Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Peninsula Minerals — Investor Presentation (July 2008)
43 slides from Peninsula Energy's investor presentation, Jul 9, 2008
Slide 1: Peninsula Minerals Limited Presentation (ASX cover letter)
For personal use only 9 July 2008 C ompanies Announcement Office Via Ele ct roni c Lodgement PENINSULA MINERALS LIMITED PRESENTATION Please find attached a copy of the latest Peninsula Minerals Limited presentation on the Lance Projects in Wyoming, USA and also the Karoo Projects in South Africa. Th
Slide 2: Peninsula Minerals: Advanced Uranium Explorer on Three Continents
For personal use only Peninsula Minerals Advanced Uranium Explorer on Three Continents Wyoming Lance Project – Wyoming USA U 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 1.5m lb per year U3O8 producer from an In‐ Situ Recovery operation at the Lance Projects in Wyoming USA with production within 1 year of permitting y Continue to add additional resources through exploration within our project areas
Slide 5: Management
Management For personal use only Directors and Management y Executive Chairman Gus Simpson Strong leadership, corporate and project management skills y Technical Director Dr. Alan Marlow PhD in economic geology and uranium specialist (ex Gencor) y Chief Operating Officer Andrew Ford Highly experienc
Slide 6: Capital Structure June 2008
For personal use only Capital Structure June 2008 yExisting shares 961 million yOptions 218 million yMarket Cap A$34 million yCash A$ 5.1 million yDaily turnover 3‐14 million
Slide 7: Comparative Valuation
Comparative Valuation For personal use only Research y A recent research report1 rated Peninsula as having At US$50/lb At US $90/lb high quality projects and having been over‐sold y The research report1 rated Peninsula with a very low Price x Cash Generation Multiple highlighting the value of the st
Slide 8: Projects Summary
Projects Summary For personal use only Project Area Historic Exploration Lance projects ‐ 11,381 acres (46 km2) Data from 5,036 rotary and percussion holes. Wyoming USA 13 historic resources over 23 miles (37km) of strike consisting of vertically stacked roll front uranium mineralisation; PEN contro
Slide 9: Lance Project Description
Lance Project Description For personal use only y The Lance projects are situated in NE Wyoming, 31 miles (50 km) NE of Gillette y Mineralisation is hosted by roll fronts within the Lance and Fox Hills Sandstones of Cretaceous age
Slide 10: World Uranium Demand to Grow Rapidly
World Uranium Demand to Grow Rapidly For personal use only The world is well on the way to consuming as much energy in the next 25 years as it has consumed throughout modern history If carbon emissions are to be reduced to 2005 levels then: y Between 24 and 32 new 100MW nuclear reactors will need to
Slide 11: USA Energy Requirements
USA Energy Requirements For personal use only y US energy Consumption continues to rise y Current Reliance on Coal to provide majority of Electricity y Increasing pressure to reduce greenhouse emissions whilst reducing reliance on foreign energy sources y George W Bush recently referred to nuclear p
Slide 12: Wyoming Mining Environment
Wyoming Mining Environment For personal use only y Stable, mining‐friendly state with a sparse population of 0.5 Million y Significant state revenue is from oil, coal, methane and uranium production y The mining industry is a significant employer of people in Wyoming y Continuous uranium production
Slide 13: Site Infrastructure
Site Infrastructure For personal use only y Gillette, 31 miles (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, low
Slide 14: Lance Project History
For personal use only Lance Project History y Uranium mineralisation first identified by Mr Al Stoick in late 1960’s y In 1970 Mr Stoick initiated a JV between Bethlehem Steel, Nuclear Dynamics and later Pacific Power and Hydro (NuBeth JV). y 5,036 holes for more than 3.5 million ft (912,000m) were
Slide 15: Lance Projects History
For personal use only Lance Projects History y After 10 months of successful operation a proposal to commence full scale production was prepared for presentation to the JV members however on the 28 March 1979 the Three Mile Island incident occurred y The pilot plant was shut down shortly after this
Slide 16: Lance Geology
For personal use only Lance Geology Source: Wyoming Mining Association Classic roll front geology in a sandstone aquifer yU3O8 mineralisation occurs at the interface between oxidized and reduced rocks yIn plan the roll fronts are linear but sinuous in nature
Slide 17: Lance Geology
Mineral Title currently held is Lance Geology For personal use only outlined in blue, and y Lance Projects Area with PEN being holdings covers 23 miles acquired (37km) N‐S, 5 miles (8km) E‐W outlined in black y Main hosts to U mineralisation N are the Lance Fm and Fox Hills Sandstone 37 km y Stacked
Slide 18: Historic Drilling
title Historic Drilling For personal use only being acquired outlined y Total of 5,036 holes drilled in black by NuBeth JV in 1970’s N Geological Legend Alluvium Minor U Mineralisation Fort Union Fm Major U host Lance Fm Major U host Fox Hills Fm Pierre Shale Greenhorn Fm Belle Fourche Shale Mowry F
Slide 19: Historic Drilling
Emerson Lucas title Historic Drilling For personal use only being Houx Clark acquired outlined y Total of 5,036 holes drilled Kendrick Ross in black by NuBeth JV in 1970’s y Widespread Uranium Brookes Carey mineralisation identified N from 13 project areas hosted by multiple roll Chatterton fronts O
