Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Bannerman Resources — Investor Presentation (April 2012)
37 slides from Bannerman Energy's investor presentation, Apr 10, 2012
Slide 1: Milestone Events
For personal use only Milestone Events Completion of Etango Uranium Project DFS & Agreement with Namibian State-owned Mining Company April 2012
Slide 2: Technical Disclosures and Forward-Looking Disclaimers
Technical Disclosures and Forward-Looking Disclaimers For personal use only This presentation should be read in conjunction with the release by Bannerman Resources Limited dated 10 April 2012 and entitled “Bannerman Reports Positive DFS Results and Milestone Agreement with Namibian State-Owned Minin
Slide 3: Contents
Contents For personal use only 1. Latest Developments 2. Next Steps 3. Investment Rationale 4. Etango Uranium Project DFS 5. Upside Opportunities 6. Appendices Resource definition (core) drilling at the Etango site. 3
Slide 4: Latest Developments
1. Latest Developments Latest Developments For personal use only Etango Uranium Project Definitive Feasibility Study (DFS) Completed on time and within budget. Demonstrates Etango to be a viable global top 10 pure uranium project. 80% conversion of M&I Resources to Ore Reserves (119Mlbs U3O8)
Slide 5: Next Steps
2. Next Steps Next Steps For personal use only Completion of environmental public consultation process. Completion of Etango DFS. Signing of a partner agreement with Epangelo. Commencement of resource expansion drilling programs to add new resources and extend Etango’s modelled mine life bey
Slide 6: Investment Rationale
3. Investment Rationale Investment Rationale For personal use only Etango breakeven point (~US$61/lb) Price source: Ux Consulting. 6 Etango RC drilling
Slide 7: New Reactor Build Outlook
3. Investment Rationale New Reactor Build Outlook: Countries previously living in energy poverty are rapidly expanding For personal use only # reactors 200 180 443 reactors operating, Proposed 61 under construction, 160 Planned 495 planned and proposed. 140 Under Construction 120 Operating Reactors
Slide 8: Etango at a Glance
3. Investment Rationale Etango at a Glance Scale, Simplicity, Substance For personal use only Scale +16 year mine life, 119Mlbs U O P&P Ore Reserves. 3 8 Significant production 6-9 Mlbs U O per year. 3 8 Low technical risks Conventional mining, metallurgy and processing. Premier location 35
Slide 9: Global Top Uranium Project
3. Investment Rationale Global Top 10 Uranium Project For personal use only 350 335 320 JORC/43-101 Ore Reserves (Mlbs U3O8) of pure uranium projects 300 250 246 209 200 150 135 134 119 119 100 61 53 50 34 0 Bannerman Etango Paladin Langer Heinrich Rio Tinto Rössing Valencia Inkai South Uranium One
Slide 10: High Investment Leverage to the Uranium Price
3. Investment Rationale High Investment Leverage to the Uranium Price For personal use only 10
Slide 11: Positioned for investment re-rating
3. Investment Rationale Positioned for investment re-rating… US$6.00 For personal use only Listed uranium companies - Enterprise values (US$) per attributable U3O8 resource pound US$5.20 US$5.00 US$4.00 US$4.00 US$3.00 US$2.00 US$1.40 US$1.00 US$0.90 US$0.85 Bannerman US$0.35/lb - Exploration Pre-Fe
Slide 12: DFS
3. Etango Uranium Project 4. Etango Uranium Project DFS Global top 10 undeveloped uranium project For personal use only 12 Resource definition (RC) drilling at the Etango site.
Slide 13: Definitive Feasibility Study
4. Etango Uranium Project DFS Definitive Feasibility Study For personal use only Over 30 man years of technical effort over a 4 year period. Over US$50 million invested in resource drilling, testwork and feasibility engineering. Globally renowned independent technical experts – AMEC, Coffey Mi
Slide 14: DFS Highlights
4. Etango Uranium Project DFS DFS Highlights For personal use only Mine life Minimum 16 years with defined extension opportunities Mining & processing Conventional open pit mining; three-stage crushing; heap leaching, SX Waste/ore strip ratio 3.3 : 1 Plant throughput 20 million tonnes of ore per yea
Slide 15: Etango Project Mineral Resource and Ore Reserve Estimates
4. Etango Uranium Project DFS Etango Project Mineral Resource and Ore Reserve Estimates For personal use only Category Tonnes Grade Contained U3O8 (Mt) (ppm U3O8) (Mlbs) Measured 62.7 205 28.3 Indicated 273.5 200 120.4 Measured & Indicated Resource 336.2 201 148.8 Inferred (Etango) 45.7 202 20.3 80%
Slide 16: Erongo Uranium Province, Namibia
4. Etango Uranium Project DFS Erongo Uranium Province, Namibia Extensive uranium inventory and nearby infrastructure For personal use only 16
Slide 17: Erongo Region
4. Etango Uranium Project DFS Erongo Region Trading hub of Namibia For personal use only 17
Slide 18: Etango Site Layout
4. Etango Uranium Project DFS Etango Site Layout For personal use only Key Features Consistent mineralisation in broad zones, from surface. Shallow deposit enables fast ramp- up as 70% of the mineralisation is within 200 metres of surface. ~90% of mineralisation within the visual alaskite (gra
