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."