Bannerman Energy Ltd · ASX:BMN
Bannerman Energy — Bannerman Resources — Investor Presentation (January 2010)
28 slides from Bannerman Energy's investor presentation, Jan 11, 2010
Slide 1: Etango Uranium Project
For personal use only Etango Uranium Project Building a significant producer with broad strategic appeal January 2010
Slide 2: Forward-Looking & Technical Disclosures
Forward-Looking & Technical Disclosures For personal use only Certain disclosures in this presentation, including management's assessment of Bannerman Resources Ltd’s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relatin
Slide 3: Contents
Contents For personal use only 1. Etango Project Feasibility Study. 2. Strategic appeal. 3. Next steps. 4. Appendix. Page 3
Slide 4: Etango Project Feasibility Study
Etango Project Feasibility Study For personal use only Page 4
Slide 5: Advancing to Definitive Feasibility Study
Etango Uranium Project Advancing to Definitive Feasibility Study For personal use only Preliminary Feasibility Study (PFS) completed in December 2009. Extensive resource base, with a further upgrade in Q1 2010. Definitive Feasibility Study (DFS) – 12-15 month program for a development decision
Slide 6: PFS Highlights – Flotation Concentrate Leaching
PFS Highlights – Flotation Concentrate Leaching Robust large scale, long life uranium project For personal use only Mineral • Large near-surface resource – M&I 103Mlbs and Inferred 49Mlbs U3O8. Resource IRR/NPV • Pre-tax IRR of 22%, NPV10% of US$431M and 3-4 year payback (at US$70/lb U3O8). Producti
Slide 7: Conventional Open Pit Mining
Conventional Open Pit Mining Significant benefits derived from shallow, flat dipping & long deposit For personal use only Final pit design Onkelo Starter pits Simple staged pit Area drilled design. subsequent to Resource model zones completion of Low strip ratio resource model (3.5 waste to 1.0
Slide 8: Uranium Pricing
Uranium Pricing Spot v Long Term Contract prices For personal use only To insert coloured column chart showing existing/new uranium mines/projects by annual production and/or US$70/lb mineral resource base. Source: Ux Consulting, Q4 2009 report Page 8
Slide 9: Definitive Feasibility Study
Definitive Feasibility Study Targeted project enhancements For personal use only Drilling • Results since June 2009 to be incorporated in new resource estimate due Q1 2010 • Will include Oshiveli and Onkelo – higher grade zones Resource • Update in Q1 2010 to increase size and contiguous strike leng
Slide 10: Infrastructure & Utilities
Infrastructure & Utilities Proximity to all key infrastructure For personal use only 20 GL Trekkopje/Areva AREVA Plant Valencia/Forsys Etango Tenement Road Power Line Rössing/Rio Tinto Railway Proposed Primary Uranium Deposit 25 GL Plant (NamWater) Secondary Uranium Deposit Rössing South/Extract Eta
Slide 11: Mineral Resource
Mineral Resource Forward Extensive Looking uranium and deposit Technical located primarily Disclosures in flat desert terrain For personal use only Etango Project* Mineral Resource Estimate – December 2009 Uniform Conditioning (“UC”) Method Measured & Indicated Resources Inferred Resources Lower Ton
Slide 12: Flotation Concentrate Leaching Flowsheet
Flotation Concentrate Leaching Flowsheet Application of established technologies For personal use only Flotation Concentrate Leaching Flowsheet Page 12
Slide 13: Flotation Testwork
Flotation Testwork Over 94% flotation recovery in 5.5% mass pull concentrate For personal use only Fresh water Recycled water Improved frothing with recycled water may present opportunity to reduce reagent consumption Page 13
Slide 14: Strategic Appeal
Strategic Appeal For personal use only Page 14 Callaway nuclear power plant, Missouri, USA
Slide 15: Etango Project Strategic Value
