Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Peninsula Minerals — Investor Presentation (May 2009)
44 slides from Peninsula Energy's investor presentation, May 6, 2009
Slide 1: Company Presentation (ASX cover letter)
For personal use only 6 May 2009 C ompanies Announcement Office Via Ele ct roni c Lodgement COMPANY PRESENTATION Attached is the updated Peninsula Minerals Limited presentation. A copy of the presentation can also be obtained from our website at: www.peninsulaminerals.com.au. Yours Sincerely Jonatha
Slide 2: Developing Uranium Projects on Three Continents
For personal use only 1 Developing Uranium Projects on Three Continents
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: Capital Structure
Capital Structure For personal use only 3 Existing shares 961 million Options 241 million Market Cap $30 million Cash $3.5 million Daily turnover 3-14 million ASX Code PEN
Slide 5: Directors and Management
Directors and Management 4 Executive Chairman Gus Simpson – Strong leadership, corporate and project management skills For personal use only Technical Director Dr. Alan Marlow – PhD in economic geology and uranium specialist (ex Gencor) Chief Operating Officer Tony Simpson – Mining Engineer with ove
Slide 6: Our Vision
Our Vision 5 To build a 1.5m lbs p.a. U3O8 production For personal use only facility at the Wyoming projects with production targeted by Q1 2012 To build a 3m lbs per year production facility in the Karoo with production targeted by 2017 The vision statement is conceptual in nature, and there is ins
Slide 7: Global Energy Requirements
For personal use only Global Energy Requirements 6 The world is well on the way to consuming as much energy in the next 25 years as it has consumed throughout modern history Current reliance on coal to provide majority of base load power generation to continue Increasing pressure to reduce greenhous
Slide 8: Global Nuclear Power Generation
Global Nuclear Power Generation For personal use only 7
Slide 9: Uranium Supply
For personal use only Uranium Supply 8
Slide 10: Uranium Shortfall
Uranium Shortfall 9 Cigar Lake development delay due to mine flooding For personal use only (October 2006 / August 2008); Production was to be 2007, now 2013/2014 at earliest – UNLIKELY Olympic Dam expansion - DELAYED INDEFINITELY Midwest Mine (McClean Lake) expected start-up 2010 - SHELVED Rossing
Slide 11: Projects Summary
Projects Summary 10 56 km2 land holding For personal use only 13 project areas of drill defined mineralisation Averaged drilled grades up to 1,250ppm eU3O8 39-60m short tons at 500-700ppm for 50-76m lbs U3O8 exploration target Successful production from pilot plant utilising low cost ISR mining meth
Slide 12: USA Uranium Mining
USA Uranium Mining For personal use only 11 In 1980 the USA was the world's largest uranium producer (40 million pounds) Contracted to 1.7 million pounds in 2003 Expanded 4.5 million pounds in 2007 Dundee Securities estimates US production expansion to 17.7 million pounds by 2015
Slide 13: USA NRC Rules for the Exporting of U Products
USA NRC Rules for the Exporting of U Products For personal use only 12 Exporting of Source Material Requires a license for export for peaceful uses of source material (yellow cake) The US recently allowed the export of U products to India for peaceful purposes Restricted Destinations Afghanistan, An
Slide 14: Wyoming – A Mining State
Wyoming – A Mining State 13 USA’s leading uranium producer For personal use only Continuous production since 1951 All current production from In-Situ Recovery (ISR) Production to estimated to grow from 3m lb in 2007 to 15m lb in 2015 The Wyoming ISR District represents 55% of US uranium production,
Slide 15: Lance Projects – Location
Lance Projects – Location For personal use only 14 Powder River Basin is the home of ISR Gillette is a major mining services centre 1st class road and rail infrastructure
Slide 16: Lance Projects – History
Lance Projects – History For personal use only 15
Slide 17: From Exploration to Mine
