Australia- Namibia- and Toronto-listed uranium exploration and development company Bannerman Resources on Monday said it had received board approval to proceed with a definitive feasibility study on its 80%-owned Etango project, in Namibia, following positive results from the preliminary 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 expected capital costs were $555-million to facilitate flotation concentrate leaching.

Expected operating costs for flotation concentrate leaching were $38/lb uranium oxide in the first five years, with an average life-of-mine cost of $41/lb uranium oxide.

The company said production was estimated to start in late 2013, with modelled output of five-million to seven-million pounds of uranium oxide a year over 16-year mine life.

Bannerman also said it was on schedule for lodgement of a mining licence application by the end of  the year.

The definitive feasibility study was scheduled for completion in early 2011.

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