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Peninsula Energy Extends Uranium Mineralisation At Karoo In South Africa

Peninsula Energy (ASX: PEN) has achieved its objectives of identifying additional areas of mineralisation outside of the current resource, as well as increasing the confidence of the resource at its Karoo Uranium-Molybdenum Projects in South Africa.

The company has received the first results from an initial drilling program along the Ryst Kuil channel in the Eastern Sector of the Karoo Projects.

The drilling program, conducted at the De Pannen resource area, began in February 2013 and to date Peninsula has completed 67 reverse circulation drill holes within the main mineralised channel for a total of 2,745 metres.

As well as facilitating the conversion of existing Inferred Resources to Indicated status, step out drilling beyond the historically mineralised zones has returned high grade intersections which are expanding the limits of the known mineralisation.

A total of 17 holes intersected mineralisation greater than 200 parts per million and five holes reported multiple intersections of stacked uranium, with two holes reporting grades in excess of 1,000 parts per million eU3O8.

The results from the drilling program so far are consistent with the historic drilling results and confirm the presence of shallow uranium mineralisation, at depths mostly under 30 metres.

Within the channel system, uranium and molybdenum mineralisation is localised within smaller-scale sedimentary features in the order of 1 to 2 metres in thickness and up to several hundred metres in length.

The shallow nature of the mineralisation and resources are potentially amenable to open pit mining which would have highly favourable implications for the economics of the planned operations at Karoo.

Gus Simpson, executive chairman, commented: "We are very pleased with the first results from the drilling program at Ryst Kuil, which has demonstrated good uranium mineralisation at shallow depths.

"Further drilling across Peninsula's landholding will continue with the aim to expand and enhance the existing resource estimates."

In addition to the reverse circulation drilling, Peninsula is continuing with a down-hole gamma logging program at Ryst Kuil to validate the historic results at the project.

As part of the resource delineation process, the company completed a detailed QAQC study comprising the confirmation of drillhole locations and verification of historic down-hole radiometric logging procedures and results.

In total Peninsula has now probed 250 holes, including 77 more recently drilled diamond holes and 71 reverse circulation holes, the remainder being historic holes drilled by Esso.

The results have been successful in validating the historic data.

Karoo Projects

The Karoo Projects host a JORC Resource of 50.1 million pounds eU3O8, which includes an Indicated Resource of 15.7 million pounds at 1,020 parts per million eU3O8 at a lower cut-off of 600 parts per million.

The projects cover a significant proportion of the Karoo Basin Permian sandstones, for which an exploration target of between 250 and 350 million pounds U3O8 has been outlined.

A Scoping Study is underway for the projects and a Bankable Feasibility Study is slated to begin in the second half of 2013.

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