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Bannerman Energy says its Scoping Study reveals potential 27-year mine life for the Etango Uranium Project with expansion phases. The study underscores the strong technical and financial feasibility of Etango-XP, boosting throughput capacity to 16 million tonnes per annum (Mtpa), and Etango-XT, extending the project’s lifespan from 15 to 27 years.
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 16Mtpa starting from year five, 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), stated Bannerman Executive Chairman Brandon Munro said.
He added that this translates to an annual average output of 6.7Mlbs of U3O8 and the expansion phase capital expenditure for Etango-XP is estimated at USD 325M, with a corresponding LOM average operating cost (AISC) of USD 42.5 per pound of uranium. Conversely, the Etango-XT scenario, maintaining a throughput of 8Mtpa projects a LOM U3O8 output of 95.2Mlbs over 27 years, with an annual average uranium output of 3.5 Mlbs without requiring additional capital expenditure, with a LOM average AISC of USD 45.3 per pound of uranium.
The Chairman highlighted the cost estimates for Etango, which include pre-production capital expenditure of approximately USD 320 million, remain relatively stable, while the heightened operating expenditure projections associated with Etango-XP/XT are primarily attributed to increased strip ratios.
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.
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The Etango Uranium Project is located in the Erongo Region of Namibia, 30 kilometers south-east of Swakopmund. It possesses a world-class uranium Mineral Resource endowment of 207 Mlbs of contained U3O8 (100ppm U308 cut-off). Etango has benefited from extensive exploration and feasibility activity over the past 15 years. This includes detailed feasibility work on a large-scale development of Etango that culminated in the 2012 Definitive Feasibility Study (DFS 2012) and 2015 DFS Optimisation Study (OS 2015).
