Peninsula Energy (ASX:PEN) has entered into a binding agreement to acquire the previously producing Hauber Uranium Project in Wyoming from Aldershot Resources (TSX:ALZ).
The company is focused on completion of construction and commissioning of the Lance Projects, which remains on budget and on schedule to start production in the second half of 2015.
Hauber produced approximately 2.6 million pounds U3O8 at an average grade of 2,200ppm U3O8 during the 1950’s and 60’s.
Its high historic mining grade and proximity to the Lance Projects’ Central Processing Plant led to its identification as a strategic regional opportunity.
This has the potential to be developed as a future satellite operation that could utilise the additional 700,000 pound per annum U3O8 capacity that has been licensed at the Lance CPP.
Under the agreement, Peninsula has acquired 44 mineral claims covering 1,760 acres just 15 miles to the north-northeast of the Lance Projects.
It is required to make a cash payment of US$20,000 and will be responsible for all future ongoing costs for maintaining the properties in good standing and for all future exploration and development funding.
Over the coming months Peninsula will conduct a detailed analysis of the acquired data and will develop an exploration and delineation drilling program for future execution.
Hauber Project
Hauber is situated in the Black Hills area of Wyoming.
The Black Hills are a broad uplift spanning approximately 150 miles in length in a north north-west to south south-east direction and 50 miles wide.
The dome was uplifted during the Laramide Orogeny and consists of a Precambrian granitic and metamorphic core surrounded by outwardly dipping Palaeozoic and Mesozoic strata.
Uranium is hosted in the Lower Cretaceous Inyan Kara Group.
Previous project holders have undertaken extensive drilling within the Hauber properties and the surrounding regional area.
Data for approximately 5,000 drill holes from Hauber and the surrounding region, along with maps, gamma logs and chemical assay information has been received by Peninsula as part of the acquisition.
In 2011, testing by Bayswater Uranium Corporation indicated the mineralised host sandstones have ranging from 600 to over 2400 millidarcies, within the accepted range for in-situ recovery mining.
Analysis
Peninsula Energy has further strengthened its position as the largest uranium mineral rights holder in the northeast Powder River Basin of Wyoming, U.S., with the acquisition of the Hauber Uranium Project.
The acquisition cost is negligible at just US$20,000, but has the potential to be developed as a future satellite operation that could utilise the additional 700,000 pound per annum U3O8 capacity that has been licensed at the Lance CPP.
During the 1950’s and 60’s Hauber was a uranium producing project, and produced 2.6 million pounds U3O8 at an average grade of 2,200ppm U3O8.
Share price catalysts
A key catalyst for Peninsula would be the acquisition of another satellite deposit, which could potentially add mine feed stock for a longer, or higher output, at Lance
There are several more ore bodies that are currently being reviewed though the company is certainly in no hurry given that they are all stranded and not large enough to justify a standalone development.
Peninsula also remains on track to be the next ASX-listed uranium producer with its Lance Projects still on schedule and on budget for uranium production in the second half of 2015.
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