Peninsula Energy (ASX: PEN) has finalised the acquisition of a 74% interest in 36 prospecting rights (the former ARSA held properties) covering 5,600 square kilometres of the main uranium-molybdenum bearing sandstone channels in the Karoo Basin in South Africa.
These complement the company's assets in the Karoo Basin it held prior to the acquisition that contain an Indicated and Inferred Resource of 50.1 million pounds of U3O8.
The company has satisfied the US$4 million consideration payable at completion through the issue of 206,483,154 shares.
Further consideration of US$45m remains payable upon completion of a Bankable Feasibility Study on the Karoo Projects and the securing of a minimum 50% debt financing for the funding required to develop the projects to production.
"We are pleased that the last of the regulatory and legal conditions have been met," executive chairman John (Gus) Simpson said,
"This fact and the development results over the past 12 months confirm that the Karoo Projects have the potential to become a second mining operation for the Company following the development of our Lance ISR Projects in Wyoming."
The current Karoo resources are located on two well-defined sedimentary channels that each extends for up 100 kilometres along strike.
These channels have been tested both recently and historically with approximately 10,000 exploration drillholes.
The Resource has been estimated in localised areas in which reliable drilling data is available.
In addition, the zones between the JORC resource areas form the Exploration Target of 200 million to 300 million pounds of U3O8 due to the following:
- Continuity of the prospective sandstone established by geological mapping and regional drilling; and
- Historic estimates of mineralisation based on drilling which has not yet been validated by Peninsula.
The Resource of the RystKuil channel alone, which represents the most completely drilled portion of the resources, comprises 17.2 million tonnes at 1,048ppm eU3O8. This resource tonnage is distributed over a cumulative strike length of 23 kilometres.
Over the next three to five years ongoing exploration drilling is proposed to seek to expand the JORC resource within the Exploration Target areas.
This will be focussed on the Eastern Sector RystKuil channel. Testing of the Western Sector Exploration Target areas will commence beyond this time-frame.
Peninsula has also acquired about 320 square kilometres of free hold farms that make-up a large part of the surface land overlaying the known mineralisation.
Since the announcement of the acquisition in December 2012, Peninsula has made significant progress in advancing the Karoo Projects toward production. Milestones in the last 12 months include:
- Publication of a maiden JORC 2012-Code compliant resource of 50 million pounds at 1040 ppm U3O8;
- Completion of a scoping study on the Karoo Projects;
- Selection of the alkaline processing route for planned central processing plant; and
- Commencement in the current quarter of the Pre-Feasibility Study.
The Scoping Study had identified the preferred development path and uranium resource expansion potential as well as supporting the decision to proceed to a Pre-Feasibility Study.
The finalisation of the former ARSA properties completes a process started last year and extends the Peninsula Energy's uranium footprint in the Karoo Basin, where it has already defined a 50.1 million pounds Resource.
These support the Karoo Basin Project being the second major project for the company after the Lance Uranium Projects.
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