Peninsula Minerals reports maiden uranium resource at Lance projects

Peninsula Minerals (ASX: PEN) has reported an Initial JORC-compliant Resource Estimate for the Lance projects in Wyoming, USA.

The initial resource estimate is based on a database containing over 4,544 historic drill holes together with 281 holes completed by Peninsula between 2008 and 2010.

The Initial JORC-compliant Resource Estimate totalling 15.1Mlbs eU3O8 grading 507 ppm comprises of: an Indicated Resource of 4.0Mlbs eU3O8 grading 510ppm, an Inferred Resource of 11.1Mlbs eU3O8 grading 507ppm and additional mineralised potential of 50-80Mlbs eU3O8 within the Lance Project Area.

The drilling density in the two primary production areas at Ross and Barber, support the
classification of a portion of the total resource as Indicated.

Both the indicated and inferred resources are located in confined aquifers, which are a requirement for successful ISR mining and the positive historic ISR recovery test-work.

At Ross there is a combined indicated and inferred resource of 10.1Mlbs eU3O8. At Barber there is a combined indicated and inferred resource of 3.7Mlbs eU3O8.

External to the Ross and Barber Production Areas historic drilling has defined a further 1.3Mlbs eU3O8 of inferred resource.

The Lance project covers an area of over 120km² within which there is a combined total of at
least 305 line kilometres (190 miles) of known stacked roll fronts.

Of this total, only a small percentage has been explored with over 90% of the drilling concentrated within the more advanced Ross and Barber areas.

Based on the historic conversion rate from roll front length to a drill-defined resource the mineralised potential of the Lance Projects, which is in addition to the JORC-compliant resource, is assessed at between 46 and 81 Mlbs eU3O8.

John Simpson, Chairman, said that with the completion of the initial resource estimate, a significant milestone in the development of the Lance Uranium projects has been achieved.

The company said On-going drilling will both enhance the grade and definition of the existing drill-defined resources at the Ross and Barber production areas and serve to continuously convert areas of mineralised potential into JORC-compliant resources.

Peninsula said the positive results to date provide confidence that mining will commence within the targeted time-frame with production continuing over an extended mine-life.

http://www.proactiveinvestors.com.au/companies/news/6397/peninsula-minerals-reports-maiden-uranium-resource-at-lance-projects-6397.html