Bannerman Resources says it will move quickly and immediately with works on two contracts valued at N$36m (about US$2m) after the mines ministry granted a mining licence for the Etango-8 uranium project.
The contracts have been awarded to a local Namibian contractor after a tender process undertaken earlier this year.
Bannerman said the prompt award and commencement of these early works contracts enable the company to maintain the current target construction schedule for Etango-8.
The mines ministry granted Bannerman mining licence 250 for the Etango-8 project, with a mineral resource endowment of 207 Mlbs of contained U3O8 (100ppm U308 cut-off).
Bannerman applied for the licence in early August 2022.
In a statement Thursday, Bannerman said the licence granting allows the company to move immediately to award two key early works contracts on Etango-8 to build the temporary construction water supply and the site access road.
The company also said the temporary water pipeline construction will ensure sufficient water is available onsite when the prominent earthworks and civil contracts commence.
The access road will enable controlled access to the mine site with minimal impact on the surrounding area to be achieved from the start of complete construction works.
Bannerman CEO Brandon Munro said the grant of the Etango Mining Licence represents a milestone event for the company and its valued stakeholders.
Munro also said this is a culmination of Bannerman’s unwavering focus on Etango since the initial investment in 2006.
“Etango is now fully permitted, enabling us to drive key project workstreams towards a Final Investment Decision in parallel with the ongoing strengthening in uranium market fundamentals. I am grateful to the Ministry of Mines and Energy for their ongoing commitment to Etango’s success,” Munro said.
Bannerman Chief Operating Officer Gavin Chamberlain said the overall construction schedule remains on track, with this final project permit now complete and the front-end engineering and design work meeting our most optimistic expectations.
Chamberlain added that establishing a site commencing in January, with early works construction proceeding in parallel with other workstreams over the next four to six months.
“I look forward to the next phases of building a uranium business that will deliver significant and long-lasting benefit to all of our key stakeholders, including the Namibian economy and people,” Chamberlain said.
The Journey
The main uranium-enriched zones in the Etango Project are the Anomaly A, Oshiveli and Onkelo Prospects, previously referred to as the Goanikontes area.
These three prospects form a five-kilometre-long contiguous zone of uranium mineralisation.
The Anomaly A, Oshiveli, Onkelo (historically referred to as Rabbit Valley) and Rössingberg Anomalies are identified in historic reports and papers, dating from the 1970s.
Bannerman Resources’ journey to getting the mining licence for Etango-8 started in May 2005 when the company acquired 80% of a privately held Namibian company, Turgi Investments Pty Ltd.
Turgi Investments held prime assets comprising eight mineral licence applications covering over 570,000 hectares in the central Swakopmund district.
Six of the eight applications had competing applications, whilst two – Welwitschia under EPL 3345 and Onaries under EPL 3347 – covered the ground.
Welwitschia covered the Goanikontes and Rössing Mountain uranium prospects, approximately 20 kilometres to the west-southwest of the Rössing mine.
Geology and data then indicated that the exploration target at the Goanikontes prospect ranges from 10 to 200 at low average grades (200-300g/t U3O8) typical of alaskite-hosted mineralisation.
Onaries, which covers an area of 823 km2, hosts three known uranium occurrences and is about 30km east-southeast of the Langer Heinrich uranium mine.
The deal with Turgi was contingent on successfully granting EPL Welwitschia EPL 3345 and Swakop River 3345, with any other applications granted considered bonuses.
Bannerman paid a non-refundable fee of US$40,000 upon signing to secure the exclusive right to the interest in Turgi, issue 3.5 million fully paid shares, and issue various unlisted options.
In November 2005, the mines ministry granted Bannerman’s Namibian partner, Turgi Investments, a licence for the Onaries, while the licences for Welwitschia EPL 3345 and Swakop River EPL 3346 were granted in May 2006.
According to the agreement, Bannerman became a 100% shareholder after Turgi Investments successfully applied for the licences, which allowed Bannerman to start with drilling programmes at the prospects.
Bannerman Resources registered its subsidiary, Bannerman Mining Resources Namibia.
The 2007 High Court challenge
In May 2007, Bannerman announced that the Goanikontes uranium deposits Interim Inferred Resource was 27m lbs (12,200t) U3O8 contained within 55Mt at a grade of 219ppm U3O8, with a higher grade core of 21Mt at 308 ppm U3O8.
Bannerman confirmed its intention to expedite studies into developing its Goanikontes Uranium Project in Namibia and engaged the services of Coffey Partners to undertake a scoping study of the project.
