The access road to the mine entrance as at July 2024.
Construction update
BANNERMAN ENERGY | AUG 2024
True value of Etango
Managing Director of BMRN, Werner Ewald (pictured right), was
invited to speak at the *CNNC Rössing Uranium 2023 Sustainability
and Performance Conference in June. The title of his presentation
was “Unlocking the value of Bannerman’s Etango deposit”. While
he impressed delegates with the resource size and the possibility of
expanding or extending the mine life, as well as the test work proving
that the deposit is well suited for heap leaching, he dwelled on the
‘true value’ of the project. These included a zero-incident safety record,
Bannerman being the first mining company to support any tourism-
related venture, and the company’s environmental remediation. Its Early
Learner Assistance programme, which has benefitted over 3 500 learners
across six regions of Namibia, is a particular source of pride.
*CNNC = China National Nuclear Corporation
built the access road and water pipeline, it makes
sense for them to continue with this work.
The second contract, to build the powerline
and install the associated electrical switchgear
necessary for the construction work on site,
will be awarded shortly. This will certainly be
awarded to a local contractor.
The third will be for the bulk earthworks
which include the heap leach pad, terracing
and the ripios disposal site. This contract has
been adjudicated and contract finalisation is in
progress.
Project update
oth new and existing investors have faith in
the Etango-8 Project, and have demonstrated
this by committing A$85 million to further
develop the project.
Funds raised from this two-tranche placement
of shares will go towards detailed design, early
works (including construction infrastructure,
earthworks and selected long-lead items), and
general working capital. These activities will
advance Etango to the Final Investment Decision
during the second half of 2024.
“We are excited by the support we have
received from investors, both for our project
and the way our company has steered this asset
in the rapidly strengthening uranium market.
Proceeds from this placement will enable us to
further progress our Etango-8 Project, following
positive outcomes from the recently announced
Front End Engineering and Design (FEED) and
Control Budget Estimates (CBE) processes,” says
Brandon Munro, Bannerman Energy’s Chairman.
Three follow-up contracts will be awarded.
The one, for extending the road network on
the site (from the entrance gate where the access
road ends to the various areas on the mine site),
will go to local contractor Namibbeton. As they
CONFIDENCE BOOST FOR NAMIBIAN ECONOMY
Benefits of heap leaching
Heap leaching is a low-cost process to recover precious metals, such as gold,
copper and uranium, from their primary resources (ores and minerals). It is an
effective and economical solution for the environment and produces only minor
emissions from furnaces. The cost of the heap leaching process is low, making
this process an attractive option from a financial standpoint.
True value is only achieved if we can do this work
safely, taking the environmental aspects into
account, and working closely with our community.
esides getting the Etango mine built, the project team has one
esides getting the Etango mine built, the project team has one
main goal: to derisk and simplify the future construction as much as
main goal: to derisk and simplify the future construction as much as
possible.
possible.
One way to achieve this is with front-end engineering and design (FEED), a
One way to achieve this is with front-end engineering and design (FEED), a
process that was completed in July. Dynamic simulation modelling, carried
process that was completed in July. Dynamic simulation modelling, carried
out by an independent industry expert, identified any issues with sizing or
out by an independent industry expert, identified any issues with sizing or
specifications of equipment that could impact on throughput targets.
specifications of equipment that could impact on throughput targets.
“This process is highly valuable as we move towards construction,” informs
“This process is highly valuable as we move towards construction,” informs
Gavin Chamberlain, CEO of Bannerman Energy. “Improved certainty of
Gavin Chamberlain, CEO of Bannerman Energy. “Improved certainty of
design related to the inter-relationship between selected mechanical
design related to the inter-relationship between selected mechanical
equipment can help shave cost estimates.”
equipment can help shave cost estimates.”
Technical changes were made, in particular, to the communition circuit
Technical changes were made, in particular, to the communition circuit
design (the crushing process), which is a crucial component to the
design (the crushing process), which is a crucial component to the
processing of ore for heap leach operations.
processing of ore for heap leach operations.
“We now also have a more detailed construction schedule, which supports
“We now also have a more detailed construction schedule, which supports
a shorter timeline between Final Investment Decision (FID) and the start of
a shorter timeline between Final Investment Decision (FID) and the start of
construction,” says Gavin. “This gives confidence that we can add further
construction,” says Gavin. “This gives confidence that we can add further
value through improved technical viability or reduced operating costs.”
value through improved technical viability or reduced operating costs.”
Etango’s Definitive Feasibility Study (DFS) was based on mid-2022 prices.
Etango’s Definitive Feasibility Study (DFS) was based on mid-2022 prices.
Remarkably, a Control Budget Estimates (CBE) process has shown that
Remarkably, a Control Budget Estimates (CBE) process has shown that
not much has changed. “The total pre-production capital estimate has
not much has changed. “The total pre-production capital estimate has
increased by 11.3%, which included incremental scope changes that have
increased by 11.3%, which included incremental scope changes that have
further derisked the project. Even more noteworthy, there was just a 2.6%
further derisked the project. Even more noteworthy, there was just a 2.6%
increase in forecast operating costs. This is an outstanding result that is
increase in forecast operating costs. This is an outstanding result that is
testament to the high quality of the DFS,” informs Gavin.
testament to the high quality of the DFS,” informs Gavin.
2.6%
Increase in forecast operating costs
The value of project-readiness
Through the FEED process, any issues with equipment can be sorted
out before the mine is built. By being ready for construction, any
time lost between the final investment decision (FID) and full-scale
production of uranium by 2027 is minimised.
FEEDING CERTAINTY,
GROWING
CONFIDENCE
Support received from investors to further develop
the Etango-8 Project, including earthworks,
procurement and manufacturing of long-lead items,
product marketing and project financing.
A$85 million