Etango-XP and Etango-XT Scoping Study

Etango-XP and Etango-XT Scoping Study

Bannerman Energy Ltd (ASX:BMN, OTCQX:BNNLF) is pleased to advise of the completion of a Scoping Study evaluating future higher throughput and operating life cases for its flagship Etango Uranium Project (Etango) in Namibia. Two future phase options have been evaluated: a post ramp-up expansion in throughput capacity to 16 Mtpa (Etango-XP) or an extension of operating life to 27 years (Etango-XT).

Bannerman remains focused on advancing Front End Engineering and Design (FEED), offtake marketing and strategic financing workstreams on its base case 8 Mtpa Etango development (Etango-8), which was the subject of a Definitive Feasibility Study (DFS) (refer Bannerman ASX release dated 6 December 2022, Etango-8 Definitive Feasibility Study).

Bannerman remains fully committed to the timely development of Etango-8, which is a highly attractive standalone project. The Scoping Study evaluation of the Etango-XP and Etango-XT cases has been undertaken to demonstrate the potential technical and economic viability of subsequent expansion and/or life extension options for Etango, post successful construction and ramp-up of Etango-8.

  • Etango-XP (mine and plant throughput expanded to 16 Mtpa from operational Year 5):
    • Life Of Mine (LOM) U3O8 output of 95.2 Mlbs over 16 years (Etango-8 DFS: 52.6 Mlbs over 15 years) 
    • Annual average U3O8 output (post plant expansion) of 6.7 Mlbs (Etango-8: 3.5 Mlbs)
    • Expansion phase capex of US$325M (Etango-8: zero)
    • LOM average all-in-sustaining cash cost (AISC) of US$42.5/lb U3O8 (Etango-8: US$38.1/lb) 
  • Etango-XT (life extension with mine and plant throughput maintained at 8 Mtpa):
    • LOM U3O8 output of 95.2 Mlbs over 27 years (Etango-8 DFS: 52.6 Mlbs over 15 years)
    • Annual average U3O8 output of 3.5 Mlbs (Etango-8: 3.5 Mlbs)
    • No expansion phase capex (Etango-8: zero)
    • LOM average AISC of US$45.3/lb U3O8 (Etango-8: US$38.1/lb) 
  • All Etango-8 cost estimates (including pre-production capex of approx. US$320M) remain materially unchanged; increased opex estimates associated with Etango-XP / XT are predominantly driven by higher requisite strip ratio 
  • Future feasibility work on Etango-XP and Etango-XT options is capable of ready fast-tracking given all resource drilling, geotechnical, metallurgical, process and environmental workstreams already complete as part of previous DFS-level project evaluation.

"Developing the world-class Etango Project at an initial 8 Mtpa throughput scale is our core focus. We undertook the Etango-XP / XT Scoping Study in order to demonstrate the ready technical and financial viability of expanding or extending our base case Etango operation following its successful construction and ramp-up. 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.”

“I am delighted that we have more formally demonstrated the longer-term optionality delivered by our large-scale Etango uranium resource. 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. The ability to enact either the XP or XT plans, post-delivery of the initial Etango-8 development, affords Bannerman substantial real option value across a range of long-term uranium price outcomes.”

The comprehensive Scoping Study announcement, which attaches the complete Scoping Study Report prepared by Wood plc, can be downloaded here.

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