• Low uranium prices to blame
• Etango project hangs in the balance
• Environmental clearances remain valid
• Retains right to reapply when prices recover
Bannerman Resources Limited will not receive the Etango project Mining License it applied for in 2009, due to the current low uranium prices. The mining firm revealed this in a statement issued on the Namibian Stock Exchange this week, citing that it had received correspondence from the Minister of Mines and Energy Obeth Kandjoze in which he informed Bannerman of the imminent rejection of the application. “The Company has received correspondence from the MME stating that the Honourable Minister intends to refuse the application for the, which was applied for in December 2009, citing the current low uranium price. The Honourable Minister´s decision is not unexpected and Bannerman retains the right to re-apply for a mining licence when the uranium market recovers,” reads part of the statement. The Ministry of Environment and Tourism granted Bannerman Environmental Clearances for the Etango Project in 2010 and for the project´s Linear Infrastructure in 2012, both of which are pre-requisites for a Mining Licence. “Bannerman´s Environmental Clearances remain valid.”
The Etango Uranium Project is one of the world’s largest undeveloped uranium projects. Etango is one of the few uranium projects in the world with a completed Definitive Feasibility Study (DFS) and environmental permitting and is expected to be a top 10 producer once developed. “Based on the DFS, production is expected to be 7-9 million pounds U3O8 per year for the first five years and 6-8 million pounds U3O8 per year thereafter. It will have a minimum mine life of 16 years with significant expansion potential through the conversion of existing Inferred Resource as well as the deposit being open at depth and along strike,” according to the company. According to Bannerman, Etango is a low technical and environmental risk project, with conventional open pit mining and sulphuric acid heap leaching at 20 million tonnes per annum.
The company announced the renewal of Exclusive Prospecting Licence 3345 and provide an update on the application for Mining Licence 161. Bannerman´s 100% owned Etango uranium project is situated on Exclusive Prospecting Licence 3345(“EPL 3345”) in the Erongo Region of Namibia. “An application to renew EPL3345 was lodged on 26 January 2015. A notice of preparedness to grant the renewal was subsequently received in early 2016 from the Namibian Ministry of Mines and Energy outlining the terms and conditions under which the EPL would be renewed,” the company announced in a statement issued on the Namibian Stock Exchange. It further said: “In addition to standard renewal terms and conditions, the MME required the Company to submit a proposal for local Namibian ownership, employment of historically disadvantaged Namibians and a broader corporate social responsibility plan. The Company understands that this proposal was required of all EPL renewal applicants,” it said. The MME has endorsed the renewal of EPL 3345. The licence has been renewed until 25 April 2017 in accordance with its original term. “The Company submitted a proposal that included local ownership provisions that are consistent with the Mining Charter published by the Namibian Chamber of Mines.”-[nsx.com.na]
Issued on 4 June 2016