Slide 20: Historic Drilling
Emerson Lucas title Historic Drilling For personal use only being Houx Clark acquired outlined y 20 mineralised sand units Ross in black identified Kendrick y Between 1 and 8 mineralised Carey sands are present in any one Brookes prospect area N y All mineralisation is shallower Chatterton than 525
Slide 21: Historic Mineralisation
best 13ft @ 0.24%eU3O8 Historic For personal use only best 53ft @ 0.03%eU3O8 best 15ft @ 0.22%eU3O8 best 13ft @ 0.28%eU3O8 Mineralisation best 11ft @ 0.09%eU3O8 y Grades over 0.10% eU3O8 best are widespread showing 7ft @ N potential for higher grade 0.07% eU3O8 zones along mineralised roll best 12ft
Slide 22: Historic Mineralisation
Av 5ft @ 0.04%eU3O8 Av 8ft @ 0.10%eU3O8 Historic For personal use only Av 15ft @ Mineralisation Av 4ft @ 0.12%eU3O8 0.04%eU3O8 Av 13ft @ 0.05%eU3O8 Av 3.5ft @ 0.11%eU3O8 Av 6ft @ 0.11%eU3O8 Av 7ft y All projects contain averaged @ N mineralisation above realistic 0.06% Av 5ft @ 0.04%eU3O8 cut‐off th
Slide 23: Exploration Potential
title Exploration For personal use only being acquired outlined in black Potential y Global Exploration Target N Size for all project areas and areas between and along strike is 39‐60 million short tons @ 0.05‐0.07% eU3O8 Geological Legend for 50‐76 million lbs U3O8 1 Alluvium Minor U Mineralisation
Slide 24: Initial Production Centres
Initial Production For personal use only Production Centre 1 Centre's Ross Exploration target size 8-12 million lb U3O8 y Exploration target size at Ross for feasibility decision is 6.4‐9.5 N million short tons @ 0.05‐0.07% eU3O8 for 8‐12million lb U3O8 1 Geological Legend y Barber exploration targe
Slide 25: Possible Treatment and Metallurgical Process
Possible Treatment and Metallurgical Process For personal use only y Expected Grade 0.05‐0.09% U3O8 y Estimated recoveries 70% y Anticipated capital cost US$40 million plus US$8 million per year annual well‐field capital y Estimated operating costs US$15/lb U3O8 * y Total costs US$28/lb y Proposed p
Slide 26: Preliminary Scoping Study
For personal use only Preliminary Scoping Study* US$ per lb US$ /year Revenue $65 $98 million Capital Expenditure $1.3 $2.0 million Financing 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 $28.30 $43.0 million As
Slide 27: Recent Activities
Recent Activities For personal use only y Identification and correlation of mineralised roll fronts throughout project y Aggressive land acquisition program commenced in November 2007 targeting an additional 16,175 acres ( 64km2 ) of prospective ground with historic mineralised drill intersections 2
Slide 28: 2008-2009 Work Program
2008‐2009 Work Program For personal use only Work Type Timing Confirm veracity of historic data January ‐ March 2008 Prepare internal resource estimate from February –April 2008 historic Information for scoping purposes Continue Land Acquisition program January – June 2008 Commence environmental per
Slide 29: Karoo Projects – South Africa
Karoo Projects – 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 30: Projects Location
For personal use only Projects 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 31: 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 y Exploration and development abandoned when U price collapsed in 1
Slide 32: 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 33: 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 34: 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 35: Karoo Projects Past Exploration
Karoo Projects 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 Sites 22, 29 and 45 contain three of these historic U/Mo resources y As part of the R
Slide 36: 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 37: 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 38: Karoo Current Exploration
Karoo Current Exploration For personal use only y Detailed low level radiometric survey flown over all six prospecting Rights in January and February 2008 y New radiometric uranium anomalies have been identified at all six Prospecting Rights y Potential to extend existing historic uranium resources
Slide 39: Site Radiometric Anomalies
Site 22 Radiometric Anomalies Existing GT-7 y New Radiometric For personal use only Strong new uranium resource area (blue) survey detects historic anomalies in areas with no with relatively subtle resource area with historic drilling radiometric moderate anomaly signature y exploration target size
Slide 40: Site Radiometric Anomalies
Site 29 Radiometric Anomalies For personal use only Historic Union Carbide Resource y Small historic Union Existing U Carbide resource at tail end anomalies of existing anomalous U extended New U radiometric trend anomalies forming distinct NW trend y Existing U anomalies extended y Many new, strong
Slide 41: 2008 Karoo Work Program
2008 Karoo Work program For personal use only Work Type Timing Fly detailed (100m line spacing by 20m Complete flight height) radiometric and magnetic survey Review radiometric anomalies and Complete prioritise for field testing Commence ground follow‐up of July–August 2008 radiometric anomalies ide
Slide 42: 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 World class uranium projects in USA and South Africa y Initiated development of the Lance Projects y Extensive new radiomet
Slide 43: Notes
Notes For personal use only 1Please note that the potential quantity and grade of the Exploration Targets in this presentation are conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determ
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