Transcript Slide 1
“Building a World Class Uranium Project” MineAfrica Presents: Investing in African Mining - December 2008 Safe Harbour This presentation contains certain forward-looking information about the Company that is intended to be covered by the safe harbour for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events. The information in this press release that relates to the Mineral Resources at the Etango Anomaly A Deposit is based on a resource estimate completed by Mr Neil Inwood who is a full time employee of Coffey Mining Ltd. Mr Inwood is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and types of deposits under consideration and to the activity which is being undertaken to qualify as Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, and is an independent consultant to Bannerman Resources and a Qualified Person as defined by NI 43-101. Mr Inwood consents to the inclusion in the press release of the matters based on his information in the form and context in which it appears. The information in this report that relates to the metallurgical test work undertaken on Etango Anomaly A Deposit samples was completed by Mr Gary Jobson who is a consulting metallurgist to Independent Metallurgical Operations Pty Ltd. Mr Jobson is a Member of The Australasian Institute of Mining and Metallurgy and has extensive experience relevant to the activity which is being undertaken. Mr Jobson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Exploration Results, is based on information reviewed by Mr. Clive Jones, who is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones is a nonexecutive Director of the company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.” Page 2 Highlights of 2008 Activity Identified new resource growth areas Increased Mineral Resource from 26.9 to 106Mlb U3O8 Strengthened Board & Management capability Commenced Feasibility Studies Established Namibian infrastructure and country head Raised over A$20 million Signed term sheet for an additional A$20 million capital raising Appointed CEO with operational and project development experience An emerging world class uranium producer Page 3 The Nuclear Future Uranium market not immune to the global credit crisis Recent Spot price movements lead by Hedge fund redemptions Rössing Spot Prices just now beginning to rebound Lungmen, Taiwan Production shortfall of ~10mlbs expected this year Long term pricing still high, more relevant to Etango Neckarwestheim, Germany Page 4 Obrigheim, Germany Capital Structure as at 20 Nov 2008 Issued & Outstanding Shares 167 million Share Price - ASX:BMN A$0.48 - TSX:BAN C$0.40 Options: Management & Directors 17.3 million Fully Diluted Shares 185 million Market Capitalisation Convertible Note Facility Management & Directors’ Ownership (fully diluted) Page 5 A$89m (US$74m) A$20 million 20% Management & Board Geoffrey Stanley, Non-executive Chairman • New York based, 25 years experience as a highly ranked analyst in Australia, Canada and US equity markets Len Jubber, Chief Executive Officer • Mining engineer with 20 years operations and leadership experience including an 8-year career launch at Rössing Mine, followed by 7 years as COO at Oceana Gold and most recently as MD and CEO for Perilya Clive Jones, Non-executive Director • Nathan McMahon, Non-executive Director • UK based, financial, technical and corporate experience in the mining sector David Tucker, Non-executive Director • Proven track record of successful mining ventures; specialised in project negotiations and acquisitions Alastair Clayton, Non-executive Director • 25 years experience in mineral exploration; strong record of corporate and technical successes 39 years industry experience largely as former Director for Homestake Gold’s Australian subsidiaries; and Barrick Mining Company (Australia) and Barrick Gold. Experience in uranium exploration. Peter Christians, Chief Operating Officer • Page 6 Namibian national, mining engineer with experience on large scale international projects. Also previously worked at Rössing uranium mine Namibia Modern, politically stable country with a long history of resource development & mining World class uranium province along mid-coastal region – produces ~8% of the world’s uranium Current uranium mining projects / operations include: • Rössing Mine commenced in ‘76 (69% Rio Tinto) • Langer Heinrich Mine commenced in ‘05 (Paladin) • Trekkopje Project (Areva/CGNC) - in construction • Valencia Project (Forsys / GFI) – near construction • Etango Project (Bannerman) – feasibility study • Rössing South Project (Extract/RIO) – resc drilling Page 7 Erongo Uranium Province Trekkopje (238 Mlbs) Valencia (63 Mlbs) Bannerman Tenements Road Rossing (+300 Mlbs) Power Line Railway Primary Uranium