Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Shareholder Meeting (November 2008)
44 slides from Peninsula Energy's shareholder meeting presentation, Nov 17, 2008
Slide 1: Peninsula Minerals: Developing Uranium Projects on Three Continents
For personal use only Peninsula Minerals Developing Uranium Projects on Three Continents Wyoming Lance Project – Wyoming USA U Western Australia U South Africa South Australia U/Mo U
Slide 2: 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 3: Capital Structure
Capital Structure ASX Code PEN For personal use only yExisting shares 961 million yOptions 218 million yMarket Cap A$17 million yCash A$4.6 million yDaily turnover 3‐14 million
Slide 4: Management
For personal use only Management Characterised by Leadership and Uranium Expertise 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 Ch
Slide 5: Comparative Valuation
For personal use only Comparative Valuation Research y Research report1 rated Peninsula as having high quality projects and as being under At US$50/lb valued At US $90/lb y Reasons: y USA mining environment misunderstood y Need for land acquisition secrecy resulted in a lack of project information 1
Slide 6: Global Energy Requirements
For personal use only Global Energy Requirements The world is well on the way to consuming as much energy in the next 25 years as it has consumed throughout modern history y Current reliance on coal to provide majority of base load power generation to continue y Increasing pressure to reduce greenho
Slide 7: World Uranium Demand to Grow Rapidly
World Uranium Demand to Grow Rapidly For personal use only y Nuclear Power is the complimentary base load power source to coal y Uranium demand will increase from 170 million lb per annum to between 536 and 661 million lb per annum by 2050 (equivalent to 15 Olympic Dam sized mines)* y Current reacto
Slide 8: Projects Summary
Projects Summary Project Area Historic Exploration For personal use only Lance projects ‐ 12,905 acres (52 km2) Data from 5,036 rotary and percussion holes for Wyoming USA 912,000m. 13 historic resources over 23 miles (37km) of strike consisting of vertically stacked roll front uranium mineralisatio
Slide 9: Lance Project Description
For personal use only Lance Project Description y The Lance projects are situated in NE Wyoming, 31 miles (50 km) NE of Gillette in the Powder River Basin y The PRB has 2 operating ISR mines y The PRB has 5 ISR projects in restoration or permitting y Wyoming has another 10 Uranium projects in variou
Slide 10: Wyoming Mining Environment
Wyoming Mining Environment y US annual consumption of 50 million lb U3O8 per/year For personal use only y 92% of US uranium demand is met by imports y Federal Government desires increased self reliance y In 1980 the USA was the worlds leading uranium producer y Wyoming is currently the USA’s leading
Slide 11: Lance Project History
Lance Project History y Uranium mineralisation first identified by Mr Al Stoick in late 1960’s For personal use only y In 1970 Mr Stoick initiated a JV between Bethlehem Steel, Nuclear Dynamics and later Pacific Power and Hydro (NuBeth JV). y Between 1970‐1979 5,036 holes for more than 3.5 million f
Slide 12: Lance Projects History
Lance Projects History y After 6 months of successful operation a proposal to commence full scale For personal use only 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 13: Site Infrastructure
For personal use only Site Infrastructure 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 level oil and gas production y Topography is gently undulating hills c
Slide 14: Lance Geology
Mineral Title Lance Geology currently held is For personal use only outlined in blue, y Lance Projects Area with PEN and holdings covers 23 miles (37km) being N‐S, 5 miles (8km) E‐W acquired outlined y Main hosts to U mineralisation in black are the Lance Formation and N Fox Hills Sandstone y 22 Rol
Slide 15: Historic Exploration
Historic title Exploration For personal use only being acquired outlined y Total of 5,036 holes for in black 912,000m drilled 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 Fourc
Slide 16: Historic Exploration
Emerson Historic Lucas title Exploration For personal use only being Houx Clark acquired outlined y Widespread Uranium Ross in black mineralisation hosted in Kendrick multiple roll fronts identified over 13 project Brookes Carey areas N Chatterton Osborne Richards Geological Legend Alluvium Minor U
Slide 17: Historic Exploration
Emerson Historic Lucas title Exploration For personal use only being Houx Clark acquired outlined y Over 22 mineralised sand units Ross in black identified Kendrick y Up to 8 mineralised sands are Carey present in any one project area Brookes N y Mineralisation depth between 360 ‐500ft (120‐160m) Ch
Slide 18: Historic Mineralisation
Av 5ft @ 400ppm eU3O8 Historic Av 8ft @ 1,000ppm eU3O8 Mineralisation For personal use only Av 15ft @ 400ppm eU3O8 Av 4ft @ 1,200ppm eU3O8 y All projects contain grades above Av 13ft @ 500ppm eU3O8 realistic cut‐off thresholds of Av 3.5ft @ 1,100ppm 200ppm U3O8 for an ISR operation eU3O8 Av 6ft @ 1,
Slide 19: Historic Mineralisation
