Bannerman Namibian uranium license validity challenged

The validity of an exploration licence hosting Bannerman Resources' Goanikontes Anomaly A deposit in Namibia, which it intends to mine by 2011, is being challenged in the country's High Court.

WINDHOEK -  The only thing known about Savanna Marble CC is that it has identified "attractive marble for exports" in Namibia's uranium-rich Erongo region, but is short of "N$1.6 million or (US$228,690) for the purchase of additional equipment and as working capital", according to a spatial development initiative to promote the country's coastal areas.

But the small outfit (it is a closed corporation) is likely to jeopardise ASX- and TSX-quoted Bannerman Resources Ltd. [(ASX: BMN; TSX: BAN)'s plans of exploiting Namibia's rich uranium deposits.

On Thursday the Namibian-focused Australian company announced that it is facing court action in the south western country over an exploration tenement in the Erongo region, EPL3345, brought about by Savanna Marble, which is seeking an order to declare the granting of the licence null and void.

Savanna, which says the EPL is overlapping on its tenement in the same area, has sued Namibian Minister of Mines and Energy, Bannerman's 80% owned subsidiary Bannerman Mining Resources Namibia and one Robert D. Wirtz, whom the Australian company says has no connection with it.

It is also seeking an order reviewing and correcting or setting aside the decision taken by the Minister of Mines and Energy in Namibia to grant Bannerman Namibia EPL3345 with exclusive mineral rights for the nuclear fuel group of minerals over the area covered by Savanna's EPL3045.

EPL3345, which the company calls Welwitschia after a desert plant, hosts Bannerman Resources' Goanikontes Anomaly A deposit, where it is planning a US$300 to US$400-million uranium mine.

In September Bannerman Resources realised a scoping study on the deposit that indicated it to be economically viable, and announced that it could begin production in mid-2011.

It said mining and milling would be similar to that of diversified giant Rio Tinto's nearby Rössing mine, with a maximum production target of 4,000 tons per year yellow cake.

On Friday this week, nevertheless, it was on the defensive over Anomaly A, saying the court action will have no effect on its work at the deposit.

Mineweb could not confirm with the Ministry of Mines if Namibian law allowed for the overlapping mining permits for different minerals, as stated by Peter Batten, Bannerman's managing director.

"This is quite common," said Batten. "Apart from the Savanna dimension stone prospecting licence there is also a mining licence for copper, a prospecting licence for limestone and an application for mica. Bannerman Namibia does not expect that Savanna's right to mine dimension stone will impact Bannerman's ability to explore for and mine uranium in the overlapping parts of its licences."

He added, "The proceedings are an attack on the decision of the Namibian Minister for Mines to grant EPL3345 and the company has formed the view that the proceedings have no proper foundation and are unlikely to succeed."

Bannerman Resources' shares opened at CAN$3.160, down 0.63%, in Toronto and at A$3.400, down 6.85%, on the ASX.

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