Slide 1: Indaba Presentation - Peninsula Minerals Limited
For personal use only 05 February 2008 C ompanies Announcement Office Via Ele ct roni c Lodgement INDABA PRESENTATION- PENINSULA MINERALS LIMITED Please find attached a copy of the Presentation that will be circulated and presented today at the Indaba Mining Conference, being held in Cape Town, Sout
Slide 2: Peninsula Minerals: Advanced Uranium Explorer on Three Continents
For personal use only Peninsula Minerals Advanced Uranium Explorer on Three Continents Wyoming U Lance Project – Wyoming USA Fiji Au Western Australia U South Africa South Australia U/Mo U
Slide 3: Disclaimer
Disclaimer For personal use only This presentation is provided on the basis that the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentati
Slide 4: Mission Statement
For personal use only Mission Statement y To be a 2m lb per year U3O8 producer from an In‐ Situ Recovery operation at the Lance Project in Wyoming USA within 2 years of permitting y To develop an additional 2m lb/year U3O8 and 1m lb Mo operation in the Karoo region of South Africa within 4 years of
Slide 5: Management
For personal use only Management Directors and Management y Executive Chairman Gus Simpson y Strong leadership, corporate and project management skills y Technical Director Dr. Alan Marlow y PhD in economic geology and uranium exploration (ex Gencor) y Chief Operating Officer Andrew Ford y Highly ex
Slide 6: Capital Structure
For personal use only Capital Structure Highly Liquid Daily turnover 2 to 20 million shares y Existing shares 961 million y Options 106 million y $ 7.5 million in Cash as at end Dec 07
Slide 7: Comparative Valuation
Comparative Valuation For personal use only Low market capitalisation Market Cap relative to peers: y WildHorse Energy Market Cap 369 y Bannerman Resources 300 y Deep Yellow y Peninsula has 70 32 significant historic (non JORC) resources at both Wyoming and Karoo projects. y Drilling in May 2008 to
Slide 8: Projects Summary
Projects Summary For personal use only Project Area Historic Exploration Lance project ‐ 18,441 acres (75 km2) 5,036 rotary and percussion holes, Wyoming USA 12 historic resources over 35km of strike consisting of vertically stacked roll front uranium mineralisation 40,000 lb U3O8 per year Pilot Pla
Slide 9: Lance Project Description
For personal use only Lance Project Description y The Lance property is situated in NE Wyoming, 50 km NE of Gillette y Mineralization is hosted as roll fronts within sandstones of the Cretaceous Lance and Fox Hills Sandstone y Over 20 uranium mineralised roll fronts have been identified over a strik
Slide 10: Wyoming Mining Environment
For personal use only Wyoming Mining Environment y Stable, mining‐friendly state with a sparse population of 0.5 Million y State’s major revenue is from oil, coal, coal seam methane and uranium production y The mining industry is a large employer of people in Wyoming y Wyoming production is approxim
Slide 11: Infrastructure
Infrastructure For personal use only y Gillette, 50km to the SW is a major mining service centre y The region is serviced by well maintained sealed roads and the project is traversed by well maintained unsealed roads y Activities in the project area include minimal stock raising, oil production and
Slide 12: Lance Project
Lance Project y A JV between Bethlehem Steel, Nuclear Dynamics and Pacific Power and For personal use only Hydro (NewBeth JV) drilled 5,036 holes for more than 912,000m in the area between 1970 and 1978 y The JV defined significant uranium mineralisation in 12 different locations over a strike lengt
Slide 13: Geology
For personal use only Geology Geology of a Roll Front Source: Wyoming Mining Association y Uranium mineralisation occurs at interface between reduced rocks and oxidized, U enriched groundwater y The mineralised portion of the roll appears black in the photo on the right y In plan the roll fronts are
