Scoping Study confirms potential higher output and extended life of mine for Etango
Bannerman Energy has established through an extensive scoping study that production at its intended Etango uranium mine in Erongo can nearly double and that the mine’s operating life can be stretched from 15 to 27 years.
“The [scoping study] confirms the robust technical and financial viability of two future phases: Etango-XP, involving an expansion in throughput capacity to 16 Million tonnes per annum (Mtpa), and Etango-XT, extending the operating life from 15 to 27 years,” Bannerman said in a statement announcing the results of the study.
Bannerman is a uranium development business with operations in Australia and Namibia. Its flagship asset, the Etango Uranium Project, is located in the dominant uranium district in the Erongo region. The company is listed on the Australian Stock Exchange and on the Namibian Stock Exchange, and trades on the OTCOX market in the United States.
Bannerman’s Chief Executive, Gavin Chamberlain, emphasized the company’s commitment to developing the world-class Etango Project at an initial 8 Mtpa throughput 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,” he said.
Etango has benefitted from extensive exploration activity and feasibility studies over the past 15 years, with a Definitive Feasibility Study (DFS) completed in December 2022 confirming its strong technical and economic viability.
The scoping study which evaluates the prospect for future higher throughput and extension of the mine’s operating life, 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,”
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 5, 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). This translates to 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.
