Etango-8 Project Scoping Study

PERTH, Australia, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Bannerman Resources Limited (ASX:BMN, OTCQB:BNNLF, NSX:BMN) (Bannerman or the Company) is pleased to advise of the completion of a Scoping Study for an 8Mtpa development of its flagship Etango Uranium Project in Namibia (Etango-8 Project).

KEY OUTCOMES Primary outcome of recent scaling evaluation work on Etango; provides an alternate, streamlined development model to the 20Mtpa development assessed to DFS level in 2015 Demonstrates the strong technical and economic viability of conventional open pit mining and heap leach processing of the world class Etango deposit at 8Mtpa throughput Life-of-mine (LOM) production of 51.1 Mlbs U3O8 (48.5 – 53.7 Mlbs) with annual average production of 3.5 Mlbs U3O8 (3.4 – 3.7 Mlbs) Forecast pre-production capital expenditure of US$254M (US$241 – 267M), delivering an attractive upfront capital intensity of approx. US$71/lb average annual U3O8 production Life-of-mine of approx. 14 years (114.1 Mt plant feed at 232 ppm U3O8) Average final product cash operating cost (ex-royalties) of US$37/lb U3O8 (US$36 – 39/lb) Attractive projected economics at forecast US$65/lb U3O8 realised price: ° Ungeared, real, post-tax NPV8% of US$212M (US$201 – 223M) ° Post-tax internal rate of return (IRR) of 21.2% (20.1 – 22.3%) and payback of 3.6 years ° Forecast net project cashflow (post-capex, post-tax) of US$604M (US$574 – 634M) Further upside potential from: ° Future life extension and/or scale-up expansion ° Additional processing efficiency and cost opportunities Vast body of previous technical work enables fast-tracking of feasibility studies; all resource drilling, geotechnical, metallurgical and environmental work already complete Heap leach process route has also been comprehensively de-risked via operation of the Etango Heap Leach Demonstration Plant Bannerman Board has approved commencement of a Pre-Feasibility Study (PFS) with completion targeted for Q2 2021 Long-term scalability of Etango Project (up to 20Mtpa) confirmed by previous definitive level studies; provides strong optionality and leverage to upside-case uranium market

Commenting on the Etango-8 Scoping Study results, Bannerman Chief Executive Officer, Brandon Munro, said: