieved within only 20 days with low acid consumption and no solvent extraction complications.

By delivering genuine proof of concept via this program Bannerman has definitively proven the heap leaching aspect of the project is feasible.

This further de-risks the uranium project, which will assist Bannerman in its search for project partners.

Bannerman will now move on to the final Phase 5 of the program, which will look to further optimise the process.


Brandon Munro, CEO, commented

“The outstanding results from Phase 4 signal the definitive success of the Demonstration Plant Program.

“The program has conclusively achieved its core objective of technically de-risking the heap leaching process for Etango.

“In validating the definitive feasibility study design parameters and confirming projected performance the program has also identified clear opportunities to enhance the project’s financial performance.”


Background

Bannerman’s principal asset is its 100%-owned Etango Project located near Rio Tinto Ltd’s (ASX:RIO) Rössing uranium mine, Paladin Energy Ltd’s (ASX:PDN) Langer Heinrich uranium mine and China General Nuclear Power Corp’s Husab uranium mine currently under construction.

A definitive feasibility study (DFS) has confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Since 2015, Bannerman has conducted a large scale heap leach demonstration program to provide further assurance to financing parties and generate process information.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Heap Leach Demonstration Plant (Phases 1-5)

The plant program is an integral step towards the Etango project’s detailed engineering and financing phases.

Phase 1 - Commissioning (complete)
Phase 2 - Reproducibility (complete)
Phase 3 - Solution Recycle (complete)
Phase 4 - Solvent Extraction (complete)
Phase 5 - Value Engineering (in progress)

The objective of Phase 5 is to conduct optimisation studies in conventional crushed ore, binders and coarser crushed ore, which again will look to improve on project economics.


Licencing update

Bannerman has had its Namibian prospecting licence renewed, which hosts the 100% owned Etango uranium project.

The renewal of Exclusive Prospecting Licence 3345 will last until 25 April 2017.

The company’s mining licence application is likely to be refused, with the Ministry of Mines and Energy notifying the company of this intention due to the current low uranium prices.

The granted environmental clearances remain valid and Bannerman retains the right to re-apply for a mining licence when the uranium market recovers.

Etango is one of the world’s largest undeveloped uranium deposits with environmental permitting set to be a top 10 producer.


Analysis

Phase 4 test work has confirmed the viability of the heap leaching process, which significantly de-risks the uranium project, both technically and financially.

Taken as a whole, the results of the demonstration program are exceptional: achieving 93% extraction from heap leaching is impressive, particularly in only 20 days.

Further, the ore is ideal from a low acid consumption perspective, reducing one of the largest variable costs in the processing flowsheet.

Finally, the solvent extraction trials in Phase 4 show that there are no impurities in the leach solution and the uranium in solution fully loads within 30 seconds.

The overall result is very positive as Bannerman can now definitively say the demonstration plant is a success.

In turn, this removes one of the key potential risks a financing party or lender would be concerned about; heap leaching is not used often in uranium, although proposed adoption of heap leaching at Olympic Dam validates its suitability.

This advances Bannerman’s unique position as owning one of the world’s largest undeveloped uranium projects that is development ready as soon as the uranium market shows signs of recovery.

Phase 5, currently in progress, which plans to further improve the process and reduce costs, has seen initial outcomes showing clear potential for adoption of coarser grind sizes and lower reagent usage.

The board has made a strong decision to continue advancing the project in this challenging uranium price climate, which demonstrates confidence in the project.

The outcome of this success is that Bannerman is primed to benefit when uranium prices turn.

During June, Namibia’s President held talks with Indian delegates reiterating their commitment to supplying India with uranium.

This could strengthen demand for Namibia’s uranium as India signed a treaty with Namibia in 2009 for the peaceful nuclear energy use but is yet to be implemented.

