Bannerman Energy spent N$33.5 million (A$2.7 million) on exploring and developing the Etango Uranium Project in Namibia in the quarter that ended March 31, 2024.
The company says all Etango-8 cost estimates, including pre-production capex of about N$6.1 billion (US$320 million), remained materially unchanged for the Etango expansion and extension scoping study.
Bannerman’s cash balance was N$393 million (A$31.7 million) as of March 31, 2024, compared to N$437 million (A$35.2 million) as of December 31, 2023.
During the quarter ended March 31, 2024, Bannerman completed the Etango expansion (XP) and extension scoping study, which evaluated two future phase options to each produce 95.2 Mlbs U3O8 over the life of mine.
The Etango-XP seeks to expand throughput capacity to 16 Mtpa after construction and ramp-up of the base case, increasing average annual production from 3.5 Mlbs to 6.7 Mlbs U3O8 post-expansion.
The Etango extension wants to increase the mine’s operating life from 15 to 27 years without expanding throughput capacity.
Bannerman Resources says the key Etango Project workstreams ‒ Front End Engineering and Design (FEED) – are highly advanced and on target to complete during the second quarter of 2024.
The dry plant process simulation was finalised, and vendor information was included for the leading mechanical equipment.
The dry plant’s mass and water balance, piping, and instrument diagrams have been completed, and good progress has been made on the wet plant section.
Mechanical packages have all been received back from the market, and adjudications of the structural, mechanical, and piping packages have been completed.
Packages for bulk earthworks and concrete have been adjudicated, and the final recommendation has been made for award. The rips dump design optimisation is on track to incorporate the selected vendor conveyor solution.
A surface water management study was commissioned to review the current design and ensure the effectiveness of any potential flood mitigation measures.
The early works contracts for the construction water supply and the mine access road are on schedule to achieve the planned completion date of July 2024.
Bannerman executive chairman Brandon Munro said the strong progression in project workstreams during the quarter steadily advanced the fully permitted Etango project towards construction, in parallel with financing and offtake marketing workstreams, as we drive towards being in a position to take a positive Final Investment Decision.
“We were particularly pleased to demonstrate, via the Etango-XP/XT Scoping Study, the long-term optionality afforded by our large-scale Etango resource and a clear pathway towards becoming a 6.7 Mlbs pa producer,” Munro said.
