Etango identifies capital savings at Namibia uranium project

PERTH (miningweekly.com) – A processing optimisation study at the Etango uranium project, in Namibia, has reduced the expected capital costs by about $73-million, from a previous estimate of $870-million.

Project developer Bannerman Resources on Thursday reported that the largest capital reductions came from a simplified crushing circuit, and confirmation that ion-exchange was a viable alternative to solvent extraction.

Potential operating cost savings have also been identified on the back of improved recovery and reduced reagent consumption, leading Etango to formulate an update of the previously completed definitive feasibility study (DFS) targeting operating cost savings of about $3/lb of uranium oxide.

Etango told shareholders that a range of further potential operating cost saving opportunities, such as reduced maintenance assumptions associated with capital reductions, and the operating benefits of a simplified processing circuit, would also be considered during the definitive level engineering and procurement, which would be conducted under the DFS update.

Furthermore, a membrane study, targeting potential improvements to capital and operating costs deriving from membrane acid recovery and the potential for uranium recovery by nano-filtration, would also be undertaken and was due for completion in the first quarter of 2018.

The completed processing optimisation study and the membrane study were both expected to provide input to the DFS update, which would continue in 2018.

The previous DFS estimated that the project would cost about $870-million to develop.

Based on average yearly production of 7.2-million pounds of uranium oxide over an initial mine life of 15.7 years, the Etango project is expected to have a net present value of $419-million and a post-tax internal rate of return of 15%.