Given China and Russia also have ambitious nuclear programs, Bannerman’s Etango has sufficient scale and technical simplicity to be strategically important.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 07 Jul 2016 09:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/150036/bannerman-resources-demonstrates-heap-leaching-success-at-etango-uranium-project-69666.html
<![CDATA[News - Bannerman Resources Ltd completes voluntary de-listing from Toronto Stock Exchange ]]> https://www.proactiveinvestors.com.au/companies/news/150035/bannerman-resources-ltd-completes-voluntary-de-listing-from-toronto-stock-exchange-68557.html Bannerman Resources Ltd's (ASX:BMN; NSX:BMN) has outlined that its application for a voluntary de-listing of its securities from trading on the Toronto Stock Exchange (TSX) has been accepted.

The company's securities will be de-listed from the TSX with effect from the close of business on 11 May 2016.

No change will occur to the quotation and trading of Bannerman shares on the Australian Securities Exchange or the Namibian Stock Exchange.

Bannerman is focused on the wholly-owned Etango uranium project in Namibia.

Etango is one of the world’s largest undeveloped uranium deposits replete with environmental permitting and will be a top 10 producer once developed within a strong de-risked uranium jurisdiction, Namibia.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


Canadian shareholders

After the de-listing date and until a transfer to the Australian register is effected, shareholders on the Canadian register and beneficial shareholders holding their securities through a CDS participant/broker will not be able to trade their shares on the ASX and their holdings will remain on the Canadian share register.

Securities held on the Canadian register which have not been transferred by 10 June 2016 will automatically be transferred to an Issuer Sponsored Holding on the Australian share register.

Once this occurs, these shareholders will be able to sell their shares on ASX by quoting their Shareholder Reference Number (SRN) to their broker.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>
Wed, 11 May 2016 15:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/150035/bannerman-resources-ltd-completes-voluntary-de-listing-from-toronto-stock-exchange-68557.html
<![CDATA[News - Bannerman Resources demonstration plant continues to show positives ]]> https://www.proactiveinvestors.com.au/companies/news/125369/bannerman-resources-demonstration-plant-continues-to-show-positives-125369.html Bannerman Resources Limited (ASX:BMN, TSE:BAN, NSX:BMN) had a busy March quarter and made great strides in developing its now 100% owned Etango uranium project in Namibia, including positive results from the heap leach demonstration plant.

Etango is one of the few uranium projects in the world with a completed definitive feasibility study and environmental permitting.

The period also saw the group complete a corporate restructuring, including getting rid of A$12mln in convertible debt and raising A$12mln.

Last month, Brandon Munro was hired as chief executive and Werner Ewald was promoted to managing director in Namibia.

Significantly, results from the phase 3 heap leach demonstration  were similar or better than assumptions in the DFS and have shown clear potential to further reduce operating costs.

There was, for example around 93% extraction from a 90 tonne sample over 22 days, compared to an 87% projection in the DFS, while the consumption of sulphuric acid was low.

The product of recycling was also high purity, the firm noted.

The next step is phase 4 of the demonstration plant, to be completed this quarter, will assess the solvent extraction circuit.

This will be followed by phase 5, which will look at a variety of scenarios to test further cost reductions.

As at the end of March, the group had cash of A$2.5mln (Dec 31, 2015: AS$4.16mln)

The firm has applied to de-list the shares from the Toronto exchange, for various reasons, including limited trading.

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Thu, 28 Apr 2016 09:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/125369/bannerman-resources-demonstration-plant-continues-to-show-positives-125369.html
<![CDATA[News - Bannerman Resources Ltd to de-list from Toronto Stock Exchange ]]> https://www.proactiveinvestors.com.au/companies/news/150034/bannerman-resources-ltd-to-de-list-from-toronto-stock-exchange-68309.html Bannerman Resources Ltd (ASX:BMN; TSX:BAN; NSX:BMN) has applied for a voluntary de-listing of its securities from trading on the Toronto Stock Exchange.

Bannerman said the move is due to several factors, including the limited trading volume of its shares on the TSX over a sustained period of time, and the move will also provide regulatory and other cost savings.

Over a 12 month period to the end of March 2016, 90% of securities traded occurred on the ASX. While, about 3.5% of Bannerman’s shares are held on the Canadian register.

Subject to the application being accepted, it is expected that the company’s securities will be de-listed and therefore no longer traded on the TSX after close of trading on Wednesday 11 May 2016.

