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),” 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 N$5.7 billion (US$325M), 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 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 US$45.3 per pound of uranium,” he said.
The Chairman highlighted the cost estimates for Etango, which include pre-production capital expenditure of approximately (N$5.7 billion) US$320 million, remain relatively stable, while the heightened operating expenditure projections associated with Etango-XP/XT are primarily attributed to increased strip ratios.
Munro added: “While the XP and XT cases are readily viable at our base case Etango-8 DFS price assumption of US$65/lb, their economics are clearly supercharged in higher price scenarios. As such, what the Scoping Study emphatically evidences is the significant underlying value residing in Etango’s huge in-ground leverage to, and scalability with, higher uranium price outlooks.”
Moving forward, he said, the feasibility work on Etango-XP and Etango-XT options can be expedited efficiently, leveraging the extensive groundwork already completed during previous DFS-level project evaluations, covering resource drilling, geotechnical, metallurgical, process, and environmental assessments.
Meanwhile, Bannerman’s Chief Executive Officer Gavin Chamberlain emphasised the company’s commitment to developing the world-class Etango Project at an initial 8Mtpa 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