Slide 14: Geology
Geology For personal use only y Lance Project Area with PEN Peninsula holdings holdings covers 50km N‐S, 10km E‐W y Rock units dipping shallowly to the west N y Main hosts to U mineralisation are the Lance Fm and Fox Hills 50km Sandstone y Mineralised sandstones are contained between semi permeable
Slide 15: Mineralisation
Mineralisation For personal use only Stacked multiple roll front mineralisation y Sections show stacking of U mineralised roll fronts within 2 main sand units y Roll fronts mark oxidation interfaces y Mineralised sands are isolated by impermeable shale layers making the sands amenable to ISR 100m
Slide 16: Lance Project pilot plant
Lance Project y In 1978 a ISR pilot plant was constructed and operated for a period of ten months For personal use only y The Pilot Plant was designed to produce 40,000lb U3O8 /year and ran successfully for 10 months y Benign leachate of sodium bicarbonate used y Recoveries were 89‐95% y After 10 mo
Slide 17: Project Metrics
Project Metrics For personal use only y Based on Historic Resource Estimates our target size is 40‐ 60 million lbs U3O8 y Expected Grade 0.05‐0.08% U3O8 y Shallow deposit (between 128 and 146m below surface) Source: World Nuclear Association
Slide 18: Treatment and Metallurgy
Treatment and Metallurgy For personal use only y Expected Grade 0.05‐0.08% U3O8 y Expected recoveries 89‐95% from NewBeth JV test work y Anticipated capital cost $70 million plus $8 million per year annual well‐field capital y Expected operating costs $15/lb U3O8 * y Proposed process facility is an
Slide 19: Independent Scoping Study
For personal use only Independent Scoping Study* 3 year lead time, 15 year production US$ per lb US$ Million/annum Revenue 62.22 124.44 Capex 5.28 10.56 Financing cost 10% 1.165 2.33 Operating Cost 11.665 23.33 Royalty 6% 3.735 7.47 Annual Capital 5.28 10.56 Total Costs 27.125 54.25 Depreciation 3.8
Slide 20: ISR Advantages
For personal use only ISR Advantages y Low Capital Cost –estimated $33.2 per lb of production vs $64 per lb of production for hard rock mining (Source RBC Capital equity research October 22 2007) y Lower operating costs compared to conventional projects (average $15 per lb U3O8 vs $17.5 per lb U3O8
Slide 21: Recent Activities
Recent Activities For personal use only y Acquired historic drill data and completing its conversion to digital format y Aggressive land acquisition program commenced in November 2007 targeting an additional 41km2 (10,300 acres) of prospective ground with historic mineralised drill intersections 200
Slide 22: 2008 Work program
2008 Work program For personal use only Work Type Timing Prepare NI43‐101 resource from January –March 2008 historic Information Continue Land Acquisition program January – June 2008 Commence environmental permitting January 2008 ‐ 2010 and baseline studies Commencement of independent March 2008 sco
Slide 23: Karoo Project – South Africa
Karoo Project – South Africa For personal use only Area 22 Historic drill area Peninsula Minerals 74% Mmakau Mining (BEE Partner) 26% CEO Bridgette Radebe (Chairperson SAMDA)
Slide 24: Project Location
For personal use only Project Location y Karoo Uranium Province is within the Permo‐ Triassic Karoo Basin y U and Mo mineralisation has been identified in the sandstones of the Beaufort Group
Slide 25: South Africa – Strong Uranium Exploration History
South Africa – Strong Uranium For personal use only Exloration History y Uranium first discovered in 1970 by Union Carbide y Significant Exploration during the 1970’s and 1980’s identified several U ore bodies within the Karoo Basin (eg Ryst Kuil 40m lb U3O8 resource) y Exploration and development a
Slide 26: South Africa Mining Environment
For personal use only South Africa Mining Environment y County with a very long mining history y Well defined system for environmental permitting and development approval y Mining is the most important export earner for South Africa y South Africa has an active uranium mining industry y All uranium
