Proactiveinvestors United Kingdom

Peninsula Energy executive chairman raises stake following enhanced economics at Lance

Thu, 17 May 2012 07:12:00 +0100

Peninsula Energy (ASX: PEN) executive chairman Gus Simpson has increased his shareholding in the company by 1.4 million shares after the company earlier this month upgraded the economic viability of the Lance In-Situ Recovery (IRU) uranium projects in Wyoming.

The move demonstrates confidence in Peninsula, with Simpson acquiring the shares on-market for a total consideration of A$49,353, providing an average entry price of about $0.035.

Shares in the company rallied 30.3% to $0.04 intra-day today, a day when the broader market wiped off 7.8 points to sit at 4,206.9 points at 3.16pm (AEST).

Not only has Peninsula delivered enhanced economics for Lance, including a net present value (8%) of US$254 million, in its recently completed Feasibility Study, but the company is advancing towards meeting yet another milestone at its Ross ISR uranium project with the impending completion of a review of the company’s licence application.

The company announced today the United States Nuclear Regulatory Commission has advised wholly owned subsidiary Strata Energy that its responses to the Requests for Additional Information (RAI’s) on the Ross Project have been deemed acceptable to complete the licence application review.

Importantly, this means the progress towards the issuance of a Source Material Licence continues as expected.

Ross is the most advanced area at the Lance Project, located in the Powder River Basin.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Peninsula Energy valued at almost double current share price by broker

Tue, 08 May 2012 06:00:00 +0100

Peninsula Energy (ASX: PEN) has received an increased six month price target of A$0.085 and a buy recommendation from a broker.

The following is an extract from the broker report.

Major Upgrade to Feasibility Study Economics

Peninsula Energy Limited (“Peninsula”, “PEN”, “Company”) has announced a major update to the Feasibility Study for its Lance In Situ Recovery (“ISR“) Uranium Projects, located in Wyoming.

The previous study included only one production unit; however, the new study includes three contiguous production units, all of which have significant JORC compliant resources.

Some assumptions have been made around conversion of inferred resource to the indicated or better category.

We believe these are appropriate given the large resource potential in the region. Resource has never been a key risk for this project, in our opinion.

The headline number of the study is a Net Present Value (8%) of US$254m vs the initial feasibility for the Ross production unit alone of US$46m.

The Expanded Economic Study reported Net Present Value (6%) of US$207m. The key difference in the recent study is increased mine life and produced uranium.

We have adjusted our numbers to be largely in line with the Feasibility Study and have a revised valuation for the project of A$202m (NPV10), increased from A$137m.

Consequently, our valuation has increased from 12.4 to 13.2cps and our price target from 8.1 to 8.5cps.

Funding Proposals Have Been Received

The new feasibility study will form the basis for funding proposals, which we believe will be largely debt but with an equity component.

Non Disclosure Agreements have been signed with several internal banking and uranium firms that are reviewing the project in the Company data room.

Until structure and timing of funding is clearer, investors will need to look at past funding success as a measure of the likely path forward.

The Company has cash of $13m and requires $78m in pre start-up capital. In the context of the size of the project, which should deliver >$600m in profit, this is a relatively small amount of capex.

Permitting Timeline Becoming More Visible

The Company has only two key permits remaining to be granted. The Permit to Mine, granted by the Wyoming Department of Environmental Quality, is contingent only upon posting of a reclamation bond for ~US$9m.

The Source Material License schedule calls for grant prior to 12th November 2013; however, the process is ~6 months ahead of schedule by our reckoning.

Pre-construction activity is likely before final grant of the license but we have pushed back our start-up date from mid-2013 to early 2014.

This coincides with the end of the Megatons to Megawatts program, which should facilitate competitive sale and purchase agreements.

Transition to Development and Production Underway

At the core area of its Lance Projects, the Company has evolved from the exploration phase to pre-development, with completion of feasibility, Decision to Mine and appointment of senior management with ISR and project construction experience.

Exploration and resource growth remains a key part of the business, both at Lance and also at the Karoo Project, in South Africa, where recent results have been excellent.

The next six months are likely to provide significant positive catalyst and share price appreciation as well as a positive shift in industry sentiment, in our view. We rate PEN as a Buy with a price target of 8.5cps, previously 8.1cps.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Peninsula Energy appoints new chief operating officer

Thu, 03 May 2012 02:10:00 +0100

Peninsula Energy (ASX: PEN) has appointed Glenn Black to the role of chief operating officer.

Black has 36 years experience in the mining industry in senior management and operational positions, including extensive experience in mine/plant construction, project management, development and implementation.

He was previously employed for the last 20 years with the De Beers Mining Group, most recently at Debswana Diamond Company, the world’s leading producer of diamonds by value, where he held senior construction, engineering and project management positions.

His experience at De Beers included direct involvement in the building and commissioning of multiple mines, other plant and infrastructure.

Black is a resident of and will be based in South Africa to oversee the broader development of Peninsula’s projects, the review of complimentary projects and the direct management of all aspects of the Karoo Projects as chief executive officer of wholly owned subsidiary Tasman Pacific Minerals.

Gus Simpson, chairman, said, “Glenn has an extensive development/operational background and his appointment reflects the company’s intent to accelerate the development of its projects.”

Peninsula is working towards a maiden JORC Resource at the Karoo Uranium Projects with a new drilling campaign at the highly prospective Site 45.

Last month the company received the necessary approvals to begin drilling from the South African Department of Mineral Resources.

Drilling is aiming to confirm historic mineralisation of 4.8 million pounds of uranium and test the exploration potential at Site 45.

The historic work returned a grade in excess of 700 parts per million of uranium in two sandstone units contained within the Davidskolk Member, including maximum values of 4,210 parts per million uranium and 1,372 parts per million molybdenum.

Karoo exploration potential

Preliminary geological studies have estimated a combined exploration potential of 30 to 60 million tonnes at 700 to 1,400 parts per million for 90 to 150 million pounds of uranium for Karoo.

Peninsula is targeting the delineation of 30 million pounds of uranium over the next 12 months.

The company has prioritised 10 high ranking drill targets across all six of its project areas.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Peninsula Energy works towards maiden uranium Resource at Karoo with start of drilling

Wed, 11 Apr 2012 01:07:00 +0100

Peninsula Energy (ASX: PEN) is set to begin drilling at the highly prospective Site 45, part of the Karoo Uranium Projects, in South Africa after receiving the necessary approvals from the Department of Mineral Resources.

Drilling is aiming to confirm historic mineralisation of 4.8 million pounds of uranium and test the exploration potential at Site 45.

The historic work returned a grade in excess of 700 parts per million of uranium in two sandstone units contained within the Davidskolk Member, including maximum values of 4,210 parts per million uranium and 1,372 parts per million molybdenum.

