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Bannerman conducts revised feasibility study for Etango
Bannerman Energy intends to develop its Etango mine within the next two years.Photo: Contributed

Bannerman conducts revised feasibility study for Etango

Bannerman Energy has conducted a revised feasibility study for its Etango uranium project, which strengthens the development of the mine.

“The early development of our Etango-8 project is progressing well, with positive outcomes from the front-end engineering and design (FEED) and control budget estimate (CBE) processes.

"The FEED work has confirmed the high quality of the technical evaluation and design, as detailed in the December 2022 definitive feasibility study (DFS). Finalising the CBE has demonstrated the robustness of the DFS cost estimates, evidenced by the lack of significant increases in forecast construction or operating costs," CEO and president Brandon Munro explained.

"Additionally, the moderate increase in forecast pre-production capital is attributed to design enhancements that deliver cost efficiencies and reduce operating risks.”

The outcomes from both the FEED and CBE processes indicated a strong reinforcement of overall quality of Etango-8 design, along with significant further de-risking of project development and execution profile, improved estimation accuracy of approximately 10% through offers received from a competitive tender process for over 80% of the total Etango-8 capital costs and CBE pre-production capital forecast of US$353.5 million, which showed a modest 11.3% increase on the DFS estimate, Munro said of the outcomes.

Total mining operating cost based on competitive contract tenders decreased by 2.1% from US$2.36 per tonne (t) material mined in the DFS of US$857 million through the life of mine (LOM), to the US$2.31/t material mined in the CBE of US$839 million LOM. The tender quotations accounted for updated costs of mining consumables including diesel.

“Bannerman has now commenced the first stage of detailed design for Etango-8, with Wood, Etango’s lead engineering consultant, and CREO, the Namibian technical owner’s team consultant, proceeding with finalising the bulk earthworks design,” Munro said.

He also indicated that early works on the Etango access road and construction water pipelines are proceeding well, with both due for completion in July.

“These two contracts are seen as natural enablers for the subsequent placement of the bulk earthworks contract,” he added.

Bannerman in April indicated it would require N$7 billion to develop its Etango uranium mine. Studies indicate that it can potentially create 760 jobs over its 15-year LOM.

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