The de-listing date will be announced following confirmation from the TSX.

No change will occur to the quotation and trading of Bannerman shares on the Australian Securities Exchange or the Namibian Stock Exchange.

Bannerman is focussed on it uranium interests in Namibia, which includes the wholly-owned Etango project.

Etango is one of the world’s largest undeveloped uranium deposits.


Implications for holders on the Canadian register

In order to trade their securities on the ASX, Canadian beneficial holders will need to have their holdings transferred to the Australian share register.

Bannerman said that after the proposed de-listing date of 11 May 2016 and until a transfer to the Australian register is effected, shareholders on the Canadian register and beneficial shareholders holding their securities through a CDS participant/broker will not be able to trade their shares on the ASX and their holdings will remain on the Canadian share register.

Securities held on the Canadian register which have not been transferred by 10 June 2016 will automatically be transferred to an Issuer Sponsored Holding on the Australian share register.

Once this occurs, these shareholders will be able to sell their shares on ASX by quoting their Shareholder Reference Number (SRN) to their broker.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

]]>
Wed, 27 Apr 2016 17:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/150034/bannerman-resources-ltd-to-de-list-from-toronto-stock-exchange-68309.html
<![CDATA[News - Bannerman Resources Ltd updates results from uranium pilot plant in Namibia ]]> https://www.proactiveinvestors.com.au/companies/news/150033/bannerman-resources-ltd-updates-results-from-uranium-pilot-plant-in-namibia-67931.html Bannerman Resources Ltd (ASX:BMN; TSX:BAN; NSX:BMN) will look to lower operating and capital costs thanks to results from Phase 3 of the Heap Leach Demonstration Plant Program at its 100% owned Namibian uranium project, Etango.

The Phase 3 results are similar to or better than the assumptions used in the Etango Definitive Feasibility Study (DFS) providing for continued optimisations.

Phase 3 involved trial leaching of Etango ore in a configuration designed to mirror the set-up of a full-scale heap operation.  Not only did the results confirm the DFS assumptions – a significant step in further de-risking the project – but it bettered the DFS assumptions in several key areas including acid consumption and clarity of solution.

Etango is one of the few uranium projects in the world with a completed Definitive Feasibility Study that confirmed the technical, environmental and financial (at consensus long term uranium prices) viability of a large open pit and heap leach operation.

Etango is one of the world’s largest undeveloped uranium deposits replete with environmental permitting and will be a top 10 producer once developed within a strong de-risked uranium jurisdiction, Namibia.

Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter.

Current mine life of 16 years has significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth.


DFS optimisations

The leach extraction was faster and displayed higher recoveries resulting in a ~93% recovery from a 90 tonne sample over 22 days compared to the DFS projection of 87%.

On average 13.6 kg/tonne of sulphuric acid was consumed within the cribs compared with the DFS projection of 17.6 kg/tonne (that is, a 23% better performance than the numbers used in the DFS).

No metallurgical problems were encountered in the process due to clean and uniform material properties.

No evidence of build-up of deleterious elements occurring during the recycling of leach solution, which will result in a high purity product and presents an opportunity to change or remove the two pinbed clarifiers in the DFS flowsheet.

The growing metallurgical database now reflects large scale testing of 273 tonnes of material since commencement of the heap leach demonstration plant program in April 2015.


Heap Leach Demonstration Plant (Phases 1-5)

The plant program is an integral step towards the Etango project’s detailed engineering and financing phases.

Phase 1 - Commissioning (complete)
Phase 2 - Reproducibility (complete)
Phase 3 - Solution Recycle (complete)
Phase 4 - Solvent Extraction (In progress)
Phase 5 - Value Engineering (June Q, 2016 commencement)

The objective of Phase 4 is to demonstrate the solvent extraction process and assumptions in the DFS.

The objective of Phase 5 is to conduct optimisation studies in conventional crushed ore, binders and coarser crushed ore, which again will look to improve on project economics.


Analysis

Bannerman continues to optimise the DFS with a focus on reducing operating and capital costs, which in turn de-risks the Etango process route and adds to the significant body of high quality technical work that supports the Etango project.  

