Sunday, 19 February 2012

Peninsula Energy nears Resource upgrade at Lance with further high grade uranium intersections

Peninsula Energy (ASX: PEN) has delivered more high grade intersections from drilling at the Lance Projects in Wyoming increasing the potential for a substantial upgrade of the Inferred Resource.

Highlight intersections include:

- 3.8 metres at 1,220 parts per million (ppm) eU3O8, including 1.5 metres at 2,330ppm;
- 2.3 metres at 1,400ppm eU3O8 including 1.2 metres at 2,140ppm;
- 3.3 metres at 864ppm eU3O8 including 0.8 metres at 2,120 ppm;
- 3.2 metres at 840ppm eU3O8 including 0.9 metres at 1,780ppm; and
- 2.4 metres at 1,080ppm eU3O8 including 1.2 metres at 1,710ppm.

Peninsula is targeting a conversion of the Inferred Resource to the higher confidence Indicated category in the proposed Kendrick production unit located to the west of the Ross production unit, with a Resource recalculation planned for late March.

Ross is the most advanced area at the Lance Project, which is an In Situ Recovery (ISR) uranium project.

Peninsula is also undertaking regional exploration to locate the mineralised portions of over 312 lineal kilometres of mapped redox boundaries.

The company has completed a further 40 exploration drill holes during February for a total of 11,125 metres at the Lance Projects.

A total of 32 holes encountered mineralisation, 16 holes encountered significant mineralisation and nine holes reported multiple intersections of stacked uranium.

The most recent drilling in this area has targeted the K4 and K5 roll fronts with significant mineralisation intersected in the Fox Hills sandstones.

Drilling continues to produce thick high grade intercepts along an extensive roll front trend, and the area is now categorised as a key area for resource expansion given its close proximity to the proposed Central Processing Plant site.

Recent drilling on the K4 and K5 roll fronts has confirmed along-strike continuity of over 500 metres together with horizontal widths of up to 60 metres.

Two drill rigs are currently in operation with one dedicated to the along strike exploration and one to intersecting the high grade nose of the roll front.

Peninsula is looking to become a uranium producer in late 2012 to 2013 having completed Feasibility and Economic Studies of its Ross and Lance uranium Projects.

Advancing Towards Approvals

Peninsula announced earlier this week it is not expecting delays to the Nuclear Regulatory Commission’s (NRC) review and approval of its Ross ISR uranium project following a decision to grant standing to the objections.

Under NRC’s governing federal statute, the Atomic Energy Act of 1954 and NRC regulations and policy, NRC Staff have stated that it issues licences when their review is complete – this would apply to the Ross ISR Project.

Late last month the NRC issued Requests for Additional Information to support its environmental and technical review of Peninsula’s wholly owned subsidiary Strata Energy’s application for a Source and 11(e).2 Byproduct Material License ahead of schedule.

Early issuance of the RAIs marks another significant milestone in the overall process and a speedy response is expected to have a positive impact on the permitting schedule.

Another major plus for the project is the acquisition of the site for the proposed central processing plant by Peninsula, announced last week.

The 0.97 square kilometre (240 acre) site acquisition ensures the necessary owner’s consent to mine required by the Wyoming Department of Environment Quality is now finalised.

The department will issue the Permit to Mine once Strata Energy lodges the financial surety.

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