From Exploration to Mine For personal use only 16 GRASSROOTS REGIONAL DELINEATION FEASABILITY MINING EXPLORATION DRILLING STUDY Reconnaissance Stratigraphic Delineation of Resource drilling Well Field or Archive review Drilling to define mineralised roll Hydrological tests grade control Geological r
Slide 18: Lance Projects – Projects
Lance Projects – 13 Projects For personal use only 17 5036 holes drilled for 912,000m Wide spread mineralisation (37km of strike) 22 roll fronts extend for a combined linear strike length of 127 miles (207 km) 13 projects with existing uranium mineralisation Ross & Barber Projects most advanced Sign
Slide 19: Lance Projects – 2008 Work Programme
Lance Projects – 2008 Work Programme For personal use only 18 Review of historical data by independent consultants ( World Industrial Minerals) confirmed historic drill defined uranium mineralisation and generated achievable resource targets Review of historic engineering studies has confirmed the s
Slide 20: Lance Projects – Roll Front Formation
Lance Projects – Roll Front Formation For personal use only 19 Lance Projects ROLL- FRONT DEPOSIT U hosted in 22 Roll Fronts APPROX. 500 – 2,500ppm URANIUM ORE Mineralised depth 120-160m 1.5-3m thick mineralised zones
Slide 21: Lance Projects – In Situ Recovery Process
Lance Projects – In Situ Recovery Process For personal use only 20 The recovery of uranium from a sandstone aquifer by ISR is the reverse of its deposition Groundwater is combined with oxygen and bicarbonate and is circulated through the deposit via injection and recovery wells The oxygen enriched w
Slide 22: Lance Projects – ISR Criteria
Lance Projects – ISR Criteria For personal use only 21 Containment – deposits must be located between two impermeable layers of clay or shale Permeability - rock or sand must be porous and allow lixivant (the oxygen and bicarbonate solution) to flow through the deposit – good horizontal and vertical
Slide 23: Advantages of ISR
Advantages of ISR For personal use only 22 ISR is conducted with minimal disturbance of the natural environment Unlike the conventional mining of uranium, ISR recovers the uranium in a solution rather than in ore This does not involve elevated temperatures, pressures and/or concentrated reactants Lo
Slide 24: Lance Projects – Development Model
Lance Projects – Development Model For personal use only 23 To expand and delineate 15m lb U3O8 of JORC resource at the Ross & Barber Projects – Ross feasibility decision is 5 - 8 million tonnes @ 500 - 700ppm U3O8 for 8 -12m lb U3O8 – Barber feasibility decision is 3 - 4 million tonnes @ 700 - 900p
Slide 25: Lance Projects – Development Model
Lance Projects – Development Model For personal use only 24 Proposed production process; ISR mining with centralised resin strip plant to recover the uranium Uranium mineralisation over the 13 projects 500 – 1,250ppm eU3O8 Estimated recoveries 70% - 80% Anticipated capital cost US$40 million plus US
Slide 26: Lance Projects – Preliminary Scoping Study
Lance Projects – Preliminary Scoping Study* For personal use only 25 US$ per lb US$ / Year Revenue $65 $98 million Capex amortisation $1.3 $2 million Financial cost 10% $2.7 $4 million Operating Cost $15 $23 million Royalty 6% $4 $6 million Annual well field capital $5.3 $8 million Total Costs $28.3
Slide 27: Lance Projects – Activities
Lance Projects – Activities For personal use only 26 Permitting Exploration Resource Definition BFS Construction Commissioning
Slide 28: Karoo Projects – Location
Karoo Projects – Location For personal use only 27 Consists of 6 project areas 1,300 drill holes - Sites 22, 29 The Karoo is one of the main areas and 45 of focus for uranium Drill defined mineralisation at exploration in RSA sites 22, 29,and 45 with grades to 1,400ppm eU3O8 U and Mo mineralisation
Slide 29: South Africa Mining Environment
South Africa Mining Environment For personal use only 28 Mining is the most important export earner for South Africa PEN’s has the required BEE partner which holds 26% of the Projects South Africa has an active uranium industry The SACG flew a 1km spaced radiometric survey in 1976 over the project a
Slide 30: Karoo Projects - History
Karoo Projects - History For personal use only 29
