Peninsula Energy: Full DFS at Ross pending, positive economic assessment expanded to Lance

Peninsula Energy (ASX: PEN) has updated the market on the company's operations at the Lance Project in Wyoming, U.S.

Peninsula said that the positive preliminary results at Ross are being expanded to economic assessment of the entire Lance Project.

Results from a full Definitive Feasibility Study (DFS) are pending to be published, following completion of the owners review, optimisation work and an expanded economic assessment.

The initial DFS was focused exclusively on the Ross Project Area (Ross Permit Area and Ross Amendment Area), using the JORC Measured and Indicated resources of 8.95 million pounds of U308 delineated to date within that area.

Peninsula has now announced that the preliminary results of the Initial DFS are positive, which is particularly encouraging as the Ross Project Area covers only a small area and resource base of the larger Lance project.


The next step

Peninsula has now decided to expand the Initial DFS to cover the full Lance project area (Expanded DFS), including the JORC Resources of 41.4 million pounds and a proportion of the additional mineralised potential that has been modelled but is unclassified at this time.

The company expects that this will maximise the operational capacity and life of the project, and also present a more relevant assessment of the full economic value of the entire project.

At the same time as completing the Expanded DFS, Peninsula will conduct its owner’s review of the work performed to date, including a rigorous review of the major cost areas and wellfield design optimisation.

Given that the longest lead time in the Lance development is the permitting process, Peninsula enjoys the scope for this expansion and optimisation work without causing delay to the overall project’s timing.

Peninsula will release results for the Expanded DFS as soon as completed.


Lance drilling program

The Lance drilling program continues to identify high grade mineralisation.

Significant Intercepts include:


- 11.8 metres at 436ppm U3O8, including 2.9 metres at 890 ppm U3O8 from 197 meters;

- 7 metres at 390ppm U3O8 from 131 metres;

- 5 metres at 382ppm U3O8 from 147 metres; and

- 1.7 metres at 1,080ppm U3O8 from 77 metres.

Peninsula said that exploration drilling north of the Ross Permit Area extends roll front mineralisation, with results showing thick intervals of uranium mineralisation.

Drilling continues to add to resource the inventory.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19507/peninsula-energy-full-dfs-at-ross-pending-positive-economic-assessment-expanded-to-lance-19507.html