Historic best 13ft @ 2,400ppm eU3O8 Mineralisation For personal use only best 53ft @ best 15ft @ 2,200ppm eU3O8 300ppm eU3O8 best 13ft @ 2,800ppm eU3O8 y Grades over 1,000ppm eU3O8 are widespread best 11ft @ 900ppm eU3O8 y Potential for higher grade zones best 7ft exists @ N 700ppm y Average thickne
Slide 20: Exploration Potential
Exploration title Potential For personal use only being acquired outlined in black y Global Exploration Target Size within and between all project areas is 39‐60 million short tons N @ 500‐700ppm eU3O8 for 50‐76 million lbs U3O81 y Historic testing supports In‐Situ Recovery process Geological Legend
Slide 21: 2008 Drilling
For personal use only 2008 Drilling Intercept ft y Recent 25 hole 4,510m rotary over PFN U3O8 mud program at the Ross Hole ID From ft To ft grade ppm Project RMRD0001 568.00 585.00 17.5 @ 320 RMRD0003 441.25 452.75 11' @ 650 474.75 479.25 4.5' @ 1,210 y Presence of the historic 484.75 488.25 3.5' @
Slide 22: In-Situ Recovery (Leaching)
In‐Situ Recovery (Leaching) For personal use only y ISR is the extraction of Uranium from sandstone aquifers by the cycling of oxygen enriched water through the aquifer which hosts U3O8 deposits on the redox fronts y These deposits occur from the precipitation of U3O8 out of solution when uranium en
Slide 23: ISR Geology
ISR Geology U3O8 mineralisation occurs at the interface For personal use only between oxidized and reduced zones 4.5ft @ 1,210ppm U3O8 barren Photo of drill core from new hole RMRD0003 showing reduced‐ oxidized mineralisation boundary Classic roll front geology in a sandstone aquifer In situ recover
Slide 24: Ross Project
Ross Project Historic hydrological and metallurgical testing demonstrate: For personal use only yContainment – show impermeable shale beds are present above and below the main uraniferous sandstones yPermeability ‐ good horizontal (2‐4 darcy’s) and vertical permeability (1‐3 darcy’s) and porosity (3
Slide 25: Development Model
For personal use only Development Model y To delineate 15m lb U3O8 of Indicated Resource at two project locations y To build a 1.5m lb per year U3O8 production facility and an In‐ Situ Recovery operation at a centralised location within the Lance Projects with production within 1 year of permitting
Slide 26: Development Model
Development Model For personal use only Initial Production Centre's Production Centre 1 y Exploration target size at Ross Ross for feasibility decision is 6.4‐9.5 Exploration target size million short tons @ 500‐ 8-12 million lb U3O8 700ppm eU3O8 for 8‐12 million N lb U3O8 1 y Barber exploration tar
Slide 27: Development Model: Proposed Treatment and Metallurgical Process
Development Model Proposed Treatment and Metallurgical Process For personal use only y Proposed process facility is an ISR resin strip plant central to the well fields producing approx 1.5 million lb U3O8 per year y Expected grade across the prospects is 500‐900ppm U3O8 y Estimated recoveries 70% y
Slide 28: Development Model: Preliminary Scoping Study
Development Model Preliminary Scoping Study * For personal use only 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 Assumptions Tota
Slide 29: 2008-2009 Work Program
For personal use only 2008‐2009 Work Program 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 – December 2008 Commence environmental
Slide 30: Why Invest In Peninsula Minerals?
Why Invest In Peninsula Minerals? For personal use only y World class uranium projects in USA and South Africa y Undervalued relative to peers y First class management team y High level of uranium expertise y Well funded treasury y Development initiated at the Lance projects y Extensive new radiomet
Slide 31: Projects Location
Projects Location For personal use only 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 32: South Africa – Strong Uranium Exploration History
South Africa – Strong Uranium For personal use only Exploration 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
Slide 33: South Africa Mining Environment
South Africa Mining Environment For personal use only 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: Karoo Current Exploration
Karoo Current Exploration For personal use only y Detailed low level radiometric survey flown over all six project areas in January and February 2008 y New radiometric uranium anomalies have been identified at all six project areas y Potential to extend existing historic uranium resources has been i
Slide 40: Site Radiometric Anomalies – Ground Validation
Site 29 Radiometric Anomalies – Ground Validation For personal use only y On ground testing validates aerial anomalies y High U3O8 and Mo grades at four sites on margins of syncline in centre of project y Historic resource within syncline proves mineralised nature of sandstone (2.8km2) y Very small
Slide 41: 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 42: 2008-2009 Karoo Work program
2008‐2009 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–December 2008 radiometric anomal
Slide 43: Why Invest In Peninsula Minerals?
Why Invest In Peninsula Minerals? For personal use only y World class uranium projects in USA and South Africa y Undervalued relative to peers y First class management team y High level of Uranium expertise y Well funded treasury y Development initiated at the Lance Projects y Extensive new radiomet
Slide 44: 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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