Slide 31: Karoo Projects – Exploration Target Size
Karoo Projects – Exploration Target Size 30 Target Size For personal use only up to 29mlb Karoo Projects Potential 70-110m lb U3O8 Additional Greenfields Potential 20-40m lb U3O8 Total Potential - up to 150m lb U3O8 (30-60m tonnes @ 1,200-1,400ppm U3O8 ) up to 25mlb up to 17mlb up to 16mlb up to 12m
Slide 32: Mineralisation Confirmation and Expansion (Site 22)
For personal use only Mineralisation Confirmation and Expansion 31 Key Features: Site 22 • large drill hole database • historic published mineralisation* 708 percussion holes drilled by JCI 1979 -1981 Drilled uranium mineralisation averages1,400ppm eU3O8 (cut-off grade of 300ppm Drilling Required •
Slide 33: Mineralisation Confirmation and Expansion
Mineralisation Confirmation and Expansion 32 Site 29 For personal use only Key Features: • historic drilled mineralisation* • High grade targets ~100 percussion holes drilled by Union Carbide 1977-79 Drilled uranium mineralisation averages 1,170ppm eU3O8 Three other high priority targets verified *
Slide 34: Mineralisation Confirmation and Expansion
For personal use only Mineralisation Confirmation and Expansion 33 Site 45 Key Features: • large drill hole database • historic published mineralisation* 276 percussion holes drilled by JCI 1981 -1982 Drilled uranium mineralisation averages 700ppm eU3O8 (cut-off grade of 300ppm) Drilling Required •
Slide 35: Mineralisation Confirmation and Expansion (Site 29)
Mineralisation Confirmation and Expansion 34 On ground testing validates Site 29 For personal use only aerial anomalies Drilled mineralisation within syncline proves mineralised nature of sandstone (2.8km2)* High U3O8 and Mo grades at four sites on margins of syncline in centre of project Very small
Slide 36: Mineralisation Confirmation and Expansion
Mineralisation Confirmation and Expansion 35 Site 22 For personal use only New Radiometric survey detects historic resource area with moderate anomaly Target size at Site 22 is multiple bodies of Tonnage: 0.7- 1.5 million Grade:1,300 - 1,500ppm U3O8 : 2 - 3mlb U3O8 Many new, stronger anomalies ident
Slide 37: Mineralisation Confirmation and Expansion
Mineralisation Confirmation and Expansion 36 Site 49 For personal use only Anomalous Zone 2 • Consistently elevated eU3O8 grades. • Anticipated that the majority of the eU3O8 grades represent an underestimate of the actual grade. • Good possibility of lateral extension of the mineralisation for appr
Slide 38: Karoo Projects – Exploration Target Size
Karoo Projects – Exploration Target Size For personal use only 37 Key Drivers of Exploration Targets Site 22 Site 45 Site 29 Site 5 Site 37 Site 49 Historic Resources 2.8m lbs 4.8m lbs 0.6m lbs Established Mineralisation Yes Yes Yes Yes Yes Yes Prospective strike length 25km 40km 22km 20km 25km 40km
Slide 39: Karoo Projects - Activities
Karoo Projects - Activities For personal use only 38 Historic Resource Definition Testing New Target Areas Regional Exploration
Slide 40: Australian Projects - Location
Australian Projects - Location For personal use only 39 Targeting Calcrete hosted Deposits
Slide 41: Australia Projects - Activities
Australia Projects - Activities For personal use only 40 Interpretation of Current Information Develop Strategy Regional Exploration Acquisitions
Slide 42: Why Invest In Peninsula?
Why Invest In Peninsula? For personal use only 41 Multi-mine/multi - country potential Sustained development from quality project pipeline in USA, South Africa & Australia Relatively short time frame (3 - 4 yrs) to producing 1.5m lbs building to 4.5m lbs (7 - 8 yrs) U3O8 Committed to growth and expa
Slide 43: Competent Person
Competent Person For personal use only 42 The information in this presentation that relates to Exploration Results and Exploration Potential at the Lance Project is based on information compiled by Mr Jim Guilinger. Mr Guilinger is President of consultancy World Industrial Minerals and is a Competen
Slide 44: Peninsula Minerals
For personal use only Peninsula Minerals Developing Uranium Projects on Three Continents
Peninsula Minerals — Investor Presentation (May 2009) on 6ix