Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Peninsula Minerals — New York Hard Assets Investment Conference 2008
29 slides from Peninsula Energy's conference presentation, May 12, 2008
Slide 1: New York Hard Assets Investment Conference Presentation
For personal use only 12 May 2008 C ompanies Announcement Office Via Ele ct roni c Lodgement NEW YORK HARD ASSETS INVESTMENT CONFERENCE PRESENTATION Please find attached a copy of the presentation that will be circulated and presented today by Peninsula Minerals Limited at the New York Hard Assets C
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 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 Project in Wyoming USA within 2 years of permitting y Continue to add additional resources through exploration within our project areas
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 specialist (ex Gencor) y Chief Operating Officer Andrew Ford y Highly exp
Slide 6: Capital Structure
For personal use only Capital Structure yExisting shares 961 million yListed Options 106 million yMarket Cap $40 million yCash $ 6 million yMean daily turnover 14 million
Slide 7: Comparative Valuation
Comparative Valuation For personal use only Research y A recent research report* rated Peninsula as having At US$50/lb At US $60/lb high quality projects and has been over sold y The research report* rated Peninsula with a very low Price x Cash Generation Multiple highlighting the value of the stock
Slide 8: Projects Summary
Projects Summary For personal use only Project Area Historic Exploration Lance project ‐ 11,381 acres (46 km2) Data from 5,036 rotary and percussion holes. Wyoming USA 12 historic resources over 23 miles (37km) of strike consisting of vertically stacked roll front uranium mineralisation; PEN control
Slide 9: Lance Project Description
Lance Project Description For personal use only y The Lance property is 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 y The roll fronts are frequently stacked vertically with 1 to 8 presen
Slide 10: 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 Wyoming production is approxim
Slide 11: Infrastructure
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 leve
Slide 12: Lance Project History
Lance Project History For personal use only 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 13: Lance Project History
Lance Project History For personal use only 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 a
Slide 14: Lance Geology
For personal use only Lance Geology Source: Wyoming Mining Association Classic Roll Front Geology in Sandstone Aquifer yUranium mineralisation occurs at the interface between reduced and oxidized rocks yIn plan the roll fronts are linear but sinuous in nature
Slide 15: Lance Geology
Mineral Lance Geology For personal use only Title (Blue) and title y Lance Project Area with PEN being holdings covers 23 miles Acquired (37km) N‐S, 5 miles (8km) E‐W (Black) y Main hosts to U mineralisation N are the Lance Fm and Fox Hills Sandstone 37 km y Stacked mineralised Geological Legend san
Slide 16: Historic Drilling
Mineral Historic Drilling For personal use only Title currently held and y Total of 5,036 holes drilled being by NuBeth JV in 1970’s acquired (Black) 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 Four
Slide 17: Historic Drilling
Emerson Lucas Mineral Historic Drilling For personal use only Title Houx Clark currently held and y Total of 5,036 holes drilled Kendrick Ross being by NuBeth JV in 1970’s acquired y Widespread Uranium (Black) Brookes Carey mineralisation identified N from 13 areas hosted by multiple roll fronts Cha
Slide 18: Historic Drilling
Emerson Lucas Mineral Historic Drilling For personal use only Title Houx Clark currently held and y 20 mineralised sand units Ross being identified Kendrick acquired y Between 1 and 8 mineralised (Black) sands are present in any one Brookes Carey N prospect area y All mineralisation shallower Chatte
Slide 19: 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 20: 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 prospects contain @ N mineralisation above realistic 0.06% Av 5ft @ 0.04%eU3O8 cut‐off thresholds
Slide 21: Mineral Exploration: Target Size
Mineral Exploration For personal use only Title (Blue) and title being Target Size acquired (Black) y Based on the historic drilling N our target size at each of the 13 prospects is 0.2‐4.0 million lbs U3O8 y Expected grade range is Geological Legend 0.05‐0.08% U3O8 Alluvium Minor U Mineralisation F
Slide 22: Mineral Exploration: Potential
Mineral Exploration For personal use only Title (Blue) and title being Potential acquired (Black) y Additional Exploration N Potential between and within existing prospects is 30‐50 million lbs U3O8 at 0.05‐0.08% U3O8 Geological Legend Alluvium Minor U Mineralisation Fort Union Fm Major U host Lance
Slide 23: Mineral Exploration: Potential
Mineral Exploration For personal use only Title (Blue) and title being Potential acquired (Black) y Additional Exploration N Potential between and within existing prospects is 30‐50 million lbs U3O8 at 0.05‐0.08% U3O8 Geological Legend Alluvium Minor U Mineralisation Fort Union Fm Major U host Lance
Slide 24: Possible Treatment and Metallurgical Process
Possible Treatment and Metallurgical Process For personal use only y Expected Grade 0.05‐0.08% U3O8 y Estimated recoveries 70% y Anticipated capital cost $70 million plus $8 million per year annual well‐field capital y Estimated operating costs $15/lb U3O8 * y Proposed process facility is an ISR res
Slide 25: Preliminary Scoping Study
For personal use only Preliminary Scoping Study* 2 year lead time, 18 year production US$ per lb US$ /year Revenue $65 $98 million Capex $2.3 $3.5 million Financing cost 10% $1 $7 million Operating Cost $15 $23 million Royalty 6% $6 $6 million Annual Capital $5.3 $8 million Total Costs $30.60 $43.5
Slide 26: ISR Advantages
For personal use only ISR Advantages y Low Capital Cost –per lb of production compared to conventional projects y Lower operating costs compared to conventional projects (average $15 per lb U3O8 vs $17.5 per lb U3O8 RBC Capital comparison of 5 ISR and 4 conventional mining projects) y Smaller work f
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: 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 Extensive mineralisation at Lance Project y Extensive new radiometri
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