TORONTO (miningweekly.com) – Uranium explorer Bannerman Resources has lodged a mining licence application for its 80%-owned Etango project, in Namibia.

The firm made the application to the country's Ministry of Mines and Energy and has also lodged an environmental and social impact assessment with the Namibian Ministry of Environment and Tourism.

Last week, Bannerman published the results of a preliminary feasibility study on the Etango project and said it would immediately start work on a definitive feasibility study.

The preliminary feasibility study indicated a pre-tax internal rate of return of 22% for flotation concentrate leaching, and a pay-back period of three to four years, based on a long-term uranium price of $70/lb uranium oxide.

The study modelled output at five-million to seven-million pounds of uranium oxide a year over 16-year mine life.

If all goes to plan, the company hopes to begin construction of the mine in 2011 and start production in 2013.

Bannerman is listed on the Australian, Toronto and Namibian stock exchanges. Shares in the company slid 6% on Monday, to C$0,63 apiece by 11:11 in Toronto.

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