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.