“Building a World Class Uranium Project” MineAfrica Presents: Investing in African Mining -...
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Transcript of “Building a World Class Uranium Project” MineAfrica Presents: Investing in African Mining -...
“Building a World Class Uranium Project”
MineAfrica Presents:Investing in African Mining - December
2008
Page 2
This presentation contains certain forward-looking information about the Company that is intended to be covered by the safe harbour for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
Safe Harbour
The information in this press release that relates to the Mineral Resources at the Etango Anomaly A Deposit is based on a resource estimate completed by Mr Neil Inwood who is a full time employee of Coffey Mining Ltd. Mr Inwood is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, and is an independent consultant to Bannerman Resources and a Qualified Person as defined by NI 43-101. Mr Inwood consents to the inclusion in the press release of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the metallurgical test work undertaken on Etango Anomaly A Deposit samples was completed by Mr Gary Jobson who is a consulting metallurgist to Independent Metallurgical Operations Pty Ltd. Mr Jobson is a Member of The Australasian Institute of Mining and Metallurgy and has extensive experience relevant to the activity which is being undertaken. Mr Jobson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the Exploration Results, is based on information reviewed by Mr. Clive Jones, who is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones is a non-executive Director of the company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.”
Page 3
Identified new resource growth areas
Increased Mineral Resource from 26.9 to 106Mlb U3O8
Strengthened Board & Management capability
Commenced Feasibility Studies
Established Namibian infrastructure and country head
Raised over A$20 million
Signed term sheet for an additional A$20 million capital raising
Appointed CEO with operational and project development experience
Highlights of 2008 Activity
An emerging world class uranium producer
Page 4
The Nuclear Future
RössingRössing
Neckarwestheim, GermanyNeckarwestheim, Germany
Lungmen, TaiwanLungmen, Taiwan
Obrigheim, GermanyObrigheim, Germany
Uranium market not immune to the global credit crisis
Recent Spot price movements lead by Hedge fund redemptions
Spot Prices just now beginning to rebound
Production shortfall of ~10mlbs expected this year
Long term pricing still high, more relevant to Etango
Page 5
Capital Structureas at 20 Nov 2008
Issued & Outstanding Shares 167 million
Share Price - ASX:BMN
- TSX:BAN
A$0.48
C$0.40
Options: Management & Directors 17.3 million
Fully Diluted Shares 185 million
Market Capitalisation A$89m (US$74m)
Convertible Note Facility A$20 million
Management & Directors’ Ownership (fully diluted) 20%
Page 6
Management & Board
Geoffrey Stanley, Non-executive Chairman• New York based, 25 years experience as a highly ranked analyst in Australia, Canada and US equity markets
Len Jubber, Chief Executive Officer• Mining engineer with 20 years operations and leadership experience including an 8-year career launch at Rössing
Mine, followed by 7 years as COO at Oceana Gold and most recently as MD and CEO for Perilya Clive Jones, Non-executive Director
• 25 years experience in mineral exploration; strong record of corporate and technical successes Nathan McMahon, Non-executive Director
• Proven track record of successful mining ventures; specialised in project negotiations and acquisitions Alastair Clayton, Non-executive Director
• UK based, financial, technical and corporate experience in the mining sector David Tucker, Non-executive Director
• 39 years industry experience largely as former Director for Homestake Gold’s Australian subsidiaries; and Barrick Mining Company (Australia) and Barrick Gold. Experience in uranium exploration.
Peter Christians, Chief Operating Officer
• Namibian national, mining engineer with experience on large scale international projects. Also previously worked at Rössing uranium mine
Page 7
Namibia
Modern, politically stable country with a long history of resource development & mining
World class uranium province along mid-coastal region – produces ~8% of the world’s uranium
Current uranium mining projects / operations include: • Rössing Mine commenced in ‘76 (69% Rio Tinto)• Langer Heinrich Mine commenced in ‘05 (Paladin)• Trekkopje Project (Areva/CGNC) - in construction• Valencia Project (Forsys / GFI) – near construction• Etango Project (Bannerman) – feasibility study• Rössing South Project (Extract/RIO) – resc drilling
Page 8
Erongo Uranium Province
Johannesburg
Windhoek
Europe
Nth America
Asia
ETANGO (106 Mlbs+)ETANGO (106 Mlbs+)
Bannerman Tenements
Road
Power Line
Primary Uranium Deposit
Railway
Secondary Uranium Deposit
Valencia (63 Mlbs)Valencia (63 Mlbs)
Rossing (+300 Mlbs)Rossing (+300 Mlbs)
Trekkopje (238 Mlbs)Trekkopje (238 Mlbs)
Rossing South (Nil)Rossing South (Nil)
Langer Heinrich (208 Mlbs)Langer Heinrich (208 Mlbs)
Cape Town
0 50Kilometres
Etango EPL3345Etango EPL3345
Swakop River EPL3346Swakop River EPL3346
Page 9
ETANGO PROJECT
WORLD CLASS URANIUM PROJECTWORLD CLASS URANIUM PROJECT
Page 10
In excess of 100Mlbs U3O8
Alaskite (granite) hosted mineralisation analogous to Rössing
Over 37km of highly prospective stratigraphy
First target explored, yielded world class resource
Simple, low-cost, proven processing flow sheet
Long-life potential
Etango Project
Etango
2.5km long, 100m wide
Target 150M lbs U3O8
Page 11
Block Model & Pit Shell Snapshot
Ondjamba
Oshiveli extensionsIncludes; 81m @309,83m @ 213 &30m @552ppm U3O8
Mineralisation from near surface over 2.6km
Large tonnage provides economies of scale
Moderate to low strip ratio
Mineralisation open at depth and to N, W and S.