This near surface mineralisation occurs in broad, stacked paleochannels with an apparent northwest to southwest trend.

Importantly, this drilling is anticipated to lead to the definition of a maiden JORC Resource.

Gus Simpson, executive chairman, said, “Site 45 has significant historic mineralisation and following on from the success of the drill programs at Site 22 and 29, successful confirmation drilling at Site 45 will expedite the calculation of the maiden JORC-compliant estimate for the Karoo.”

Site 45

Site 45 comprises a contiguous area of 489 square kilometres. An initial non-invasive exploration program undertaken by Peninsula in December last year returned intersections exceeding 200 parts per million.

Notable assays included 2.8 metres (9.2 feet) at 1,095 parts per million uranium from 13.8 metres (45.4 feet) and 2.3 metres (7.7 feet) at 592 parts per million from 14.4 metres (47.4 feet).

Karoo exploration potential

Preliminary geological studies have estimated a combined exploration potential of 30 to 60 million tonnes at 700 to 1,400 parts per million for 90 to 150 million pounds of uranium for Karoo.

Peninsula is targeting the delineation of 30 million pounds of uranium over the next 12 months.

The company has prioritised 10 high ranking drill targets across all six of its project areas.

Peninsula Energy increases footprint at Lance Uranium Projects, Wyoming

Thu, 05 Apr 2012 05:03:00 +0100

Peninsula Energy (ASX: PEN) has secured land and mineral rights for exploration and mining at the company’s Lance In-Situ Recovery (ISR) Uranium Projects in Wyoming, United States.

The acquisition was made through Peninsula’s wholly owned U.S. subsidiary Strata Energy.

Executive chairman Gus Simpson said the increase in surface and mineral acreage highlighted the success of Strata’s land acquisition program.

“What is currently held more than supports targeted exploration and production requirements at the Lance Projects,” Simpson said.

Since June 2010, Strata has increased its land ownership and access by 168% to more than 107.8 square kilometres and its mineral leases by 46% to more than 122.2 square kilometres.

The Lance Projects host a JORC Resource containing 51.5 million pounds of uranium and 4.9 million pounds of vanadium.

Commercial mining operation at Lance

Earlier this week Peninsula made the landmark decision to proceed with a commercial mining operation at the Lance Projects

Construction at Lance is expected to take between six and nine months, beginning in the second half of 2012, with first production targeted for 2013. Mining is subject to final permitting and project financing.

Results from a Feasibility Study are expected to be published on or before the third week of April.

Peninsula Energy in milestone decision to proceed with a commercial mining operation at Lance

Tue, 03 Apr 2012 03:17:00 +0100

Peninsula Energy (ASX: PEN) will proceed to a commercial mining operation at the Lance In-Situ Recovery (ISR) Uranium Projects in Wyoming, after the landmark decision was made by the board.

Gus Simpson, executive chairman, commented on the milestone:

“The formal decision to proceed to a commercial mining operation at Lance represents the completion of the pre-development stage at the projects.

"With financing advancing well and permitting progressing on schedule we are confident that Peninsula will be a uranium producer in the near term."

Construction at the Lance Projects is estimated at six-nine months commencing in the second half 2012, with first production targeted for 2013. Mining is subject to final permitting and project financing.

MAJOR NEWS PENDING: Peninsula added that it is anticipated that the results of the Feasibility Study will be published on or before the third week of April.

Lance delivers upgraded uranium resource

In some more good news for Peninsula, earlier in the week the company announced a 24.3% increase in the total JORC Resource to 51.5 million pounds of uranium.

Just as important is the increase in the confidence categories, with a 30.7% boost in the Measured and Indicated Resource to 14.7 million pounds of uranium.

Also - the vanadium Resource increased to 4.9 million pounds V2O5.

Peninsula has been very clear in mapping the exploration road ahead, with two drilling rigs deployed in the Kendrick area drilling with one dedicated to the along strike exploration and one to intersecting the high-grade nose of the roll fronts.

Resource breakdown

Within the Ross Production Unit there is a combined Measured, Indicated and Inferred Resource of 9.0 million pounds uranium with an average grade of 525ppm and an average GT of 0.55.

At Kendrick the combined Measured, Indicated and Inferred Resource totals 29.1 million pounds uranium at an average grade of 494ppm and an average GT of 0.47.

At Barber the combined Measured, Indicated and Inferred Resource totals 13.4 million pounds uranium at an average grade of 446ppm and an average GT of 0.43

Lance projects, development plan

The plan for the Lance projects To build a 2.18mlbs per year ISR operation inclusive of:

– Ion exchange facility, centralised resin stripping ,drying and packaging plant at Ross (CPP).
– Remote ion exchange facility at Barber trucking resin to CPP.

Production plan

Commence production in 2012/13:

– Phase 1 - 750klbs p.a. Ross production unit; Capex. $63 million.
– Phase 2 – 750klbs p.a. Kendrick production unit; Capex. $21 million.
– Phase 3 – 750klbs p.a. Barber production unit; Capex. $60 million.
– Production expansion target of 3mlbs per year by 2017.

Peninsula Energy names new CEO to head up Strata Energy

Mon, 02 Apr 2012 07:03:00 +0100

Peninsula Energy (ASX: PEN) has appointed Ralph Knode as chief executive officer of its subsidiary Strata Energy.

Knode has more than 20 years of experience in uranium mine construction, mine operations and property evaluation, throughout North America, Kazakhstan and Australia.

He joins Strata from Uranium One, one of the world’s largest publicly traded uranium producers, where he was senior vice president of projects for the past four years.

During that time Knode worked across all Uranium One operations and joint ventures, including overseeing four operating uranium mines in Kazakhstan, as well as the start-up of Australia’s fourth uranium mine – Honeymoon.

Prior to joining Uranium One, Knode was with Cameco Corporation as director of operations and construction at the Inkai Joint Venture, an in-situ recovery project in Kazakhstan between Cameco and Kazatomprom, Kazakhstan’s State owned Uranium entity.

Peninsula Energy executive chairman Gus Simpson said, “Ralph is an experienced uranium industry executive and is well qualified to assume leadership of the Lance Projects as the company transitions to a uranium producer.”

The company revealed today it is on track to uranium production from the Lance Projects in Wyoming in 2013, where the resource continues to grow.

High grade results announced during early 2012 has provided a 24.3% increase in the total JORC Resource to 51.5 million pounds of uranium.

Just as important is the increase in the confidence categories, with a 30.7% boost in the Measured and Indicated Resource to 14.7 million pounds of uranium.

Also, the vanadium Resource increased to 4.9 million pounds.

