Modern Mining April 2015

MINING News

Bannerman’s Etango heap leach demonstration plant opened

Feasibility on Namibian uranium project completed Forsys Metals Corp has announced the results of a Feasibility Study (FS) for its wholly-owned Norasa uranium project located in the Erongo region of Namibia. The FS, completed by engineering consul- tants, Amec Foster Wheeler, together with reliance on other experts in the fields of min- ing and environment and company qualified persons, has confirmed the robustness and economics of Norasa. Highlights of the FS include a material increase in mineral reserve estimates to 90,7 million lb of U 3 O 8 , up 14,8 % from 79,0 mil- lion lb as of October 2013. The changes to the mineral reserve estimates are primar- ily as a result of the addition of 10,7 million lb of U 3 O 8 of reserves from the Namibplaas deposit, using a 140 ppm cut-off grade. The operating costs per pound are estimated to average US$32,96/lb U 3 O 8 over the first five years of production and US$34,72/lb over the life of the mine. The updated cost estimates represent a signifi- cant reduction from the 2013 Engineering Cost Study (ECS) estimates of US$34,76 and US$38,20/lb U 3 O 8 ,respectively. The economic analysis results in an esti- mated pre-tax net present value (NPV) at a discount rate of 8 % of US$622,6 million (post-tax NPV US$383,4 million). Using the initial investment and operating cash flows from inception, the pre-tax internal rate of return is estimated to be 32 %. The Norasa production schedule has been modified to incorporate the updated mineral reserves and to include a processing rate increase to 11,2 Mt/a, up from 8,2 Mt/a in 2010. Estimated annual production over the 15-year life of mine (LoM) is approxi- mately 5,2 million lb of U 3 O 8 . 

marking the first approval for new reactors in four years. “China, currently the largest constructor of new reactors, clearly continues to ramp up its nuclear energy programme in line with its stated goal of increasing electricity generated from nuclear plants from 21 GW currently to 58 GW by 2020 and 150 GW by 2030. In terms of reactors, China now has 24 reactors in operation, 25 under con- struction and 189 on order, planned or proposed. “In the face of this growing demand, Bannerman’s advancing Etango project remains one of the very few globally signif- icant uranium projects that can realistically be brought into production in the medium term.” Owned 80 % by Bannerman, the Etango project is located on the Namib Desert sands approximately 38 km (by road) east of Swakopmund and has proved and probable reserves totalling 279,6 Mt at an average grade of 194 ppm for 119,3 Mlb of contained U 3 O 8 . 

Bannerman Resources has announced the successful completion of construction and the official opening on 24 March 2015 of the Etango heap leach demonstration plant by Patrick Elungu, Chief Inspector – Regional Services, Ministry of Mines and Energy, Namibia, and Dr Wotan Swiegers, Director of the Namibian Uranium Institute. Bannerman says the commissioning of the plant is a significant milestone as it continues to progress the development of the Etango uranium project. The new facility, an integral step of the detailed engineering and financing phases, specifi- cally enables: demonstrating the design and projected performance reflected in the DFS; maintaining and building project knowledge; and pursuing value engineering. Bannerman’s Chief Executive Office, Len Jubber, said: “The commissioning of the demonstration plant coincides with the Chinese government approving construc- tion of two more units at the Hongyanhe nuclear power plant in Liaoning province,

The opening of the Etango heap leach demonstration plant (photo: Bannerman).

April 2015  MODERN MINING  9