GM: Bannerman Resources Ltd. (TSX:BAN; ASX:BMN) has done a lot of work in terms of defining the Etango deposit, which has about 160+ million pounds of uranium. It's tens of kilometers away from Extract's Rossing South. They're all very close together, and all alaskite-hosted. That means the mining and processing techniques are well known and understood given the long history of mining at the Rossing Mine.
The Etango deposit is defined over 6 km. of strike length. It crops outit's at surface and shallow. Bannerman doesn't have the grade that Extract has, so they're a more leveraged play in the space; but we still like Bannerman in terms of a large strategic resource. We're looking at cost of production in the high $30s or maybe $40 a pound.
The big thing there is that they should get their ultimate mining license over the next few months, so they'll be one of only three operations to have licenses to go into production. The big players are looking for resources with potential for large-scale production in areas that allow uranium mining. And that's where Bannerman, Extract and Mantra all come out quite well.
TER: Thank you, Geordie, for updating us on all of these exciting developments.
Dr. Geordie Mark, a research analyst with Haywood Securities, focuses principally on uranium companies involved in exploration, development and production. He joined Haywood Securities from the junior exploration sector, where he was vice president of exploration for Cash Minerals, which concentrated on uranium and iron oxide-copper-gold targets across Canada. Immediately prior to joining the exploration industry full-time, Dr. Mark lectured in economic geology at Monash University, Australia and served as an industry consultant. He completed his Ph.D. in geology in 1998 at James Cook University's Economic Geology Research Unit in Australia, specializing in aqueous geochemistry and igneous petrology applied to ore-forming systems.
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BMN Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
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