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Peninsula Energy's Resource Upgrade Drilling Returns Exceptional Results At Lance

Peninsula Energy (ASX: PEN) has reported some exceptional uranium intersections from drilling from 20 December 2011 to 31 January 2012 at the Lance Projects in Wyoming.

Peninsular is looking to become a uranium producer in late 2012 to 2013 having completed feasibility and economic studies of its Ross and Lance uranium Projects.

Ross is the most advanced area at the Lance Project, which is an In Situ Recovery (NYSEMKT:ISR) uranium project.

The drilling strategy adopted by Peninsular is to convert inferred resource to indicated resource as well as undertaking regional exploration that aims to locate the mineralised portions of over 312 linear kilometres of mapped redox boundaries.

The majority of this drilling has been focussed on converting inferred mineralisation to an indicated category in the proposed Kendrick production unit located to the west of the Ross production unit.

It has successfully intersected thick intervals of high grade uranium mineralisation due to targeting the nose of the roll front systems.

Of the 108 holes completed, 61 holes encountered uranium mineralisation (> 100ppm) and 19 holes reported GT values exceeding 0.2.

The best results included an intercept of 15.5 feet at 1,530ppm eU3O8, or 0.153%, including 4 feet at 5,160ppm eU3O8, or 0.516%.

Interestingly enough, this roll front system has yet been fully tested so there could be further high grades to come in this system.

Other drilling highlights included:

- 31 feet at 485ppm eU3O8, including 5.5 feet at 1,620 ppm eU3O8
- 4 feet at 1,965ppm eU3O8 including 2.5 feet at 2,990 ppm eU3O8
- 7.5 feet at 730ppm eU3O8 (GT 0.55) including 3 feet at 1,140 ppm eU3O8

The results show strong widths and grades.

Two drill rigs are continuing to develop the resources along strike and infill the high grade "nose" position of the roll fronts.

This success is expected to lift the overall grade of the resources in this area in an upcoming resource recalculation planned for late March.

Clearly, the regional exploration undertaken by Peninsular is proving very successful in identifying mineralisation in these roll front systems.

Hence drilling will continue to explore areas that have the potential to increase the existing uranium resource inventory.

Comment

The latest results indicate thick intervals and exceptional grades of uranium mineralisation. After a pause in part due to Fukushima and global market conditions, Peninsula is now back on track and full steam ahead as it moves closer to development of the projects which should be reflected in share price appreciation.