Bannerman hikes Namibia uranium project capital cost estimate

Uranium project developer Bannerman Resources has announced a moderate increase in the preproduction capital forecast for the Etango-8 project, in Namibia. This update follows the completion of the front-end engineering design (FEED) and control budget estimate (CBE) processes.

The completion of FEED and the CBE has refined the outcomes of the 2022 definitive feasibility study (DFS), enhancing accuracy and recency to key cost estimates. As a result, the CBE preproduction capital forecast has risen by N$670 million, or 11.3%, from the DFS estimate to N$6.6 billion. The increase is driven by design changes and impacts of inflation.

“The FEED work has confirmed the high quality of the technical evaluation and design, as detailed in the December 2022 DFS,” said CEO Gavin Chamberlain.

He added that finalising the CBE demonstrated the robustness of the DFS cost estimates, evidenced by the lack of significant increases in forecast construction or operating costs.

“Additionally, the moderate increase in forecast pre-production capital is attributed to design enhancements that deliver cost efficiencies and reduce operating risks,” he explained.

The CBE continues to apply the total DFS contingency of N$509 million.

Early works construction of the access road and water pipelines is currently under way and expected to be completed in July.  Additionally, the company is continuing with strategic finance and offtake marketing workstreams.

Based on a nameplate capacity of eight-million tonnes a year, the Etango project is expected to have a mine life of 15 years, producing 52.6-million pounds of uranium oxide, averaging 3.5-million pounds a year.

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