The access road to the mine entrance as at July 2024.
Construction update
BANNERMAN ENERGY | AUG 2024
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