Peninsula Energy hits more high grade uranium at Karoo Project in South Africa

Peninsula Energy (ASX: PEN) is continuing to receive high grade results from the exploration program at Site 22 in the Karoo Project in South Africa, indicating potential to delineate significant levels of both uranium and molybdenum. 

Highlights include:

- 2 metres at 3,213 parts per million (ppm) eU3O8 from 9.93 metres;
- 1.72 metres at 3,711ppm eU3O8 from 23.5 metres; and
- 2 metres at 2,568ppm eU3O8 from 87.24 metres.

The depth of confirmed mineralisation ranges from 10.2ft (3.1m) to 177ft (75.8m) from surface.

Since the previous release on May 12, Peninsula has drilled 58 reverse circulation (RC) holes and three diamond core holes, mainly in the western portion of the historic drilling area.

Peninsula has now completed the initial field program at Site 22. The drilling program will now to be extended to the north-east to cover the entire historic drilling area as results indicate a more widespread distribution of high grade uranium.

Chemical assay results have confirmed high grade molybdenum in association with this uranium and the latest results are providing compelling evidence that there is the potential to delineate significant levels of both resources at Site 22.

All of the RC intervals have been sampled for both uranium and molybdenum analyses and the next round of assay results for the RC drilling are expected shortly.

Importantly, the implications for the economics of the project are very positive given the strong associated levels of Molybdenum. 

Peninsula said the three diamond core provide the opportunity to conduct metallurgical test-work in the future, as well as providing accurate QAQC data.

In 1982, metallurgical test-work completed by the Atomic Energy Board of South Africa demonstrated that the Uranium and Molybdenum could be successfully recovered via either an acid leach or alkaline leach extraction process.

In addition to the existing resource drilling, ten high ranking drill targets distributed across all six of the company’s Karoo Project Areas have been prioritised from the 392 Uranium occurrences generated by the 2008 helicopter-borne radiometric and magnetic surveys.

This process has included site mapping, ground sampling and aerial extent studies of the project areas conducted by Peninsula over the last 3 years.

The Karoo region is highly prospective and is located around 400 kilometres from Cape Town, with the Karoo Basin known as a uranium and molybdenum mineralised province, and is host to several historically defined ore bodies.

These include Ryst Kuil containing around 40 million pounds of U3O8, and Riet Kuil reported to contain around 10 million pounds of U3O8.

Further targets have been identified following recent acquisition and review of exploration reports compiled by Union Carbide during the 1970s and early 1980s.

Peninsula obtained these reports from the South African Nuclear Energy Corporation during the September 2010 quarter.

Preliminary geological studies have estimated a combined exploration potential in the Karoo of 30-60 million tonnes at 700–1,400ppm eU3O8 for 90 – 150 million pounds (lbs) eU3O8.

Peninsula’s target over the next 18 months is to delineate 30mlbs of eU3O8 (15-25m tonnes at 700–1,400ppm eU3O8).

The source of this material may include the historic mineral occurrences, their extensions and new exploration targets.

Significantly, if this target is achieved, a conceptual study has suggested that this quantity of uranium would support the development of a central processing facility near Site 29.