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Bannerman lists uranium project in Namibia
Julie Bain
Posted: Wed, 26 Mar 2008
[miningmx.com] -- AUSTRALIAN miner Bannerman Resources shares will be tradable on the Namibian Stock Exchange from 2 April, as it raises its confidence levels in a uranium deposit that could produce up to nine million pounds of uranium oxide from 2011.
Peter Batten managing director of Perth-based Bannerman, which listed on the Australian Stock Exchange in 2005 and is also listed on the Toronto Exchange, said there was no requirement to list in Namibia if you had assets there. Rather he said listing there was a vote of confidence in the country's mining regime.
"It is a small exchange in a developing country and listing is seen among miners there as showing our confidence in the county as place to do business," Batten told Miningmx.
Namibian pension funds are required to place a certain proportion of their investments in Namibian assets and as the number of companies
listed on the exchange increases they are presented with a wider range of investment opportunities.
Other uranium companies already listed on the Namibian exchange are Paladin Energy, Deep Yellow, Xemplar Energy and Forsys Metals.
Bannerman has two assets in Namibia in which it has 80% stakes, one green field exploration site Swakop River and another project Goanikontes which is 35km east of
Swakopmund. Goanikontes has an inferred resource of 72 million pounds of uranium (U3O8) and if this is proved up to reserves Batten said the project could have a life of mine of 10 to 15 years.
"We have five drill rigs on site and expect to be finished (have the resource proved up to reserves) by mid-year. We will then go on to the end of the year and expect to apply for a mining licence," said Batten.
Bannerman still has to raise the $450m funding for the proposed development of an open pit mine which should be producing yellow cake (U3O8) by 2011.
As far as sale the of the yellow cake, which is used in the making of nuclear fuel, goes Batten said it would most likely be shipped out through the Namibian port of Walvis Bay. With an operation of this size Bannerman it hopes to conclude a sales agreement with a major buyer nearer to the time of production.
"We expect to produce 6 to 9 million pounds per annum," said Batten.
Bannerman
has three prospecting licences in Botswana for uranium, precious metals, base metals and platinum group minerals.
Batten said the prospects were "nice addresses" but work was at an early stage and said there was some uranium there but the company was not sure how much at this stage.
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