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MODERN MINING
February 2015
MINING News
Reporting on the December 2014 quarter,
Bannerman Resources, which is devel-
oping the Etango uranium project in
Namibia, says it maintained its focus on
activities that will enable fast tracking a
commitment to the development of the
Etango project.
On 22 September 2014 Bannerman
announced the award of the major con-
tracts to construct and operate the Etango
heap leach demonstration plant and activi-
ties at the site commenced in early October.
Construction of the demonstration plant at
the Etango site was well advanced by the
Demo plant at Etango nears completion
end of the quarter with completion sched-
uled for the March quarter 2015.
Operation of the plant for at least 12
months will enable demonstration of the
heap leach design at a larger scale, as well
as provide input data for detailed engineer-
ing of the processing plant. First results are
expected in the June quarter, 2015.
Bannerman’s Chief Executive Officer,
Len Jubber, said: “Bannerman’s com-
mitment to the Etango heap leach
demonstration plant programme, with
the support of our major shareholder
RCF via the investment from its Fund VI,
Construction activities underway at the demo plant site at Etango (photo: Bannerman Resources).
will enhance our early mover advantage
and ability to fast-track the development
of the Etango project in a rising uranium
price environment.
“The growing awareness of the looming
supply deficit is evident in the approximate
four-fold increase in the term contract mar-
ket year on year coupledwith the increased
spot and term prices in the past quarter.”
Etango is located in the Erongo uranium
mining region of Namibia which hosts the
Rössing and Langer Heinrich mines and
the Husab project which is currently under
construction by the Chinese state-owned
enterprise, China General Nuclear Power
Company (CGNPC). It is 73 kmby road from
Walvis Bay, one of Southern Africa’s busiest
deep-water ports through which uranium
has been exported for over 35 years. Road,
rail, electricity and water networks are all
located nearby.
The DFS on Etango envisages that the
project will produce 7-9 Mlb U
3
O
8
per year
for the first five years and 6-8 Mlb U
3
O
8
per year thereafter, based on an average
processing throughput of 20 Mt/a and an
average recovery rate of 86,9%. It estimates
cash operating costs of US$41/lb U
3
O
8
in
the first five years and US$46/lb U
3
O
8
over
the life of mine. The DFS estimates a pre-
production capital cost of US$870million.
Sibanye enjoys a good December quarter
Sibanye, listed on the JSE and NYSE,
achieved a record production of 14 079 kg
(452 700 oz) for the quarter ended
31 December 2014. Total cash cost and all-
in cost for the quarter will be approximately
R285 000/kg (US$790/oz) and R375 000/kg
(US$1 040/oz) respectively.
Gold production for the year ended
31 December 2014 was in line with guid-
ance at 49 432 kg (1,59 Moz). This is despite
the loss of over 500 kg due to the under-
ground fire at Driefontein early in the
year and the Eskom load shedding in the
latter half of the December quarter. Total
cash cost for the year of approximately
R295 000/kg (US$850/oz) and all-in cost
of approximately R376 000/kg (US$1 080/
oz) are also in line with previous guid-
ance. Capital expenditure of R3,3 billion
(US$300 million) was marginally lower than
guidance.
The Kloof, Driefontein and Beatrix opera-
tions produced 45 127 kg (1,45 Moz) of gold
for the year, which was just over 1 % higher
than in 2013. The Cooke operation contrib-
uted 4 305 kg (138 400 oz) during the seven
months of incorporation in Sibanye, with
the build-up progressing slower than antic-
ipated. This under-performance occurred
primarily at Cooke 4 shaft, resulting in the
initiation of a Section 189 restructuring
process.
Uranium production from the Cooke
operation continued uninterrupted from
May 2014, resulting in a stockpile of approx-
imately 180 000 lb at year-end. Uranium
production costs for the December quarter
averaged approximately US$24/lb.
Capital expenditure in 2015 is planned
to increase by 10 % to R3,6 billion (US$320
million), largely due to an increase in expen-
diture on projects to extend the operating
lives of the mines and on growth projects
such as Burnstone.