Higher grade ‘starter’ pit zones available
Western extensions
Page 12
Etango Resource Estimate as at August 2008
Total Resource of 145mt for 66.9mlbs (Indicated) & 91.6mt for 39.7mlbs (Inferred)
505 holes completed for 140,558m over a 2.6 km strike length
Large amounts of metal also present at the higher cut-offs
67% Indicated & 33% Inferred - drilling ongoing to further upgrade confidence
Current scale and mineral resource classification adequate to support full Feasibility Study
Indicated Resources1 Inferred Resources1
Low Cut (U3O8 ppm)
Tonnes(mt)1
Grade (ppm)
Metal (U3O8) (mt)1 (mlbs)
Low Cut (U3O8 ppm)
Tonnes (mt)1
Grade(ppm)
Metal (U3O8)(mt)1 (mlbs)
100 145 209 30.3 66.9 100 91.6 197 18.0 39.7
150 112.3 233 26.2 57.7 150 65.5 224 14.6 32.3
200 69.4 269 18.7 41.2 200 34.5 268 9.3 20.4 1 “(Mt)” refers to metric million tonnes equivalent to 2.204 mlbs. Reported at various cut offs using a bulk density of 2.62t/m3. Ordinary kriged estimate based upon 3m cut U3O8 composites. Block dimensions of 25m NS by 25m EW by 10m RL
Page 13
Project Focus – Recent Activity
Updated resource estimate at the Etango open pit
Advanced feasibility studies underway
• Excellent preliminary metallurgical results• High recoveries at coarse grind sizes (~1000µm)• Low to moderate acid consumption (15- 20 kg/t) is highly probable• Recoveries up to 90% deemed achievable at ambient pressures and temperature• Potential for processing via Heap Leach being investigated
• Geotechnical, hydrological, infrastructure studies underway• Environmental & Social Impact Studies
Exploration commenced to build resource pipeline
• Exploration re-focused to near pit environment
Community and Stakeholder meetings undertaken
Page 14
Etango Pit Environs
Highly prospective targets adjacent to Etango pit area
If proven, new resources here would significantly improve the project’s economics
Numerous alaskite outcrops ranging from 1.3 to 3 km long over 22 km
Recent Oshiveli drilling; 81m@309, 83m@213 & 30m@552ppm U3O8
Ondjamba zone equivalent to the “Rössing position”
Page 15
Etango Development Timetable
2006 2010200920082007 2011
Licences Granted
EPA Approvals
Scoping Study
Res. Drilling (Etango)
2012 Mining
EIA and Feasibility Studies
Construction & Development
Interim Res.
TSX Listing
…Rapidly progressingtowards production
To become a Top 10 World Producer
The Aim…
‘A’
Resource Finalised
‘A’
Expand Exploration
Resource Base increasing
Financing & permitting
‘A’Resource upgrade
Capital Raising
Page 16
Exploration – Targets Galore
Over 37 km of prospective alaskite stratigraphy
Etango Pit A: First target drilled
15 targets already identified
Numerous large look-alike outcropping alaskite intrusions identified in region• Oshiveli – Onkelo• Rossingburg• Ombuga• Ompo• Ombepo etc…
Ondjamba
SE flank of dome
extensive area under cover
‘Ompo’
>2km long, 100m wide
Target ??M lbs U3O8
“Oshiveli” & ‘Onkelo’
2 Bodies; 1.2 & 3km long, ~100m wide each
Target ??M lbs U3O8
Etango
2.5km long, 100m wide
Target 150M lbs U3O8
Rossingburg ’13’
Rio 57.2m @ 230 ppm
Target ??M lbs U3O8
‘Ombuga’
2 x 2km long each
Target ??M lbs U3O8
‘Gohare’
2km long Target ??M lbs U3O8
‘Ombepo’
2km long, ~100m wide
Target ??M lbs U3O8
Page 17
Exploration: Swakop River Project
Surrounds Paladin Resources’ LANGER HEINRICH U deposit
Bloedkoppie Prospect;•Extension of Langer Heinrich orebody•Extensive exposed areas of carnotite bearing calcretised sediments•Fieldwork confirms several square kilometers of potential•Outstanding target, not yet drilled
Langer Heinrich
Page 18
Summary
Resource base in excess of 100mlbs U3O8 Advanced feasibility study Fully funded to development decision Building development & operations capability Sole remaining independent company with
major uranium project in established region First mine could project Bannerman into the top 10 U producers Substantial exploration upside at Etango and Swakop projects
BUILDING A WORLD CLASS URANIUM PROJECTBUILDING A WORLD CLASS URANIUM PROJECT