Peninsula’s plan for the Lance Projects is to build a 2.18 million pound per year in-situ recovery operation, expanding production to 3 million pounds per year by 2017.

Peninsula Energy's ongoing drilling success delivers upgraded uranium resource at Lance

Mon, 02 Apr 2012 03:40:00 +0100

Peninsula Energy (ASX: PEN) remains on the road to uranium production from the Lance Projects in Wyoming in 2013, (subject to regulatory approval), where the resource continues to grow.

The string of high grade results announced during early 2012 has provided a 24.3% increase in the total JORC Resource to 51.5 million pounds of uranium.

Just as important is the increase in the confidence categories, with a 30.7% boost in the Measured and Indicated Resource to 14.7 million pounds of uranium.

Also - the vanadium Resource increased to 4.9 million pounds V2O5.

Peninsula has been very clear in mapping the exploration road ahead, with two drilling rigs deployed in the Kendrick area drilling with one dedicated to the along strike exploration and one to intersecting the high-grade nose of the roll fronts.

Gus Simpson, executive chairman, commented on the positive news for the company: “We are very pleased with the resource upgrade and the ongoing success of the drilling program, particularly the outstanding results at Kendrick.

"The drilling continues to convert areas of mineral potential into JORC resources and to enhance resource status from Inferred to Indicated and Measured. This has added significant value to the Lance projects”.

JORC Resource upgrade - the back story

Recent drilling focused on converting resources from Inferred to Indicated in the proposed Kendrick production unit, which is located to the west of the Ross production unit.

Peninsula said that drilling along the Kendrick roll front system is producing consistent thick high-grade intercepts, which has resulted in its prioritisation due to its resource expansion potential and its proximity to the proposed site of the Lance Central Processing Plant.

The drill density and demonstrated continuity of mineralisation at Kendrick has resulted in a high proportion of Inferred Resources being upgraded to Indicated category.

The resource has been calculated by applying a combined constraint of a grade thickness product (GT) of 0.2 contour and 200ppm U3O8. These cut offs are considered to be appropriate for both calculating and reporting of in-situ recovery (ISR) resources at the Lance Project.

Resource breakdown

Within the Ross Production Unit there is a combined Measured, Indicated and Inferred Resource of 9.0 million pounds uranium with an average grade of 525ppm and an average GT of 0.55.

At Kendrick the combined Measured, Indicated and Inferred Resource totals 29.1 million pounds uranium at an average grade of 494ppm and an average GT of 0.47.

At Barber the combined Measured, Indicated and Inferred Resource totals 13.4 million pounds uranium at an average grade of 446ppm and an average GT of 0.43

Lance projects, development plan

The plan for the Lance projects To build a 2.18mlbs per year ISR operation inclusive of:

– Ion exchange facility, centralised resin stripping ,drying and packaging plant at Ross (CPP).
– Remote ion exchange facility at Barber trucking resin to CPP.

Production plan

Commence production in 2012/13:

– Phase 1 - 750klbs p.a. Ross production unit; Capex. $63 million.
– Phase 2 – 750klbs p.a. Kendrick production unit; Capex. $21 million.
– Phase 3 – 750klbs p.a. Barber production unit; Capex. $60 million.
– Production expansion target of 3mlbs per year by 2017.

Peninsula Energy: high grade uranium discoveries continue from Lance

Thu, 29 Mar 2012 01:18:00 +0100

Peninsula Energy (ASX: PEN) is on the road to commence ISR production from the Lance Projects in Wyoming in 2012/13 (subject to regulatory approval).

Peninsula said that drilling along the Kendrick roll front system is consistently producing thick high grade intercepts.

This has resulted in its prioritisation due to its resource expansion potential and its proximity to the proposed site of the Lance Central Processing Plant.

The drill density and continuity of mineralisation is expected to result in a high proportion of Inferred Resources being upgraded to Indicated category.

An important outcome from the drilling of the last 85 holes is that 63 of these holes encountered mineralisation, with 46 holes having greater the 100ppm - with seven holes hosting multiple intersections of stacked uranium.

Highlights from this latest drilling program include:

- 2.6 metres at 1,260ppm eU3O8 (GT 1.07), including 2 metres at 1,560ppm eU3O8;
- 4.4 metres at 460ppm eU3O8 (GT 0.67);
- 8.5 metres at 203ppm eU3O8 (GT 0.57); and
- 5.8 metres at 246ppm eU3O8 (GT 0.47).

These results follow on from the February results from Kendrick which included:

- 4 metres at 2,340ppm eU3O8, including 2.6 metres at 3,420ppm eU3O8;
- 3.3 metres at 1,100ppm eU3O8, including 1 metre at 2,760 ppm eU3O8; and
- 2.7 metres at 920ppm eU3O8, including 0.8 metres at 2,300 ppm eU3O8.

Peninsula currently has a JORC Resource of over 41 million pounds of uranium.

Lance projects, development plan

The plan for the Lance projects To build a 2.18mlbs per year ISR operation inclusive of:

– Ion exchange facility, centralised resin stripping ,drying and packaging plant at Ross (CPP).
– Remote ion exchange facility at Barber trucking resin to CPP.

Production plan

Commence production in 2012/13:

– Phase 1 - 750klbs p.a. Ross production unit; Capex. $63 million.
– Phase 2 – 750klbs p.a. Kendrick production unit; Capex. $21 million.
– Phase 3 – 750klbs p.a. Barber production unit; Capex. $60 million.
– Production expansion target of 3mlbs per year by 2017.

Additional plans

Continue to delineate 95-145mlbs of uranium mineralisation through exploration within the other 11 project areas, and exploration in the areas between the 13 projects.

Peninsula has also indicated a potential to acquire other projects.

Peninsula Energy acquires land to support production at Lance Uranium Project

Mon, 27 Feb 2012 01:35:00 +0000

Peninsula Energy acquires land to support production at 41.5mlb Lance Uranium Project
Peninsula Energy (ASX: PEN) has taken up 34.5 acres close to the proposed Ross Central Processing Plant, to facilitate construction of the plant and the first production unit at Ross.

The acquisition was made through Peninsula’s wholly owned US subsidiary Strata Energy.

Executive chairman Gus Simpson said the acquisition of the land which is in immediate proximity to the proposed plant, would “facilitate the expanded exploration and the proposed development of the Lance projects”.

The acquired land includes buildings that can be used for field office operations and related storage, along with sufficient open land, a residential water well, wastewater disposal system and related zoning to allow for lay-down yards and a construction camp.

Control of the water rights is important for mining and restoration operations.

Peninsula last week provided a boost to the economics of the Lance Projects, in Wyoming, U.S., with a string of high grade results.

The latest highlights included 4 metres at 2,340 parts per million (ppm) uranium equivalent, including 2.6 metres at 3,420ppm uranium equivalent.

