Peninsula Energy (ASX:PEN) has discovered high grade uranium from development drilling at the Lance Uranium Projects in Wyoming, U.S.
Peninsula will be the next ASX-listed uranium producer, and will also move to list on the New York Stock Exchange.
Drilling intersected the high grade uranium within and outside Mine Unit 1.
Adding interest, intercepts within Mine Unit 1 meet or exceed resource grade expectations, which augurs well for production from this mining zone.
Highlights include:
- 8.5ft at 1,690ppm U3O8 from 364.5ft (GT 1.44);
- 19.5ft at 650ppm U3O8 from 459ft (GT 1.27);
- 11.5ft at 660ppm U3O8 from 433ft (GT 0.76); and
- 14ft at 540ppm U3O8 from 454ft (GT 0.76).
Gus Simpson, managing director and CEO, commented: “As development progresses at Lance MU1 we are seeing consistent support for the estimates generated in the Feasibility work.
"This combined with better than expected drilling results augurs well for future production."
Drilling details
Peninsula’s wholly owned subsidiary Strata Energy Inc. has completed the installation of a series of monitor/baseline wells within the initial mining unit (Mine Unit 1) at the Lance Projects.
Strata is using these wells to develop site-specific ground water quality data and to perform aquifer pump tests.
Delineation drilling has also been conducted to optimise the well field patterns and design within Mine Unit 1.
Peninsula advises that both the monitor well drilling and delineation drilling have intersected high grade uranium mineralisation within the ore zone of Mine Unit 1, with several high grade holes also being recorded outside of Mine Unit 1.
During the period February 2015 to present, Strata completed 56 monitoring/baseline wells, 19 delineation holes and 7 mining wells at the Lance Projects.
The vast majority of these holes were drilled within and around Mine Unit 1
Peninsula said that as expected, a number of the holes were barren, consistent with the company’s understanding of the Mine Unit 1 ore resource boundaries.
Analysis
As development progresses at Lance MU1, Peninsula is seeing consistent support for the parameters in the Feasibility work.
This combined with better than expected drilling results augurs well for future production.
Peninsula will be the next ASX-listed uranium producer, and will also move to list on the New York Stock Exchange.
The New York listing could dramatically improve the company's liquidity and valuation, and is expected to be completed in October this year.
The listing will provide access to an active market well versed in the benefits of nuclear power generation.
Peninsula had cash of approximately A$38 million as at the end of May with debt of just $1 million.
On today's drill results, who said a pre-production company cannot keep pulling rabbits out of a hat?
And they are big rabbits considering these high grade hits during development drilling include some that are better than expected.
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