Slide 27: Infrastructure
Infrastructure For personal use only y Beaufort West, lying on the sealed highway between Cape Town and Johannesburg is approximately central to all the Sites and is a service centre for the region y The region is serviced by well maintained sealed and unsealed roads y Topography is a mixture of fla
Slide 28: Geology
Geology For personal use only y U (as uraninite and coffinite) and Mo (molybdenite) are hosted within multi‐sequence sandstone units; U precipitates where oxidized groundwater comes in contact with reduced water from shale units or organic material within the sandstone y Tabular to ribbon style mine
Slide 29: Karoo Project Past Exploration
Karoo Project Past Exploration For personal use only y Uranium exploration commenced in 1969, with major companies Union Carbide, Esso and JCI successfully discovering uranium resources up until 1982 y Peninsula’s Prospecting Rights contain three of these historic resources y As part of the RSA gove
Slide 30: Site U and Mo Mineralisation
Site 22 U and Mo Mineralisation For personal use only 1 4 y In 1979‐1981 JCI 13 12 8 0 13 0 60 1 45 0 0 480 13 0 11 6 1 8 11 8 1 3 60 14 01 4 4 0 0 0 1 20 0 13 0 20 2 drilled 718 14 13 FARM 404 P1 4 00 13 40 13 0 11 20 80 percussion holes and intersected U and 1160 Mo mineralisation 10 0 20 8 0 12 4
Slide 31: Site U and Mo Mineralisation
Site 22 U and Mo Mineralisation For personal use only y In 1979‐1981 JCI drilled 718 percussion holes and intersected U and Mo mineralisation y A historic resource was produced y The main mineralised trend extends for greater than 2 km and other Zoom into detail areas of of Mo sampling mineralisatio
Slide 32: Site Mo Mineralisation
Site 22 Mo Mineralisation For personal use only y Mo is associated with U mineralisation, but is often slightly above and offset y Intersections >1000ppm Mo are common
Slide 33: Site U Mineralisation
Site 45 U Mineralisation For personal use only y In 1981 JCI drilled 60 12 12 8 0 80 12 12 80 126 0 KOOKERS GRAFS VLAKTE 221 26 0 1260 1 over 500 holes and U 0 mineralisation was 12 6 VISCHGAT 223 P1 identified 12 80 1 2 60 y A historic resource VISCHGAT 223 RE was produced 60 12 y The main minerali
Slide 34: Site U Mineralisation
Site 29 U Mineralisation For personal use only y In 1977 Union Carbide drilled and identified U mineralisation y A historic resource was produced however data review is not yet completed y The mineralised zone lies 12m below surface and its extent is still being determined from review of historic da
Slide 35: 2008 Work program
2008 Work program For personal use only Work Type Timing Fly detailed (100m line spacing by 20m January‐March 2008 flight height) radiometric and magnetic survey Commence ground follow‐up of March – June 2008 radiometric anomalies identified in new survey Re‐open and re‐log old holes with a March –
Slide 36: Australian Projects
Australian Projects For personal use only y Western Australia: y Europium y Nelson Well y Lakeside y Gnaweeda y Rabbit Well y Neil Bore y Coperdie Hills y South Australia: y Mt Anna y World's End y Olary y Olary North y Roopena and Gibraltar JV’s (Toro Energy)
Slide 37: Uranium's Future
Uranium’s Future For personal use only y 430 existing Nuclear power stations y 32 under construction y 74 permitted y 214 proposed y World electricity demand to almost double between 2007 and 2030* y Nuclear power as electricity source to increase from 16% in 2007 to 41% over next 20 years* y Uraniu
Slide 38: Why Invest In Peninsula Minerals?
For personal use only Why Invest In Peninsula Minerals? y First class management team y High level of Uranium expertise y Well funded treasury y Undervalued relative to peers y Aggressive 2008 exploration program y Two world class uranium projects y Extensive mineralisation over both projects y Prog