bmn getting heaps of press

This is a great article published by Fuel Cycle Week of Washington DC

Vol. 6, No. 245 / September 11, 2007
TWO PROMISING NAMIBIAN PROJECTS SHAPE UP FOR NEAR-TERM PRODUCTION
By Roger Murray, Special Correspondent

Exploration of two highly-promising uranium project areas in the west-central Namib desert area of Namibia’s Erongo region- Goanikontes and Husab- has been notched up significantly in recent months by Australia’s Bannerman Resources and Extract Resources respectively. Both companies are confident of proving-up sufficient resources within the next 3-6 months or so to move to feasibility stage in 2008-09 for the development of uranium mining operations. With commercial mining at AREVA/UraMin Inc’s Trekkopje project on track for an end-2008 start-up and the Valencia project of Canada’s Forsy Metals Corporation currently at the pre-feasibility stage, the development of mines at Goanikontes and Husab would bring to the number of new Namibian uranium mines to four, potentially more than doubling the country’s current output capacity of 5,000 metric tons U3O8 (Rossing and Langer Heinrich mines) by 2010/2011.

Drilling and resource definition is currently at a more advanced stage for Goanikontes, where Bannerman currently plans to have a mine in operation by the second half of 2010. Both companies have brought a tremendous amount of enthusiasm and exploration expertise to their Namibian projects, and see no likelihood of significant obstacles to developing their mines from either political risk, logistical or permitting factors. Provided that is, that the main identified constraint- adequate water supply for uranium ore processing- is addressed within the required time scale through the construction of a desalinated water plant at the coast by 2009 as recently confirmed by NamWater (FCW#244, Sep 4).

Both Goanikontes and Husab contain Rossing-style alaskite rock-hosted primary uranium, with continuous mineralized zones over large areas confirmed by the ongoing drilling programs underway at each location. Bannerman holds two adjoining exploration licences- Goanakontes, some 30km inland from the coast and 20 km southwest of Rossing and Swakop River to the south- but has suspended work at the latter to concentrate on defining a resource for the Goanikontes Anomaly A deposit, where drilling has extended the mineralized strike length from 1.7 km to 2.3 km. But this is only a small part of the potential at Goanikontes, where 37 km of radiometric anomalies have been detected, of which 17 km comprise rock outcrop free from sand cover, and a new mineralized area, Rabbit Valley, has recently been identified, where drilling has yet to take place.

The company presently has three reverse-circulation (RC) drill rigs on site with a diamond drill rig due to arrive shortly- which are completing a program of extensional and in-fill drilling over the entire strike of the deposit down to a depth of 300 meters to provide the basis for an upgraded resource estimate by the end of this year. The interim resource of 56 million metric tons at 219 ppm (0.022%) U3O8- equivalent to 27 million pounds (12,200 metric tons) U3O8- was modelled to an average depth of only 80 meters, and the new resource estimate is set to be considerably larger, as current drilling has confirmed that the grades improve at depth. An end-July investor analysis by Australian stockbroker Hartleys, predicted an upgraded resource estimate of around 160 million pounds (73,000 metric tons) U3O8, based on deeper and along strike drilling, plus the incorporation of sediment-hosted mineralization. However, a final resource estimate is to be published at the end of the first quarter of 2008, based on diamond drilling down to 400 meters, which could further increase the size of the deposit.

A scoping study by Coffey Mining is due to be completed this month, with Australia’s IMO conducting metallurgy studies, which will establish the mining, processing and financial parameters for a mining development. The study is expected to confirm the potential for a large, long-life mine and will be followed by the commissioning of a bankable feasibility study (BFS) in the first half of 2008, which will be accompanied by the start of sales negotiations with nuclear power utilities, FCW was told. Bannerman’s managing director, Peter Batten, says at this stage the company is planning for a 15 million metric ton per year mining operation for the recovery of some 3,000-4,000 metric tons U3O8 annually at an approximate capital cost of just under $400 million. To facilitate the raising of additional finance for the project, Bannerman will complete a secondary listing on the Toronto Stock Exchange (TSX) this October and also plans to list on the Namibia Stock Exchange (NSX), while retaining its primary listing on the Australia Stock Exchange (ASX).

cheers