A company called Savanna Marble CC took Bannerman and the mines minister to court in December 2007, seeking an order to review and set aside the minister’s decision to grant Bannerman Namibia Licence EPL3345 with exclusive mineral rights over the area covered by Savanna’s EPL3045.
Savanna’s licence only entitled it to mine stone dimension stone and not to explore for or mine any nuclear fuel minerals.
To avoid a full-blown trial, Bannerman Mining Resources Namibia settled the Savanna Marble issue in December 2008 by offering A$3.5 million cash and 9,500,000 fully paid ordinary shares in Bannerman.
2008
The Goanikontes Anomaly A resource was updated in January 2008 to 72.2 Mlbs U3O8 from 26.9 Mlbs U3O8 to 72.2 Mlbs U3O8 in 2007. On 2 April 2008, Bannerman Resources started trading on the Namibian Stock Exchange.
2009
In February, Bannerman Resources announced that the Etango project’s indicated resource had increased by 33% from 66.9Mlbs to 89.2Mlbs U3O8, with the Inferred Resources of 37.4Mlbs U3O8.
In May, the mines ministry renewed the EPL 3345 for two years, and the Board approved the work on the Definitive Feasibility Study following positive results from the Preliminary Feasibility Study (PFS).
The PFS concluded that the preferred route is agitated-tank leaching of a high-grade (3,500-4,000ppm U3O8) flotation concentrate and a pre-tax internal rate of return of 22% for flotation concentrate leaching and payback period of 3-4 years based on a long term uranium price of US$70/lb U3O8.
The study estimated that production would start in late 2013, with a modelled output of 5-7Mlbs U3O8 per annum over a +16-year mine life, with expected capital costs of US$555m for flotation concentrate leaching.
Bannerman applied for the Etango (EPL 3345) mining licence in December 2009. The company also simultaneously applied for the Environmental and Social Impact Assessment with the environment ministry.
2010
In March, Bannerman updated the Etango mineral resource estimate, comprising Measured & Indicated Resources of 142.1Mlbs U3O8 at an average grade of 223ppm U3O8 and Inferred Resources of 20.0Mlbs U3O8 at a middle grade of 216ppm U3O8.
The company appointed Monica Kalondo (now Namibia’s First Lady) as a non-executive director of Bannerman Mining Resources (Namibia) (Pty) Ltd in October.
In the same month, Bannerman said the Etango Project’s measured and indicated resources totalled 336.2Mt at 201ppm for 148.7Mlbs U3O8 and Inferred resources total of 164.6Mt at 176ppm for 63.9Mlbs U3O8 at a cut-off grade of 100ppm U3O8.
The results of a feasibility study released in December comprised measured and indicated resources for the Etango project was 149Mlbs U3O8 and inferred resources of 64Mlbs U3O8, with expectations to produce an average of 5-7Mlbs U3O8 per year over a +20-year mine life at an estimated average life-of-mine cash cost of US$42/lb U3O8.
The estimated capital costs were US$638m before the mining fleet and working capital, including a proportion of desalinated water infrastructure capital.
2011
The subsidiary of Chinese conglomerate Sichuan, Hanlong Mining Investment, approached Bannerman in July with a proposal to acquire 100% of the company for A$0.612 cash per share.
The Hanlong proposal was subject to the completion of due diligence on or before 30 September 2011 and receiving Chinese approvals, including obtaining support from major shareholders.
In the same month, the environment ministry approved Bannerman’s environmental clearance for off-sight such as the road, rail, power lines, telecommunications and a water pipeline.
Bannerman announced in October that the Hanlong deal had fallen flat after the China Development Bank took too long to approve the conditions.
2012
In April, the state-owned Epangelo signed an agreement with Bannerman to take up an initial 5% interest in Bannerman’s Namibian subsidiary, Bannerman Mining Resources Namibia.
Epangelo had four months to obtain the necessary acquisition finance from the Development Bank of Namibia or another financing institution and appoint a representative to the board, who would step down if the state-owned company failed to meet the requirements.
The agreement also entailed that Bannerman would give Epangelo a loan if it failed to get funding from the bank. The loan will accrue interest at LIBOR+6% pa and be secured via a pledge over Epangelo’s shares.
The environment ministry issued Bannerman Mining Resources Namibia an environmental approval for the Etango Uranium Project to complement the off-sight approval granted in 2011.
The environmental approval was necessary to obtain a mining licence for the Etango Project, which Bannerman would use to apply for the licence.
In August, Bannerman announced that Epangelo failed to meet the requirements to acquire the 5% interest in Bannerman Mining Resources Namibia.
2013
The mines ministry renewed EPL 3345, under which the Etango Uranium Project falls in June.
2014
Bannerman Resources announced in April that Resource Capital Fund VI LP has agreed to provide an A$4m convertible note facility to support the construction and operation of a pilot plant at the Etango Project, subject to shareholders’ approval.
The pilot plant capital cost was estimated at A$1.2m and is expected to operate for at least 12 months at approximately A$50,000 per month.
In July, Bannerman Resources said it had drawn down the A$4 million funds secured under the new convertible note facility that Resource Capital Fund VI LP provided.
Bannerman awarded the major contracts to construct and operate the Etango heap leach demonstration plant in September, with construction expected to commence by early 2015.
2015
February: The Etango Heap Leach Demonstration Plant was completed on 24 March 2015.
December: Bannerman Resources filed the Technical Report on the Etango Uranium Project with the Canadian securities regulators. The report was a comprehensive summary of the Optimisation Study (OS) on the geological modelling and mine planning aspects of the Etango Definitive Feasibility Study compiled in April 2012.
The OS enhanced the project economics and reinforced Etango as a globally significant uranium project with an average annual forecast production of 7.2 million pounds U3O8 per year over a 15.7-year mine life.
December: Bannerman became the 100% shareholder in the Etango project after acquiring the 20% minority interest in the Etango Project for 123.4 million new Bannerman shares and A$1 million in cash.
2016
March: Bannerman appoints Brandon Munro as managing director and CEO. Munro succeeded Len Jubber, who resigned.
July: The mines ministry renewed EPL 3345 until April 2017. One of the renewal terms was for Bannerman to submit a proposal for local Namibian ownership, employment of historically disadvantaged Namibians and a broader corporate social responsibility plan.
Bannerman said the mines ministry indicated that its mining licence application – 161 – applied for in December 2009 would be rejected because of the low uranium prices.
December: Monica Kalondo (now Geingos) stepped down as a non-executive director. Bannerman appointed Twapewa Kadhikwa to replace Monica Kalondo.
2017
March: Bannerman Resources entered into a subscription agreement with Monica Geingos’ One Economy Foundation to become a 5% loan-carried shareholder in the Etango Project.
Bannerman Mining Resources (Namibia) issued 5% of its ordinary share capital to the One Economy Foundation for par (nominal) value.
Bannerman Resources Limited owns the remaining 95%.
The One Economy Foundation will be loan carried for all future project expenditures, including pre-construction and development expenditures, with the loan capital and accrued interest repayable from future dividends.
August: The mines ministry renewed the EPL 3345 until 25 April 2019.
October: Bannerman received a mining retention licence for the Etango project, covering 7,295 hectares, including the Etango ore body, two satellite deposits at Hyena and Ondjamba and all planned mine infrastructure.
The Retention Licence provides solid and exclusive tenure rights and the right to continue with exploration or development work.
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 will improve sufficiently to enable profitable mining.
November: The Etango Processing Optimisation Study estimated Etango’s processing-related capital cost savings (+/-30%) at US$73m and reduced the operating costs.
2018
November: Bannerman started a reconnaissance drilling program on its EPL 3345, north of the Etango uranium project.
2019
May: The mines ministry renewed EPL 3345 until 25 April 2021.
2021
July: The mines ministry renewed EPL 3345 until 25 April 2023.
July: Bannerman Resources changed its name to Bannerman Energy.
August: The Etango-8 Pre-Feasibility Study was completed, showing a maiden Ore Reserve of 117.6 Mt at 232 ppm U3O8 for 60.3 Mlbs U3O8.
The Life-of-mine (LOM) production was 52.9 Mlbs U3O8 over 15 years, with an annual average production of 3.5 Mlbs U3O8 (SS: 3.5 Mlbs).
The forecasted pre-production capital expenditure was US$274m, delivering an attractive upfront capital intensity of approximately US$78/lb average annual U3O8 production.
October: The environment ministry renewed the environmental clearance for the proposed Etango Uranium Mine for three years.
The Environmental Clearance for the proposed Etango Uranium Mine was granted in 2012 and had been renewed on two previous occasions.
2022
August: Bannerman Energy lodged its mining licence application for the proposed Etango-8 uranium mine with the mines ministry.