Etango Project Strategic Value For personal use only Nuclear utilities want: Etango has: 1. Low/negligible sovereign risk Premier uranium producing jurisdiction 2. Long mine life (+10 years of supply) + 16 year mine life 3. Significant annual production 5-7 Mlbs U3O8 per year 4. Low technical
Slide 16: Estimated Annual Production (Mlbs U3O8)
For personal use only Page 16 Estimated Annual Production (Mlbs U3O8) 10.0 15.0 20.0 25.0 0.0 5.0 McArthur River (Can) Rössing South (Nam) Rössing (Nam) Ranger (Aus) LLP Kazatomprom (Kaz) Olympic Dam (Aus) Globally significant Priargunsky (Rus) Niger (Niger) Muyunkum (Kaz) Navoi (Uzb) Annual Product
Slide 17: Nuclear Power Utilities
Nuclear Power Utilities Chasing limited new uranium sources For personal use only 120 Nuclear Reactor Build Programs World Nuclear Association Estimates 2009-2030 Estimated Number of Nuclear Power Reactors 100 80 60 40 20 0 Canada China France India Japan Korea Russia Sweden Ukraine UK USA Rest of W
Slide 18: Uranium Supply and Demand
Uranium Supply and Demand Etango – Right timing For personal use only Uranium mine supply versus nuclear reactor requirements 100 90 Mine supply Demand with forecast Gap more than filled by secondary supplies 80 70 60 ´000tU 50 40 Output 30 needs to 20 double 10 0 1945 1950 1955 1960 1965 1970 1975
Slide 19: Next Steps
For personal use only Page 19 Next Steps
Slide 20: Next Steps & Newsflow
Next Steps & Newsflow For personal use only • Financing – Step up dialogue with potential strategic partners and finance providers. • Resource model – Incorporation of drilling reported since July 2009 in Q1 2010. Expected increase in resource size and confidence. • Metallurgical testwork - Flotatio
Slide 21: Summary
Summary Building a significant producer with broad strategic appeal For personal use only Namibia - Premier mining jurisdiction with stated ambitions to develop its uranium resources. Uranium resource - Well-defined and globally significant mineral resource, with expandability. Strategic impor
Slide 22: www.bannermanresources.com.au
For personal use only www.bannermanresources.com.au
Slide 23: Appendix
For personal use only Page 23 Appendix
Slide 24: Namibia
Namibia Premier uranium mining jurisdiction For personal use only Stable democratic government, economy, and legal and mineral title regime. 4th largest uranium producing country (behind Kazakhstan, Canada and Australia). Political and social support of uranium mining. Rössing (Rio 69%) has
Slide 25: Exploration Activities
Exploration Activities For personal use only Etango Project licence covers 500km2 of which only a small portion is properly drill tested. “Hyena” is a new mineralised zone located 1km south of the main Anomaly A deposit. 20 of 42 RC drill holes have intersected significant mineralisation, part
Slide 26: Capital Structure
Capital Structure For personal use only As at January 7, 2010 Share price A$0.82 Shares - currently on issue 202 M Options - exercise prices A$0.20-7.50/share, average A$2.40/share 23 M Convertible Note - matures Dec-2011 for A$10M or 16.3M shares 16 M Contingent Share Issue - on grant of mining lic
Slide 27: Comprehensive skill at Board level
Comprehensive skill at Board level Geoff Stanley, Chairman • Equity Markets For personal use only • Audit Committee Ronnie Beevor James McClements • Finance, Accounting • Finance, Equity Markets • Audit Committee (Chair) • Remuneration , Corporate • Remuneration, Corporate Governance Governance & No
Slide 28: Management Team
Management Team Project development expertise Len Jubber For personal use only CEO & Managing Director Mining Engineer Peter Kerr John Turney Chief Financial Officer Project Director Chartered Accountant Metallurgist Brandon Munro, GM Corporate Development Lawyer Ann Gibbs Peter Christians Ivan Sara
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