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Bannerman Resources Ltd. (TSX:BAN,ASX:BMN) announced the completion of an optimization study on the geological modeling and mine planning aspects of the definitive feasibility study (DFS) for the Etango project.
Bannerman Resources Ltd. (TSX:BAN,ASX:BMN) announced the completion of an optimization study on the geological modeling and mine planning aspects of the definitive feasibility study (DFS) for the Etango project. The DFS was completed in April 2012.
As quoted in the press release:
Key outcomes of the OS (at a life-of-mine price of US$75/lb U3O8):
- Project net present value (NPV8%) of US$419M (previously US$69M).
- Post-tax internal rate of return (“IRR”) of 15% (previously 9%).
- Average annual production of 7.2Mlbs U3O8 over an initial 15.7 year open pit mine life;
- 9.2Mlbs U3O8 per annum over the first five full production years (previously 7.9Mlbs).
- Average life-of-mine cash operating costs of US$38/lb U3O8 (reduced 17%);
- US$33/lb U3O8over the first five full production years (reduced 20%).
- Pre-production capital of US$793M including mining fleet (reduced 9%).
- Rapid payback from first production (4.4 years) and initial mine life to payback ratio of 3.6 times.
- Total operating cash flow of US$3.7B before capital and tax, and free cash flow of US$1.6B after capital and tax. From production commencement, average annual operating cash flow of US$236M and free cash flow of US$150M. Peak annual free cash flow of US$392M.
- Potential upside from heap leach demonstration plant results and other identified opportunities still to be incorporated via additional optimisation work.
Click here to read the full Bannerman Resources Ltd. (TSX:BAN,ASX:BMN) press release.