Simpson told Proactive Investors last week that production at the Lance Projects remains on track for early 2013.

Peninsula Energy: Uranium discoveries at Lance continue to be better than expected

Fri, 24 Feb 2012 00:25:00 +0000

Peninsula Energy (ASX: PEN) is on the road to production at the Lance Projects in Wyoming, U.S., and providing a boost to the economics of the project is a continued string of high grade results.

The latest highlights from Kendrick include:

- 4 metres at 2,340ppm eU3O8, including 2.6 metres at 3,420ppm eU3O8;
- 3.3 metres at 1,100ppm eU3O8, including 1 metre at 2,760 ppm eU3O8; and
- 2.7 metres at 920ppm eU3O8, including 0.8 metres at 2,300 ppm eU3O8.

These results follow on from those delivered to the market earlier in the month, including:

- 9.4 metres at 485ppm eU3O8, including 1.7 metres at 1,620 ppm eU3O8;
- 1.2 metres at 1,965ppm eU3O8, including 0.8 metres at 2,990 ppm eU3O8; and
- 2.3 metres at 730ppm eU3O8, including 0.9 metres at 1,140 ppm eU3O8.

The current drilling program is targeted at increasing the resource, and also the confidence categories to Indicated from Inferred, with an updated resource forecast for delivery in around a month's time. Two rigs are active at the moment.

Gus Simpson, managing director, told Proactive Investors today that drilling results from Lance continue to be 'beyond our expectations', while adding production remains on target for early 2013.

The proposed Kendrick production unit is located to the west of the Ross production unit. Drilling in this area has targeted the K4 and K5 roll fronts with significant mineralisation intersected in the Fox Hills sandstones. (See picture).

The drilling along the Kendrick roll front system is consistently producing thick high grade intercepts which has resulted in its prioritisation due to its resource expansion potential and its proximity to the proposed site of the Lance Central Processing Plant.

K4 and K5 adjacent to K3

The K4 and K5 roll fronts are located to the east of and adjacent to the K3 roll front trend which is down-gradient from the main roll front within the permit area. The expectation is that much of the inferred material within these areas will be re-classified as indicated.

The K3, K4 and K5 roll fronts are currently open-ended and the most recent drilling has targeted the northern extensions of these roll front trends as well as defining the nose position.

Drilling will continue to test both the northern and southern extensions of these trends. 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.

Peninsula said that it has also become apparent that the K4 and K5 trends merge towards the north producing wide areas of continuous mineralisation.

They also appear to be strike-parallel to the K3 roll front which is continuous for around 3 kilometres. These trends and the consistent high grade, thick intersections being returned have significant implications for the resource potential of the Kendrick area.

Peninsula Energy updates market on NRC licensing process

Fri, 24 Feb 2012 00:17:00 +0000

Peninsula Energy’s (ASX: PEN) wholly owned subsidiary Strata Energy and the Nuclear Regulatory Commission (NRC) are appealing the decision by the Atomic Safety and Licensing Board to grant standing to objections regarding the Ross In Situ Recovery (ISR) uranium project.

In the appeal documents, the NRC and Strata state that the Atomic Safety and Licensing Board erred in several areas in its decision to grant standing and that the joint petitioners hearing request and intervention petition should have been wholly denied.

The NRC and Strata are calling for the decision to be reversed and proceedings terminated.

Peninsula Energy executive chairman Gus Simpson previously said based on previous licence reviews the grant of standing is a procedural matter.

Importantly, the company does not anticipate delay to the review process or grant of the Source Material License.

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 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.

Ross is the most advanced area at the Lance Project, where 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.

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.

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

Sun, 19 Feb 2012 21:42:00 +0000

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.

Peninsula Energy: Ross ISR uranium project approval meeting timeframe

Mon, 13 Feb 2012 07:38:00 +0000

Peninsula Energy (ASX: PEN) is not expecting delays to the Nuclear Regulatory Commission’s (NRC) review and approval of its Ross In Situ Recovery (ISR) uranium project following a decision to grant standing to the objections.

Executive chairman Gus Simpson said, “Based on previous licence reviews the grant of standing is a procedural matter and the company does not anticipate delay to the review process or grant of the SML (Source Material License).

“Also the company's legal team continues to review all matters and respond appropriately.”

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.

Also, the NRC’s Part 2 regulations specifically do not allow the litigation of environmental-based contentions until the relevant 10 CFR Part 51 environmental analyses embodied in its Supplemental Environmental Impact Statement is complete.

NRC has the right to, and on the basis of the Requests for Additional Information (RAIs) are likely to, address the contentions raised by the NRDC and PRBRC in the soon to be produced Ross ISR Project Supplemental Environmental Impact Statement.

Late last month the NRC issued RAIs to support its environmental and technical review of 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.

Ross is the most advanced area at the Lance Project, which is an ISR uranium project.

Peninsula Energy clears final external issue towards uranium mining permit at Lance

Mon, 13 Feb 2012 02:48:00 +0000

Peninsula Energy (ASX: PEN) has crossed the final external hurdle to secure the Permit to Mine for its Lance Uranium Projects in Wyoming after acquiring the site of its proposed central processing plant.

The move is another step towards the company’s goal of become a uranium producer in late 2012 to 2013, having completed feasibility and economic studies of its Ross and Lance uranium Projects.

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

This allows the department to issue the Permit to Mine once Peninsula’s wholly-owned subsidiary Strata Energy lodges the financial surety.

Peninsula has also taken ownership of the Oshonto reservoir and the rights to access the water resource for the well field and central processing plant operations, 100% of the mineral rights over the property and surface and mineral rights to a further 4 square kilometres (1000 acres) to the north of the Ross Production unit.

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

Peninsula’s current drilling strategy is aimed at converting inferred resource to indicated resource as well as undertaking regional exploration that aims to locate the mineralised portions of over 312 linear kilometres of mapped redox boundaries.

The majority of this drilling has been focussed on converting inferred mineralisation to an indicated category in the proposed Kendrick production unit located to the west of the Ross production unit.

It has successfully intersected thick intervals of high grade uranium mineralisation due to targeting the nose of the roll front systems.

The Lance projects are located in north-eastern Wyoming, about 32 kilometres north of Moorcroft and adjacent to the ranching community of Oshoto. Moorcroft lies adjacent to the I-90 Interstate highway. From the Interstate turn off there is approximately eight kilometres of paved road followed by approximately 48 kilometres of graded roads.

Within the project areas, existing land uses include: livestock grazing, oil production, fodder crop production, communication, power lines and a road transportation network.

Infrastructure within the project area includes roads, utilities, oil wells and activities associated with agriculture (including livestock and hay production). There are several maintained roads and three power lines that pass through the project area.

Peninsula Energy chairman talks to Proactive Investors in Stocktube Video

Tue, 07 Feb 2012 03:22:00 +0000

Peninsula Energy's (ASX:PEN) executive chairman Gus Simpson tells Proactive Investors what is in store for the company in 2012.

He also provides an insight into the uranium market, post Fukushima.

The company could be in production late 2012, early 2013.

Peninsula Energy's resource upgrade drilling returns exceptional results at Lance

Thu, 02 Feb 2012 03:17:00 +0000

Peninsula Energy (ASX: PEN) has reported some exceptional uranium intersections from drilling from 20 December 2011 to 31 January 2012 at the Lance Projects in Wyoming.

Peninsular 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.

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

The drilling strategy adopted by Peninsular is to convert inferred resource to indicated resource as well as undertaking regional exploration that aims to locate the mineralised portions of over 312 linear kilometres of mapped redox boundaries.

The majority of this drilling has been focussed on converting inferred mineralisation to an indicated category in the proposed Kendrick production unit located to the west of the Ross production unit.

It has successfully intersected thick intervals of high grade uranium mineralisation due to targeting the nose of the roll front systems.

Of the 108 holes completed, 61 holes encountered uranium mineralisation (> 100ppm) and 19 holes reported GT values exceeding 0.2.

The best results included an intercept of 15.5 feet at 1,530ppm eU3O8, or 0.153%, including 4 feet at 5,160ppm eU3O8, or 0.516%.

Interestingly enough, this roll front system has yet been fully tested so there could be further high grades to come in this system.

Other drilling highlights included:

- 31 feet at 485ppm eU3O8, including 5.5 feet at 1,620 ppm eU3O8
- 4 feet at 1,965ppm eU3O8 including 2.5 feet at 2,990 ppm eU3O8
- 7.5 feet at 730ppm eU3O8 (GT 0.55) including 3 feet at 1,140 ppm eU3O8

The results show strong widths and grades.

Two drill rigs are continuing to develop the resources along strike and infill the high grade “nose” position of the roll fronts.

This success is expected to lift the overall grade of the resources in this area in an upcoming resource recalculation planned for late March.

Clearly, the regional exploration undertaken by Peninsular is proving very successful in identifying mineralisation in these roll front systems.

Hence drilling will continue to explore areas that have the potential to increase the existing uranium resource inventory.

Comment

The latest results indicate thick intervals and exceptional grades of uranium mineralisation. After a pause in part due to Fukushima and global market conditions, Peninsula is now back on track and full steam ahead as it moves closer to development of the projects which should be reflected in share price appreciation.

Peninsula Energy meets another milestone for Lance uranium projects with early issue of RAIs

Tue, 31 Jan 2012 00:49:00 +0000

Peninsula Energy (ASX: PEN) is encouraged by the US Nuclear Regulatory Commission’s (NRC) early issue of Requests for Additional Information (RAIs) to support its environmental and technical review of wholly owned subsidiary Strata Energy’s application for a Source and 11(e).2 Byproduct Material License.

Peninsula executive chairman Gus Simpson said, “We believe that the low number of RAIs and their early issuance are a further demonstration of the NRC’s proactive approach to the permitting process and to the quality of the application documents prepared by the Strata team.

“All in all it’s a credit to the parties involved”.

The RAIs were issued ahead of NRC’s schedule and were significantly less in number than have typically been expected.

This is believed to be due to the comprehensive nature of the original application submitted by Strata.

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.

The Strata permitting team has anticipated the content of most RAIs and have already begun the work necessary to lodge detailed responses within a shortened time frame.

Earlier this month Strata was given the green light by the NRC to begin deep disposal well testing of subsurface conditions at the Lance uranium projects in Wyoming ahead of its original schedule.

The NRC advised the company it considered the testing to be exploration, and drilling could begin without further approval.

Importantly, testing could see flow rates at the upper limits of expectation that would lead to significant capital expenditure reductions at the Lance Projects.

Construction and operation of up to five underground injection control Class 1 wells at the Lance Central Processing Plant site was approved by the Wyoming Department of Environmental Quality in April 2011.

The NRC has confirmed that Strata can, upon the issue of the Source Material Licence, apply to have the test deep disposal well converted for operations.

Peninsula Energy director Malcolm James snaps up one million shares on market

Tue, 24 Jan 2012 04:47:00 +0000

Peninsula Energy (ASX: PEN) executive director Malcolm James has purchased one million shares on market for a consideration of a little over $52,000, providing an average entry price of $0.052.

James has a large direct and indirect investment in Peninsula, including 3.6 million shares through a super fund, 8.25 million shares in a second holding plus a spouse interest of 6.2 million - plus over 6.5 million options with an exercise price of $0.03 in June 2012.

Peninsula currently is experiencing exploration success, and earlier in the month continued its high grade run at the Karoo Project in South Africa, with further drilling demonstrating the widespread distribution of near surface high grade uranium in broad paleochannels.

High grade results returned from Site 29 include 10.7 feet (3.3 metres) at 1,755 parts per million equivalent uranium from 29.2 feet (8.9 metres), 3.6 feet (1.1 metres) at 2,560 parts per million from 31.2 feet (9.5 metres) and 20.5 feet (6.2 metres) at 300 parts per million from 23.8ft (7.3 metres).

The depth of mineralisation is shallow, averaging 13.1 metres within a range of 7.2-20.2 metres, which is very encouraging from a potential development perspective.

Importantly, exploration activity to date has been concentrated on a very limited part of Site 29.

Peninsula Energy also began initial exploration at the highly prospective Site 45 with the re-logging of 15 open historic drillholes, 13 of which recorded intersections greater than 200 parts per million.

Highlight intersections include 9.2 feet (2.8 metres) at 1,095 parts per million equivalent uranium from 45.4 feet (13.8 metres) and 7.7 feet (2.3 metres) at 592 parts per million from 47.4 feet (14.4 metres).

Peninsula Energy chairman buys 2.4m shares on market

Wed, 18 Jan 2012 01:07:00 +0000

Peninsula Energy (ASX: PEN) executive chairman John Simpson has acquired a further 2.4 million shares in the company for a consideration of A$103,849.75, providing an average entry price of $0.04.

Earlier this week Peninsula announced its wholly owned subsidiary Strata Energy will begin deep disposal well testing of subsurface conditions at the Lance uranium projects in Wyoming ahead of its original schedule.

Importantly, testing could see flow rates at the upper limits of expectation that would lead to significant capital expenditure reductions at the Lance Projects.

Peninsula previously intercepted high grade uranium in a drilling program targeted at upgrading the resource at the Lance Project.

Of the 148 holes drilled in this program, 18 encountered significant mineralisation, with 16 recording multiple stacked intersections of uranium.

Peninsula Energy to begin deep disposal well testing at Lance uranium projects ahead of schedule

Mon, 16 Jan 2012 02:24:00 +0000

Peninsula Energy’s (ASX: PEN) wholly owned subsidiary Strata Energy can now move forward with deep disposal well testing of subsurface conditions at the Lance uranium projects in Wyoming ahead of its original schedule.

The United States Nuclear Regulatory Commission (NRC) advised the company it considers the testing to be exploration and drilling can begin without further approval.

Importantly, testing could see flow rates at the upper limits of expectation that would lead to significant capital expenditure reductions at the Lance Projects.

Executive chairman Gus Simpson said, “Proactive decision making like this demonstrates the NRC’s objective approach to the assessment of proposed ISR developments and its understanding of the value to companies of obtaining project development information early.”

The deep disposal wells will be used to inject non-hazardous wastes at depths in excess of 8,000 feet below the surface in order to meet the water management requirements of the proposed operations at the projects.

Construction and operation of up to five underground injection control Class 1 wells at the Lance Central Processing Plant site was approved by the Wyoming Department of Environmental Quality in April 2011.

At the time the permit was issued, the Nuclear Regulatory Commission regulations classified the drilling of any deep disposal well as part of the operation of an ISR project and subsequently a NRC Source Material Licence or an Exception was required to develop and test a deep disposal well.

Late in 2011 amendments to the NRC regulations relating to construction, including necessary borings to determine foundation conditions or other preconstruction monitoring to establish background information related to the suitability of the site, the environmental impacts of construction or operation, or the protection of environmental value, were excluded from the definition of construction and therefore do not require an Exception from the NRC.

The NRC has confirmed that Strata can, upon the issue of the Source Material Licence, apply to have the test deep disposal well converted for operations.

Earlier this month, Peninsula intercepted high grade uranium in a drilling program targeted at upgrading the resource at the Lance Project.

Of the 148 holes drilled in this program, 18 encountered significant mineralisation, with 16 recording multiple stacked intersections of uranium. The majority of holes were drilled in the western parts of the Ross project area.

The recent drilling produced thick, higher grade intercepts, including 6.4 metres at 830 parts per million uranium from 217 metres, including 3.5 metres at 1,150 parts per million.

Peninsula Energy unmasks further shallow high grade uranium at Karoo in South Africa

Mon, 09 Jan 2012 03:03:00 +0000

Peninsula Energy (ASX: PEN) is continuing its high grade run at the Karoo Project in South Africa, with further drilling continuing to demonstrate the widespread distribution of near surface high grade uranium in broad paleochannels.

High grade results returned from Site 29 include 10.7 feet (3.3 metres) at 1,755 parts per million equivalent uranium from 29.2 feet (8.9 metres), 3.6 feet (1.1 metres) at 2,560 parts per million from 31.2 feet (9.5 metres) and 20.5 feet (6.2 metres) at 300 parts per million from 23.8ft (7.3 metres).

The depth of mineralisation is shallow, averaging 13.1 metres within a range of 7.2-20.2 metres, which is very encouraging from a potential development perspective.

Importantly, exploration activity to date has been concentrated on a very limited part of Site 29.

Peninsula Energy also began initial exploration at the highly prospective Site 45 with the re-logging of 15 open historic drillholes, 13 of which recorded intersections greater than 200 parts per million.

Highlight intersections include 9.2 feet (2.8 metres) at 1,095 parts per million equivalent uranium from 45.4 feet (13.8 metres) and 7.7 feet (2.3 metres) at 592 parts per million from 47.4 feet (14.4 metres).

Site 29

Since the start of exploration at Site 29 in January last year Peninsula has completed 210 reverse circulation drillholes for 5,381 metres. Drilling has returned a total of 95 intersections in excess of 200 parts per million equivalent uranium.

A further 167 historic holes have also been probed returning 82 intersections in excess of 200 parts per million equivalent uranium.

Since July a total of 113 reverse circulation and diamond exploration and historic-hole-confirmation drillholes have been completed returning a total of 47 intersections in excess of 200 parts per million equivalent uranium.

These drill results continue to confirm strong high grade mineralisation in paleochannels averaging a thickness of 3.05 feet (0.9 metres). The thickness is consistent with the historic results for the project site and is typical of the thickness of mineralised zones at Karoo.

During the 1970’s Union Carbide calculated the presence of about 600,000 pounds of equivalent uranium in a small part of Site 29 which in total covers 128 square kilometres.

Union Carbide reported an average grade exceeding 1,000 parts per million equivalent uranium and the mineralisation being hosted by the Poortjie formation. This sedimentary sandstone formation is the main target for uranium mineralisation at Karoo.

Peninsula is planning further exploration drilling for during 2012 for Site 29 to determine the subsurface extent of the host sandstone unit and to target further mineralisation.

This will be done by drilling 200 metre spaced stratigraphic holes in both east-west and north-south fences across the property.

Peninsula Energy chairman Gus Simpson said the next round of drilling would be done across and along the project to look for continuations or repetitions of the ore zone at Karoo.

Site 45

Site 45 is located 120 kilometres northwest of Beaufort West and comprises a contiguous area of 489 square kilometres.

During the late-1970’s JCI completed a total of 431 exploration holes in a central portion of the project area. Based on this data JCI calculated the presence of about 4.8 million pounds equivalent uranium in the Davidskolk formation.

Post JCI drilling, rock chip sampling by the South African Geological Survey returned maximum values of 4,210 parts per million equivalent uranium and 1,372 parts per million molybdenum within the project area, indicating an associated high grade molybdenum occurrence.

Peninsula is planning a reverse circulation drilling program at Site 45 following the final approval of drill permits.

Following drilling, Peninsula anticipates the definition of an initial JORC Resource for Karoo Project Sites 22, 29 and 45.

"We are hoping to do that in the first half of this year," Simpson told Proactive Investors today.

Karoo Potential

A defining factor of the potential of Karoo is evidenced in previous assays returned from Site 22 of 1.5 metres at 4,022 parts per million equivalent uranium and 1,313 parts per million molybdenum from 62 metres, as well as 0.5 metres at 6,170 parts per million equivalent uranium and 6,160 parts per million molybdenum from 70 metres.

In addition to existing resource drilling, 10 high ranking drill targets distributed across all six of Peninsula’s project areas have been prioritised from the 392 uranium occurrences generated by the 2008 helicopter-borne radiometric and magnetic surveys.

Simpson said Karoo is similar in mineralisation to other nearby deposits including ground held by Uramin.

"The ground that was held by Uramin has the same sorts of deposits as Karoo, they're not very thick but they are big and tabular. They tend to repeat themselves multiple times across a property," he said.

Preliminary geological studies estimate a combined exploration potential at Karoo of 30-60 million tonnes at 700-1,400 parts per million equivalent uranium for 90-150 million pounds.

Peninsula’s target over the next 12 months is to delineate 30 million pounds of equivalent uranium.

Peninsula Energy drilling returns high grade uranium intercepts

Thu, 05 Jan 2012 23:15:00 +0000

Peninsula Energy (ASX: PEN) has intercepted high grade uranium in a drilling program targeted at upgrading the resource at the Lance Project in Wyoming, United States.

The company is pursuing a strategy of converting Inferred Resources to Indicated Resources alongside regional exploration to identify further mineralisation in the area.

Of the 148 holes drilled in this program, 18 have encountered significant mineralisation, with 16 recording multiple stacked intersections of uranium. The majority of holes were drilled in the western parts of the Ross project area.

The recent drilling has produced thick, higher grade intercepts, including:

- 6.4 metres at 830 parts per million (ppm) uranium from 217 metres, including 3.5 metres at 1,150ppm uranium;
- 8 metres at 390ppm uranium from 218 metres, including 1.98 metres at 540ppm uranium; and
- 6.2 metres at 371ppm uranium from 217 metres, including 0.7 metres at 1,750ppm uranium.

The high grade intersections are located within sandstones occurring in the Lower Lance Formation, above the mineralised horizons which contain the majority of the existing resources.

This highlights the potential for further mineralised horizons within the Lower Lance formation.

Drilling at the Met Hill and Turtle Hill areas also returned high grade results, with a peak intersection of 3.5 metres at 1,150ppm uranium equivalent, within a broader intersection of 6.4 metres at 830ppm uranium equivalent.

Peninsula Energy executive director tops up shareholding

Wed, 04 Jan 2012 23:43:00 +0000

Peninsula Energy (ASX: PEN) executive director – finance and operations Malcolm James has increased his stake in the company, taking up 1 million shares.

James purchased the shares on market at a price of about $0.038 per share, for a total consideration of $38,041.80.

This brings James’ total shareholding to about 17 million shares, along with a number of listed options exercisable at $0.03 on or before June 30, 2012.

Peninsula Energy recently completed a Definitive Feasibility Study for its Ross uranium project, along with the Expanded Economic Study for the Lance uranium project, both located in Wyoming, U.S.

The results from these studies are expected to allow Peninsula to gain project funding and become a uranium producer in 2013.

Peninsula Energy technical director tops up shareholding

Tue, 03 Jan 2012 23:43:00 +0000

Peninsula Energy (ASX: PEN) technical director Alfred Gillman has increased his stake in the company to 6.3 million shares.

Gillman purchased a further 300,000 shares on market for a consideration of A$11,163.80, providing an average entry price of $0.04 per share.

Peninsula Energy is in an interesting position as it moves closer to becoming a uranium producer.

The company recently completed feasibility and economic studies of its Ross and Lance uranium projects in Wyoming and the results should enable Peninsula to gain project funding and become a uranium producer in 2013.

While some investors may be gun shy of uranium, a number of analysts are predicting that uranium prices could climb in 2012-13 due to delays in new supplies coming online and Russia's plans to stop exporting enriched uranium this year from its secondary supplies.

The Ross Definitive Feasibility Study and the Lance Expanded Economic Study have confirmed the technical and economic viability of the Lance in situ recovery uranium projects in the Powder River Basin Wyoming, USA.

Peninsula Energy on the road to uranium production with feasibility study results

Tue, 03 Jan 2012 01:29:00 +0000

Peninsula Energy (ASX:PEN) has completed feasibility and economic studies of its Ross and Lance uranium projects in Wyoming and the results should enable Peninsular to gain project funding and become a uranium producer in 2013.

While some investors may be gun shy of uranium, a number of analysts are predicting that uranium prices could climb in 2012/13 due to delays in new supplies coming online and Russia's plans to stop exporting enriched uranium next year from its secondary supplies.

In addition, uranium industry company UxC compiled a report on the uranium market for the period 2013-2030. In part it said:

“Following the Fukushima accident, there still remains a deficit of supply from the perspective that current production levels are insufficient to meet required future demand given the expected continued growth of nuclear power and the decline in inventory supplies such as HEU that have recently been supplying the market.

"Given the need for increased production, the midpoint of our composite spot price forecast in-creases from $60 in 2013 to $83 in 2025."

Study Results

The Ross Definitive Feasibility Study (DFS) and the Lance Expanded Economic Study (EES) have confirmed the technical and economic viability of the Lance in-situ recovery (ISR) uranium projects in the Powder River Basin Wyoming, USA.

- Ross Definitive Feasibility Study (DFS) NPV US$46 million
- Lance Expanded Economic Study (EES) NPV US$207 million with an initial capital requirement of US$79 million including the capital cost of the Central Processing Plant (CPP)

The Lance projects (EES) included three production units planned at Ross, Kendrick and Barber deposits.

The DFS has been completed by Lyntek Inc. (Denver based engineers) on the June 2011 measured and indicated resources of 8.8 million pounds of uranium at the Ross production unit only and has established the operating costs, well-field parameters and development costs which in the EES are applied to all three production units.

Rockbury Capital FZ LLC and the Company have then applied these parameters to the EES which includes a total 23.3 million pounds of U3O8. This number assumes the conversion of a 12.1 million pounds of the 30.1 million pounds of inferred U3O8 resources that are currently delineated at the Lance projects to indicated category or better.

The EES anticipates the expanded project including Ross, Kendrick and Barber production units feeding a Central Processing Plant (CPP) with an expandable capacity of up to 3.0 million pounds per annum. The CPP evaluation was included in the Lyntek Scope of Work and as such is to a DFS level of accuracy.

In the EES the first production unit will be at Ross with a capacity of 750,000 pounds per annum and production ramping up over 3 years to 2.19 million pounds per annum steady-state production with the inclusion of the Kendrick and Barber production units.

Costs

All important steady state total production cost was estimated at US$31.55 per pound U3O8 including indirect taxes, royalties and ongoing well-field development (C1 cash costs of US$11.93 per pound).

Mining

In situ mining (ISR) is a form of solution mining where uranium is removed from sandstone formations by the same chemical process that deposited it there in the first place. Currently the in-situ process is the single largest producer of U3O8 globally accounting for approximately 41% of all primary production.

ISR mining and processing of uranium consists of two steps: recovering uranium from the mineralised sandstone host via the cycling of recovery solutions through it and the processing of this uranium-rich solution into yellowcake.

