PENINSULA ENERGY LIMITED - ASX: PEN

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Description

Peninsula Energy Limited (PEN) is an ASX listed mineral exploration company with Uranium projects located in Wyoming USA, South Africa and Western Australia.

Lance Project, Wyoming USA

Where: Crook County, NE Wyoming; 32 Miles NE of Gillette

Historic Work: In 1970's NuBeth JV formed - Between Bethlehem Steel and Nuclear Dynamics

Uranium mineralisation was identified within an area measuring 35 mile (56km) N-S by 6 mile (10km) EW.

The Lance Project is located on the North-East side of the Powder River Basin in Wyoming. The historic drilling data acquired by Peninsula has defined a new uranium district previously unknown due to this drilling data and other project related data being held by one related entity since its discovery in 1970. The historic drilling defined 13 prospects in total; Peninsula now holds title over 7 of these 13 mineralised areas. Peninsula is in the process of actively acquiring mineral title over the remaining prospect areas.

Peninsula's land includes the site of the historic In-situ recovery pilot plant operated by the NuBeth JV where four mineralised vertically stacked roll fronts have been identified by the historic drilling. The ISR Pilot Plant was designed to produce 40,000 lb of U3O8 per year and ran successfully for ten months. The ISR Pilot Plant was closed due to the Three Mile Island Incident in March 1979 and the site was fully rehabilitated with all bonds returned in 1984. The historic assay results, metallurgical tests, environmental baseline studies, and proven aquifer restoration should prove invaluable to Peninsula in reducing the time required for state and federal permitting for a planned new ISR mining operation.

Historic Drilling: 5,036 holes for 2. 99 million ft or 911,822m over 10 x 35 mile area. Grades were mostly between 0.02% and 0.8% eU3O8 averaging approximately 0.06% eU3O8.

PEN Landholdings: PEN land holdings total 120km2 land within the 22 miles of drill defined Uranium mineralisation. The majority of PEN holding is around the historic Oshoto Resource. Land title consists of Federal, state and private mineral rights.

The quality of the mineralisation within the Lance project area is highlighted by the identification of 22 mineralised sands with more than 204 km (127 miles) of roll fronts. Each prospect area contains from one to eight vertically stacked mineralised roll fronts giving multiples of resource potential over the 37 km strike length of the Lance Project area.

Karoo Region, South Africa

Where: Karoo Region of South Africa, approximately 250mi (400km) to 300mi (600km) ENEN of Cape Town.

Six project areas granted over Permian sandstones of the Karoo Basin; PEN 74%, Mmakau mining (BEE Partner) 26%. Projects names Sites 5 ,22 ,29 ,45 ,49 and 37.

The Karoo Basin is a known uranium and Molybdenum mineralised province and is host to several historically defined ore bodies (Ryst Kuil containing approximately 40 Mill lb U3O8 and Riet Kuil reported to contain approximately 10 mill lb U3O8).

Minimal U exploration in South Africa since late 1980's.

Target areas pegged as a result of published SA Government reports on the results of a 1980's radiometric survey and a 1990's sampling and mapping project for Mo and uranium.

All sites contain outcropping to sub-cropping uranium and Mo anomalism.

Historic Work: Sites 22, 29 and 45 contain historic resources defined by JCI (sites 22 and 45) and Union Carbide (site 45).

Historic Drilling: At Site 22, 254 holes have been located where uranium and Mo mineralisation was identified over a 6.2 mi (10km) strike length at depths of 60ft (20m) to 450ft (150m). The mineralisation was determined to be approximately 1m thick with mineralised holes grading between approximately 0.2 and 0.3% eU3O8 and gently dipping.

Historic Drilling at Site 45 was very broad spaced over a 6.2mi (10km) strike length and mineralised holes averaged around 0.1 to 0.2% eU3O8 at depths ranging between 0 and 600ft (200m).

