The following is an extract from the report.
Peninsula Energy Ltd ("Peninsula") is an emerging Australian-based advanced stage uranium developer. The Company's flagship property is the Lance ISR Uranium Projects, located in the Powder River Basin, north-eastern Wyoming, USA.
On April 2, 2012, Peninsula announced a further upgrade to the JORC-compliant uranium resource estimate to 51.5 million pounds U3O8 for the Lance Projects.
The upgrade represents an increase of 24.3% to the total resource and was achieved by the completion of an additional 806 drill holes subsequent to the June 2011 resource estimate.
The revised JORC compliant vanadium resource estimate of 4.9 million pounds V2O5, represents a 111% increase on the previous resource estimate.
In late 2011, Peninsula announced the results of the Definitive Feasibility Study (NYSE:DFS) on the Ross Production Unit, one of the three production units, which also includes the Kendrick Production Unit and Barber Production Unit, and mining operation at the Lance projects.
The Study was based on planned steady state production of 2.19 million pounds U3O8 per annum from the three production units within 3 years of start-up, with the Mine Plan based on 17.2 million pounds recovered U3O8.
Construction of the Lance Projects is estimated at 6-9 months commencing in the second half of 2012, with first production targeted for 2013.
On April 3, 2012, Peninsula advised that it had formerly resolved to commence commercial mining operations at the Lance Projects.
On May 3, 2012, Peninsula announced the completion by TREC (Wyoming-based ISR engineers) of the Lance Feasibility Study (FS) on the three production units planned at Ross, Kendrick and Barber.
The FS has been completed on the March 2012 JORC compliant resource of 51.5 million pounds at the three production units only.
This number assumes the conversion of 23.88 million pounds of the 36.78 million pounds of Inferred U3O8 resources to the Indicated category or better.
The FS anticipates the expanded Project including Ross, Kendrick and Barber production units feeding a Central Processing Plant (NYSE:CPP) with an expandable capacity of up to 3.0 million pounds per annum, but excludes the production of vanadium at this stage.
In the FS the first production unit will be at Ross with a capacity of 750,000 pounds U3O8 per annum and production ramping up over 3 years to 2.2 million pounds per annum steady-state production with the inclusion of the Kendrick and Barber production units.
In South Africa, Peninsula holds a 74% (BEE Group 26%) interest in prospecting rights to 6 project areas in the Karoo region, formerly explored by JCI and Union Carbide.
Preliminary geological studies have estimated a combined exploration potential in the Karoo of 30-60 million tonnes grading 700 - 1,400 ppm eU3O8 for 90-150 million pounds eU3O8.
Peninsula's target over the next 12 months is to delineate 30 million pounds of eU3O8 (15-25 million tonnes grading 700 - 1,400 ppm eU3O8).
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