Infrastructure

The Lance projects are located in north-eastern Wyoming, about 32 kilometres north of Moorcroft and adjacent to the ranching community of Oshoto. Moorcroft lies adjacent to the I-90 Interstate highway. From the Interstate turn off there is approximately eight kilometres of paved road followed by approximately 48 kilometres of graded roads.

Within the project areas, existing land uses include: livestock grazing, oil production, fodder crop production, communication, power lines and a road transportation network.

Infrastructure within the project area includes roads, utilities, oil wells and activities associated with agriculture (including livestock and hay production). There are several maintained roads and three power lines that pass through the project area.

Revenues

Sales of U3O8 are predominantly contracted on a long term basis with prices determined by a pre-set formulae linked to the reported term and/or spot prices. In the DFS, Lyntek has used a price forecast of US$63.31-79.50 per pound for the 2013-2022 period of operations.

For EES modelling purposes the Company has adopted a price forecast based on a UX Consulting Inc. (UxC) independent report on the long term uranium market for the period 2013-2030. The EES assumes U3O8 production is sold at a contract price of US$62.58 per pound, 2011 base escalated at an average 2.6% per annum.

Permitting

Following a recent review of the permitting strategy the company "is confident in finalising permitting." In addition all new project areas are being designed so they are contiguous with the Ross permit area and as such will be deemed to be amendments to the Ross Permit (once issued) rather than standalone applications. This strategy will significantly reduce the permitting process and timing going forward.

Project funding

The Company is well advanced in structuring and implementing the funding plan for the development of the operation.

It is anticipated that funding will be sourced from a combination of debt and equity.

Rockbury Capital FZ LLC and Boswell Capital Corporation have signed Non Disclosure Agreements with several international banking and uranium industry groups. These groups are currently reviewing the Company’s electronic data room with a view to proposing a financing arrangement, or part thereof. In several cases this will be combined with U3O8 sale and purchase arrangements.

Moving ahead

The Lance ISR uranium projects are ready to be progressed to development stage following relevant permitting and project funding factors which are all well advanced.

Total construction time is estimated at six months and first commercial U3O8 production remains on track for late 2012 (subject to permitting), ramping up over 2013.

This timeline to first commercial U3O8 production is subject to final Board approval which is expected before March 2012.

The company is now working towards detailed design and engineering and to awarding an EPCM contract for the projects ahead and the commencement of site preparation works. In addition, the Company is assembling a highly experienced team to successfully transition from explorer to producer and have the financial capacity to fast track the project implementation where possible.

Analysis

The outcomes of the feasibility study and economic studies of Peninsula's Wyoming uranium projects indicate viable uranium projects with a sufficient margin and buffer over costs of production. Capital costs are also reasonable given the significant scale and production levels envisaged in the studies. This should combine to ensure that project funding is available given the high quality of the projects.

Given the production timeline of the projects should coincide nicely with lower market supplies of uranium in 2013 and beyond.

Long term contract prices offer a higher revenue potential for Peninsula. While it has been a tough road for uranium companies post Fukushima, there are very few listed companies with advanced stage uranium projects that can propel a company from explorer to producer within 12-18 months.

Peninsula Energy provides a compelling uranium counter for longer term investors, with $23 million in cash, trading a significant discount to intrinsic value and longer term valuation with a number of catalysts for re-rating ahead.

Peninsula Energy pulls placement to Nucore Energy

Wed, 26 Oct 2011 04:26:00 +0100

Peninsula Energy (ASX: PEN) has terminated its agreement to raise $15 million through a private placement to Nucore Energy due to current market conditions.

The placement was originally announced to the ASX on 23 June 2011, but Peninsula and Nucore have mutually agreed to the cancellation as it is unlikely that the pricing structure can be achieved in the near term.

The placement was priced at a 50% premium to the 10 day volume weighted average price in the period immediately following publication of the Peninsula’s Definitive Feasibility Study at the Lance Projects in Wyoming, U.S.

Peninsula said the completion of the placement at the current price levels has not been considered as it would result in excessive dilution to existing shareholders.

NuCore is a North American company focused on the commercial nuclear fuels market and services sector.

Peninsula Energy ticks another box towards mining at Lance with air quality permit

Wed, 28 Sep 2011 07:28:00 +0100

Peninsula Energy (ASX: PEN) is continuing the progression towards a mining operation at the Lance uranium projects in Wyoming, U.S.

Peninsula has now received an Air Quality Permit which follows a detailed technical review by the Division of Air Quality of the Wyoming Department of Environmental Quality (WDEQ/AQD) of more than a year of baseline air quality monitoring, modelling and data analysis by Strata.

Gus Simpson, executive chairman, commented “The grant of the Air Quality Permit is another important step toward achieving full approval for a mining operation at Lance."

The project plans to use the insitu recovery method to extract uranium and produce up to a maximum of three million pounds per year of yellowcake (U3O8).

Following the WDEQ/AQD’s proposed approval of the request as published August 11, 2011 and in accordance with regulations, the public was afforded a 30 day period in which to submit comments concerning the application, and an opportunity for a public hearing.

No comments were received.

On expiration of the public comment period and on the basis of the information provided to the WDEQ/AQD, approval to construct the Ross ISR Project as described in the application has now been granted pursuant to Chapter 6, Section 2 of the regulations.

The Lance projects host a resource of 41.4 million pounds of uranium.

Peninsula said that work on the Definitive Feasibility Study, Expanded Economic Study, Owner’s Review and Optimization studies are progressing well.

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

Mon, 12 Sep 2011 06:24:00 +0100

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.

Peninsula Energy steps closer to grant of Ross Uranium Project Air Quality Permit

Wed, 27 Jul 2011 02:30:00 +0100

Peninsula Energy's (ASX: PEN) Ross ISR Project Air Quality Permit application has been deemed complete by the Air Quality Division of the Wyoming Department of Environmental Quality (WDEQ/AQD), representing another important step towards the grant of the permit in September 2011.

The application was submitted by Peninsula's wholly owned subsidiary Strata Energy Inc. and the WDEQ/AQD will now commence a technical review which it expects to complete within sixty days.

Peninsula is targeting commencement of uranium recovery at the Ross Project in Wyoming, USA, in 2012. The company aims to join other successful uranium producers in Wyoming whose efforts are spearheading domestic energy development in the U.S. using the most environmentally benign uranium recovery process available.

Gus Simpson, Peninsula’s executive chairman, said “the confirmation from the WDEQ of the completeness of the Air Quality Permit application is the culmination of more than a year of baseline air quality monitoring, modeling and data analysis and augurs well for the timely grant of this important permit.”

Subject to meeting all regulatory requirements, approval of the Air Quality Permit is anticipated in September 2011.

The Ross Project forms the core of the greater Lance Project, with primary mineral processing activities centered in this initial production area. Peninsula aims to become one of the largest producers of uranium in the U.S.