The Phase 3 results give Bannerman multiple avenues for revisiting key operating assumptions such as acid consumption (the largest reagent cost and second only to diesel as an operating cost sensitivity).  These results also raise opportunities to reduce capital costs, for instance through removing or changing the two clarifiers included in the DFS flowsheet.

We expect Bannerman to work these results into a further optimisation of the DFS that can incorporate any value engineering gains from Phase 4 and 5 of the Demonstration Plant, as well as further revisiting a set of operating cost assumptions that were embedded into the DFS during a global mining boom. 

Any significant operating cost wins would then enable review of grade cut-offs and pit design which may deliver further scale to an already massive project.

The size and scale as well as strategic location of Etango implies it is likely to be one of few uranium significant projects that can be brought into production to meet demand in the next two years.
 
Significantly, the Etango project is located near to Rio Tinto’s (ASX:RIO) Rössing uranium mine, Paladin Energy’s (ASX:PDN) Langer Heinrich uranium mine and CGNPC’s Husab uranium mine - under construction, providing a platform for strategic partnering and future off take discussions.

In summary, the Etango heap leach demonstration program is a key step toward project de-risking, financing and project development.  Demonstration Plant results have thus far confirmed one of Etango’s key advantages: the ability of the Etango ore to leach quickly with low acid consumption and no complications positions Etango as a remarkably simple project.  

Further, as confidence in Etango’s technical simplicity increases – and therefore delivery of uranium at an incentive price becomes more certain – the massive scale of Etango can be valued for its in-ground stockpile. 

Bannerman’s leverage to increasing uranium prices is second to none.  Additionally, Etango has a substantial value even in current depressed prices owing to its capacity to offer future supply certainty to the world’s largest current and future consumers of nuclear fuel.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 07 Apr 2016 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/150033/bannerman-resources-ltd-updates-results-from-uranium-pilot-plant-in-namibia-67931.html
<![CDATA[News - Bannerman Resources Ltd CEO steps down ]]> https://www.proactiveinvestors.com.au/companies/news/150032/bannerman-resources-ltd-ceo-steps-down-67409.html Bannerman Resources Ltd (ASX:BMN,TSX: BAN) has announced that chief executive officer, Len Jubber will step down after 7 years which included completion of the Etango Definitive Feasibility Study and the building and operation of the Etango Heap Leach Demonstration Plant in Namibia.

Jubber has resigned to pursue other business interests and under his watch also completed the corporate transactions in 2015 that have resulted in the company owning 100% of Etango and becoming debt free.

Brandon Munro has been appointed as managing director and chief executive officer after serving as general manager – corporate development and general manager (Namibia) between 2009 and 2011.

Munro is a non-executive director of ASX-listed technology companies Rewardle Holdings Limited (ASX:RXH) and Novatti Group Limited (ASX:NOV).

He serves as a Trustee of Save the Rhino Trust, a high-profile Namibian NGO.

Ronnie Beevor, chairman of Bannerman, said: “The Board is very pleased to be appointing Brandon as Managing Director and CEO - someone who has previously worked for Bannerman, who has lived in Namibia and who has built up extensive relationships with the Namibian Government and the wider community.

"He has overseen the completion of the Etango Definitive Feasibility Study, the building and operation of the Etango Heap Leach Demonstration Plant that has more than confirmed the rapid heap leaching characteristics of the Etango orebody, and the recent Optimisation Study work on the DFS."


Milestones

During the December quarter, an optimisation study significantly reduced the Etango operating and capital costs and increased the first 5 full production year's profile.

The A$12 million convertible note debt was eliminated and the company is debt free. It raised A$4 million in new funding including an equity placement of approximately 63.3 million new Bannerman shares to RCF VI at A$0.0474 per share.

The Etango project ownership is now 100% owned by Bannerman through acquiring 20% vendor interest.

Results from Phase 2 of the Heap Leach Demonstration Plant Program further highlighted the robustness of the Etango DFS and optimisation study.

Jubber created a strong platform from which to engage with parties interested in participating in the development of the Etango project.