Deposit Etango EPL3345 Rossing South (Nil) Secondary Uranium Deposit Swakop River EPL3346 ETANGO (106 Mlbs+) Langer Heinrich (208 Mlbs) 0 Kilometres 50 Cape Town Page 8 ETANGO PROJECT WORLD CLASS URANIUM PROJECT Page 9 Etango Project In excess of 100Mlbs U3O8 Alaskite (granite) hosted mineralisation analogous to Rössing Over 37km of highly prospective stratigraphy First target explored, yielded world class resource Simple, low-cost, proven processing flow sheet Long-life potential Page 10 Etango 2.5km long, 100m wide Target 150M lbs U3O8 Block Model & Pit Shell Snapshot Mineralisation from near surface over 2.6km Western extensions Oshiveli extensions Includes; 81m @309, 83m @ 213 & 30m @552ppm U3O8 Large tonnage provides economies of scale Moderate to low strip ratio Mineralisation open at depth and to N, W and S. Higher grade ‘starter’ pit zones available Page 11 Ondjamba Etango Resource Estimate as at August 2008 Indicated Resources1 1 Low Cut (U3O8 ppm) Tonnes (mt)1 Grade (ppm) (mt)1 100 145 209 30.3 150 112.3 233 200 69.4 269 Inferred Resources1 Metal (U3O8) (mlbs) Low Cut (U3O8 ppm) Tonnes (mt)1 Grade (ppm) Metal (U3O8) (mt)1 (mlbs) 66.9 100 91.6 197 18.0 39.7 26.2 57.7 150 65.5 224 14.6 32.3 18.7 41.2 200 34.5 268 9.3 20.4 “(Mt)” refers to metric million tonnes equivalent to 2.204 mlbs. Reported at various cut offs using a bulk density of 2.62t/m3. Ordinary kriged estimate based upon 3m cut U3O8 composites. Block dimensions of 25m NS by 25m EW by 10m RL Total Resource of 145mt for 66.9mlbs (Indicated) & 91.6mt for 39.7mlbs (Inferred) 505 holes completed for 140,558m over a 2.6 km strike length Large amounts of metal also present at the higher cut-offs 67% Indicated & 33% Inferred - drilling ongoing to further upgrade confidence Current scale and mineral resource classification adequate to support full Feasibility Study Page 12 Project Focus – Recent Activity Updated resource estimate at the Etango open pit Advanced feasibility studies underway • Excellent preliminary metallurgical results • High recoveries at coarse grind sizes (~1000µm) • Low to moderate acid consumption (15- 20 kg/t) is highly probable • Recoveries up to 90% deemed achievable at ambient pressures and temperature • Potential for processing via Heap Leach being investigated • Geotechnical, hydrological, infrastructure studies underway • Environmental & Social Impact Studies Exploration commenced to build resource pipeline • Exploration re-focused to near pit environment Page 13 Community and Stakeholder meetings undertaken Etango Pit Environs Highly prospective targets adjacent to Etango pit area If proven, new resources here would significantly improve the project’s economics Numerous alaskite outcrops ranging from 1.3 to 3 km long over 22 km Recent Oshiveli drilling; 81m@309, 83m@213 & 30m@552ppm U3O8 Ondjamba zone equivalent to the “Rössing position” Page 14 Etango Development Timetable 2007 2006 2008 2009 2010 2011 Licences Granted …Rapidly progressing towards production EPA Approvals Res. Drilling (Etango) Interim Res. ‘A’ ‘A’ Resource upgrade Scoping Study TSX Listing Capital Raising To become a Top 10 World Producer Expand Exploration Resource Finalised ‘A’ Resource Base increasing Construction & Development EIA and Feasibility Studies Page 15 Financing & permitting 2012 Mining Exploration – Targets Galore ‘Gohare’ 2km long Target ??M lbs U3O8 ‘Ombuga’ 2 x 2km long each Over 37 km of prospective alaskite stratigraphy Target ??M lbs U3O8 Rossingburg ’13’ Rio 57.2m @ 230 ppm Target ??M lbs U3O8 Etango Pit A: First target drilled ‘Ombepo’ 2km long, ~100m wide ‘Ompo’ Target ??M lbs U3O8 >2km long, 100m wide 15 targets already identified Target ??M lbs U3O8 “Oshiveli” & ‘Onkelo’ Numerous large look-alike outcropping alaskite intrusions identified in region • • • • • Page 16 Oshiveli – Onkelo Rossingburg Ombuga Ompo Ombepo etc… 2 Bodies; 1.2 & 3km long, ~100m wide each Target ??M lbs U3O8 Etango 2.5km long, 100m wide Target 150M lbs U3O8 Ondjamba SE flank of dome extensive area under cover Exploration: Swakop River Project Surrounds Paladin Resources’ LANGER HEINRICH U deposit Bloedkoppie Prospect; •Extension of Langer Heinrich orebody •Extensive exposed areas of carnotite bearing calcretised sediments •Fieldwork confirms several square kilometers of potential •Outstanding target, not yet drilled Langer Heinrich Page 17 Summary Resource base in excess of 100mlbs U3O8 Advanced feasibility study Fully funded to development decision Building development & operations capability Sole remaining independent company with major uranium project in established region First mine could project Bannerman into the top 10 U producers Substantial exploration upside at Etango and Swakop projects BUILDING A WORLD CLASS URANIUM PROJECT Page 18