Bannerman Energy has announced the successful completion of a Scoping Study evaluating potential expansion options for its flagship Etango Uranium Project in the Erongo region.
The study highlights the robust technical and financial viability of two future phases, namely Etango-XP, involving an expansion in throughput capacity to 16 million tonnes per annum (Mtpa), and Etango-XT that extends the operating life from 15 to 27 years.
Bannerman is a uranium
development business with operations in Australia and Namibia.
Commenting on the results of the study, Bannerman’s chief executive officer, Gavin Chamberlain, emphasised the company’s commitment to
developing the world-class Etango Project at an initial 8Mtpa throughout scale.
“As evidenced by the announced outcomes, the scoping study has categorically demonstrated this further growth optionality. In short, the long-term scalability of the world-class Etango resource remains highly robust under the base case Etango-8 approach to initial project development,” Chamberlain stated.
Bannerman Executive Chairman, Brandon Munro, added; “I am delighted that we have more formally demonstrated the longer-term optionality delivered by our large-scale Etango uranium resource. While the XP and XT cases are readily viable at our base case Etango-8 DFS price assumption of US$65/lb, their economics are clearly supercharged in higher price scenarios. As such, what the Scoping Study emphatically evidences is the significant underlying value residing in Etango’s huge in-ground leverage to, and scalability with, higher uranium price outlooks.”
In a statement issued on Monday this week, the company has noted that it is committed to sustainable development and best-practice governance in all aspects of its business. Bannerman, listed on the Australian and Namibian stock exchanges and traded on the OTCQX Market in the United States, holds the advanced Etango Uranium Project as its flagship asset.
Etango has benefited from extensive exploration and feasibility activity over the past 15 years, with a Definitive Feasibility Study (DFS) completed in December 2022 confirming its strong technical and economic viability. The company has been recognised for its Environmental, Social, and Governance (ESG) leadership in the uranium and nuclear energy sector, receiving the 2023 African Mining Indaba’s ESG Award for Community Engagement.
“The scoping study, aimed at evaluating future higher throughput and operating life cases for Etango, reinforces Bannerman’s commitment to the timely development of the Etango-8 project. The company remains focused on advancing Front End Engineering and Design (FEED), offtake marketing, and strategic financing workstreams for the base case 8 Mtpa Etango development,” reads a statement from Bannerman.
Key findings from the Scoping Study highlight the potential of both Etango-XP and Etango- XT. Under the Etango-XP scenario, with an expanded throughput to 16 Mtpa starting from year five, the project could yield a significant amount of uranium over 16 years, with a Life of Mine (LOM) U3O8 (uranium oxide) output of 95.2 million pounds (Mlbs).
According to Bannerman, this translates into an annual average
output of 6.7 Mlbs of U3O8. The expansion phase capital expenditure for Etango-XP is estimated at US$325 million, with a corresponding LOM average operating cost (AISC) of US$42.5 per pound of uranium.
Conversely, the Etango-XT scenario, maintaining a throughput of 8 Mtpa projects a LOM U3O8 output of 95.2 Mlbs over 27 years, with an annual average uranium output of 3.5 Mlbs without requiring additional capital expenditure, with a LOM average
AISC of US$45.3 per pound of
uranium.
Bannerman further stated that the cost estimates for Etango, which include pre-production capital expenditure of approximately US$320 million, remain relatively stable, while the heightened operating expenditure projections associated with Etango-XP / XT are primarily attributed to increased strip ratios.
Moving forward, the feasibility work on Etango-XP and Etango-XT options can be expedited efficiently, leveraging the extensive groundwork already completed during previous DFS-level project evaluations, covering resource drilling, geotechnical, metallurgical, process, and environmental assessments.