 

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 09 Mar 2016 13:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/150032/bannerman-resources-ltd-ceo-steps-down-67409.html
<![CDATA[News - Bannerman Resources goes debt free, adds $3M to uranium budget ]]> https://www.proactiveinvestors.com.au/companies/news/150031/bannerman-resources-goes-debt-free-adds-3m-to-uranium-budget-66410.html Bannerman Resources (ASX:BMN; TSX:BAN; NSX:BMN) has formally taken 100% control of its Etango uranium project in Namibia, establishing the company as debt free and funded for the operation of a demonstration plant and working capital needs.

Following up on an ownership consolidation move first announced in October, Bannerman has confirmed the acquisition of a 20% additional interest in Etango, the extinguishing of its debt and completion of a new funding arrangement.

The transactions entailed acquisition of the minority interest in Etango from the current owners (represented by Mr Clive Jones) for payment of approximately 123.4 million new Bannerman shares and A$1 million in cash.

The manoeuvre also involved the extinguishment of the A$12 million convertible notes through a conversion of A$8 million of the convertible notes held by Resource Capital Fund into Bannerman shares at the given conversion price of A$0.075 per share and the sale of a 1.5% royalty over Etango to RCF for A$6 million.

Sale of the royalty includes A$2 million in cash and extinguishment of the residual convertible notes held by RCF (comprising A$4 million).

Importantly, a $3 million capital raising through an equity placement of about 63.3 million new Bannerman shares at A$0.0474 per share to RCF has also been arranged.
 
The development is considered a significant step in the funding of Etango and an encouraging sign of support by a major investor in the company.


Etango progress

Completion of the corporate restructuring follows closely on from the Definitive Feasibility Study Optimisation Study released in November, which significantly enhanced Bannerman’s early mover advantage at a time when the global focus was once again focused on the need for more clean energy.

The optimisation resulted in a dramatic improvement of the project’s net present value form US$69 million to US$419 million, with production averaging 7.2 million pounds of U3O8 a year over an initial 15.7-year open pit mine life.

The new demonstrate plant work has underlined the feasibility of this outlook with fast and high leach extraction on a 60-tonne sample.

Average Total leach extraction ranged from 91% to 93% during the trials, compared to an 87% rate projected in the DFS.

Success in process plant demonstrations has coincided with studies which have outlined a 17% reduction in life-of-mine operating costs to US$38 per pound of U3O8 and a 9% reduction in pre-production capital costs to US$793 million.

Post-tax internal rate of return has also improved from 9% to 15%, with payback from first production now expected in 4.4 years.

Total operating cashflow has been estimated at US$3.7 billion before capital and tax, while free cashflow of US$1.6 billion is expected after capital and tax.

Peak annual free cash flow is contemplated at US$392 million.

Bannerman can also reduce upfront capital by about US$56 million through the use of leased equipment in its fleet.

Importantly, the streamlined economics at Etango are supported by both better-than-expected results from the heap leaching operation, logistics improvements and enhanced mining metrics, including a reduction of strip ratio from 3.3 in the original DFS to 2.8.

This will flow from a 16.4% increase in annual output during the first five full years of production to 9.2 million pounds of U3O8.

Measured and indicated resources at Etango total 165 million pounds of U3O8.


Analysis

The transactions with RCF deliver Bannerman a debt free balance sheet with new funding for 2016 that allows Etango to be taken to the next stage.

In addition to the greater economic interest, consolidation of the holding structure in Etango is expected to provide considerable structural benefits when project financing is sought for development.

The establishment of a 1.5% royalty over Etango as part of the proposed elimination of the debt and a capital raising is a pragmatic solution to the A$12 million convertible notes which are otherwise due for repayment by September 2016.

That RCF has elected to take additional equity at almost $0.05 per share reflects RCF's support and highlights its confidence in the upside in Bannerman shares, which currently appear highly undervalued.


Proactive Investors is a global leader in financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 04 Jan 2016 10:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/150031/bannerman-resources-goes-debt-free-adds-3m-to-uranium-budget-66410.html