Historic Drilling at Site 29 was conducted over a small area with mineralised intervals averaging 1m wide at 0.1% eU3O8

Most sites would be most likely by amenable to mining by combination of open pit and underground mining.

Uranium Mineralisation: Hosted by sandstones of the Permian Karoo Basin. U mineralisation mostly located in tabular or ribbon style bodies, where U mineralisation is concentrated where porous and oxidized sandstones come in contact with reduced shale units or concentrations of organic material.

Mo Mineralisation: Appears to halo U mineralisation and is part of same oxidation/reduction process. Not factored into previous resource estimations or economic models. Potential to add approximately 50% to the value of the in situ uranium. This significantly impacts on the economics of mining these types of mineralisation.

A detailed Radiometric Survey covered a total area of 1,985km, with a flight line spacing of 100 metres and a nominal 25m flight height was completed in February 2008. This compares with the original South African Government Geological Survey (now Council for Geoscience) completed over the region in 1976, which was flown on 1km spaced lines at a greater flight height. The closer line spacing, lower sensor height and improved instrument sensitivity have resulted in the identification of a large number of areas with elevated uranium response.

Review of the Radiometric Survey data has been completed and new areas of uranium anomalism were identified at all six Prospecting Rights. It is expected that several high priority drill targets will be defined following the ground follow-up work.

Ground checking of the anomalies will now be prioritised by the Company so that the anomalies can be put into geological and topographic context. As radiometric surveys can only test the very shallow surface environment (a few cm) a uranium mineralised body covered with a thin layer of sand or soil will give a minimal response in the uranium channel. Thin overburden can also dilute a uranium response and make it very weak highlighting the importance of placing anomalies in context.

Western Australian Uranium Projects

Peninsula's Western Australian exploration licence applications are progressing to grant, with five exploration licence applications recently granted. Peninsula owns eight tenements that were selected using satellite imagery, airborne geophysical data and geology targeting areas along strike of known calcrete uranium deposits where shallow soil cover is capable of masking surface radiometric anomalies. The Nelson Well project covers an additional 16km of prospective untested calcrete channel to the south and east of the Cogla Downs deposit where previous drilling returned up to 0.44m @ 0.03 % eU3O8. Similar targets exist on the other five Western Australia tenements where previous surface sampling has returned results up to 0.08% U3O8.

Raki Raki Gold Project, Fiji

The Raki Raki project comprises three main gold prospects (Qalau, 4300E and Tataiya Ridge) and numerous other gold anomalies in a geological setting similar to Emperor's Vatukoula deposit, 35 km to the south-west. All three of the main prospects are scheduled for drill testing following detailed IP surveys which will define drill targets.

The Qalau Prospect is a 900m x 500m zone of anomalous gold in soil values, with trench samples up to 6m at 4.28 g/t Au. Limited drill testing has yielded a best intersection of 6m at 2.5 g/t Au. Geopacific plans to carry out detailed IP surveys to highlight near surface drill targets.

The 4300E Prospect is a 200m x 450m gold in soil anomaly with pyritic quartz veins up to 7m wide encountered in trenching. Best intercept from limited drilling are 4m at 2.6 g/t Au from surface, and 26m at 1.3 g/t from 46m depth. Structural controls are not currently understood and Geopacific will use detailed IP surveys to locate targets for follow-up drilling.

At the Tataiya Ridge Prospect anomalous gold occurs in a 2000m x 600m zone of quartz stockwork veining and brecciation in basic volcanic rocks. Limited drill testing has not resolved the structure, and Geopacific will use detailed gradient array IP surveys to identify vein structures for drill testing.

Mine For

uranium, gold

Location of operation(s)

South Africa, USA, Fiji, Western Australia

Address

Unit 17, Level 2 Spectrum Bldg 100 Railway Rd
SUBIACO, WA, AUSTRALIA

Phone

(61 8) 9380 9920

Email

Website

http://www.pel.net.au/

Last Updated

6/7/2011