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Peninsula Energy Clears Final External Issue Towards Uranium Mining Permit At Lance

Peninsula Energy (ASX: PEN) has crossed the final external hurdle to secure the Permit to Mine for its Lance Uranium Projects in Wyoming after acquiring the site of its proposed central processing plant.

The move is another step towards the company's goal of become a uranium producer in late 2012 to 2013, having completed feasibility and economic studies of its Ross and Lance uranium Projects.

Peninsula said acquisition of the 0.97 square kilometre (240 acre) ensures the necessary owner's consent to mine required by the Wyoming Department of Environment Quality it now finalised.

This allows the department to issue the Permit to Mine once Peninsula's wholly-owned subsidiary Strata Energy lodges the financial surety.

Peninsula has also taken ownership of the Oshonto reservoir and the rights to access the water resource for the well field and central processing plant operations, 100% of the mineral rights over the property and surface and mineral rights to a further 4 square kilometres (1000 acres) to the north of the Ross Production unit.

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

Peninsula's current drilling strategy is aimed at converting 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.

The Lance projects are located in north-eastern Wyoming, about 32 kilometres north of Moorcroft and adjacent to the ranching community of Oshoto. Moorcroft lies adjacent to the I-90 Interstate highway. From the Interstate turn off there is approximately eight kilometres of paved road followed by approximately 48 kilometres of graded roads.

Within the project areas, existing land uses include: livestock grazing, oil production, fodder crop production, communication, power lines and a road transportation network.

Infrastructure within the project area includes roads, utilities, oil wells and activities associated with agriculture (including livestock and hay production). There are several maintained roads and three power lines that pass through the project area.