Slide 19: Simple Open Pit Mining Operation
4. Etango Uranium Project DFS Simple Open Pit Mining Operation For personal use only Years 1-5 mining fleet: • 32 haul trucks 1.2 billion • 15 drills tonnes (ore and • 6 excavators waste) mined • 6 graders over 16 years • 6 bulldozers 6km 1km YEAR 16 19
Slide 20: Conventional Process Flowsheet
4. Etango Uranium Project DFS Conventional Process Flowsheet… For personal use only 20
Slide 21: Conventional On-Off Heap Leach Operation
4. Etango Uranium Project DFS Conventional On-Off Heap Leach Operation For personal use only 21
Slide 22: Upside Opportunities
5. Upside Opportunities For personal use only 22 Etango RC drilling
Slide 23: Increased Resource Utilisation
5. Upside Opportunities Increased Resource Utilisation For personal use only Hyena Deposit (Inferred resource) Ondjamba Deposit (Inferred resource) Etango Deposit Resource zones outside pit design Open at depth 1km Total U3O8 Mineral Resource comprises 149Mlbs M&I and 64Mlbs Inferred 23
Slide 24: Resource Expansion Drilling Programs
5. Upside Opportunities Resource Expansion Drilling Programs Etango Project Area 5km For personal use only N Existing Etango resource (149Mlbs M&I and 64Mlbs Inferred) Etango West Target (blue) Etango Deeps Target (red) Etango South Target (green) Ompo Already drilled (yellow) Additional target (gre
Slide 25: Resource Expansion Potential
5. Upside Opportunities Resource Expansion Potential For personal use only • Potential to expand and deepen the pit design and to extend mine life. • Broad mine-grade intercepts discovered. • Adjacent to the planned Etango open pit. • Greatly expands exploration potential to the west of the planned
Slide 26: In Summary
In Summary Bannerman well positioned to take advantage of expected higher uranium prices For personal use only DFS completed. Partnership agreement with Epangelo (subject to due diligence and financing). Commencement of resource expansion drilling program. Lodgment of updated environmental s
Slide 27: www.bannermanresources.com
www.bannermanresources.com For personal use only Scale, Simplicity, Substance
Slide 28: Corporate Snapshot
APPENDIX Corporate Snapshot As at April 5, 2012 For personal use only Share price A$0.205 Shares - currently on issue 297 M Shares - fully diluted (for options, rights, existing convertible note & contingent issues) 337 M Market capitalisation (undiluted) A$61M / US$63M Average daily traded volume i
Slide 29: Historical Share Price Demonstrates Leverage
APPENDIX Historical Share Price Demonstrates Leverage For personal use only 29
Slide 30: Epangelo Agreement – Key Terms
APPENDIX Epangelo Agreement – Key Terms For personal use only Documentation Binding Term Sheet signed between Bannerman, Epangelo, Bannerman’s 80% Namibian subsidiary Bannerman Mining Resources (Namibia) (Pty) Ltd (BMRN) and the private 20% shareholder of BMRN. Interest to be Epangelo can purchase 5
Slide 31: Benefits for Namibia
APPENDIX Benefits for Namibia Significant new employment opportunities and royalty/taxation revenues For personal use only • Employment opportunities - Creation of 800-1,500 new jobs during construction, and an average of 1,000 new jobs during operations. The majority of employees are expected to be
Slide 32: Etango – DFS Pre-Production Capital Costs
APPENDIX Etango – DFS Pre-Production Capital Costs For personal use only US$ DFS Pre-Production Capital Cost Estimate (April 2012) million Mining – fleet, establishment & pre-stripping 127 Process plant 354 Site infrastructure 91 External infrastructure (power, water, rail, road and port) 47 EPCM co
Slide 33: Etango – DFS Cash Operating Costs
APPENDIX Etango – DFS Cash Operating Costs For personal use only First 5 Life-of- DFS Cash Operating Cost Estimate (April 2012) Years Mine Mining: - US$/tonne mined 1.72 1.97 - US$/tonne ore 7.87 8.55 Processing (US$/tonne ore): Consumables, labour, maintenance & other 3.37 3.41 Sulphuric acid 1.78
Slide 34: Proven Track Record
APPENDIX Proven Track Record For personal use only Dec 2011 34
Slide 35: Straightforward Metallurgy
APPENDIX Granitic – “sand & gravel” like, with no clay Straightforward For personal use only Close-up image of the base of a 7 metre column test Metallurgy Uranium recoveries greater than 90% have been consistently achieved in short leach cycle times; Low in acid-consuming carbonates. Little,
Slide 36: Bannerman in Namibia
APPENDIX Bannerman in Namibia For personal use only Bannerman personnel at the Biodiversity Street Parade, Swakopmund 36
Slide 37: Making a Real Difference
APPENDIX Making a Real Difference For personal use only Radiation safety initiatives, Support of the Erongo Co-sponsor of the annual Early Learner Assistance Program including the first Radiation in local schools Development Foundation Hospitality Association of Namibia Management Plan conference En
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