Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Peninsula Minerals — Investor Presentation (September 2008)
44 slides from Peninsula Energy's investor presentation, Sep 18, 2008
Slide 1: Peninsula Minerals Limited Presentation (ASX cover letter)
For personal use only 18 September 2008 C ompanies Announcement Office Via Ele ct roni c Lodgement PENINSULA MINERALS LIMITED PRESENTATION Please find attached an updated version of the Peninsula Minerals Limited presentation on the Lance Projects in Wyoming, U.S.A and the Karoo Projects in South Af
Slide 2: Developing Uranium Projects on Three Continents
For personal use only Peninsula Minerals Developing Uranium Projects on Three Continents Wyoming Lance Project j – Wyoming y g 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: Capital Structure
C it l St Capital t Structure PEN For personal use only ASX Code yExisting shares 961 million yOptions 218 million yMarket Cap A$25 million yCash C h A$4 6 million A$4.6 illi yDaily turnover 3 14 million 3‐14
Slide 5: Management
Management For personal use only Characterised byy Leadership p and Uranium Expertise p Directors and Management y Executive Chairman Gus Simpson Strong leadership, corporate and project management skills y T h i l Director Technical Di t Dr. D Alan Al Marlow M l PhD in economic geology and uranium
Slide 6: Comparative Valuation
Comparative Valuation For personal use only 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 7: Global Energy Requirements
Global Energy Requirements 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 y Current reliance on coal to provide majority of base load power generation to continue y Increasing pressure to reduce greenho
Slide 8: World Uranium Demand to Grow Rapidly
World Uranium Demand to Grow Rapidly For personal use only y Nuclear N l Power P is i the th complimentary base load power source to coal y Uranium demand will increase from 170 million lb per annum to between b 536 and 661 million lb per annum by 2050 (equivalent to 15 Olympic Dam sized mines) mine
Slide 9: Projects Summary
Projects j Summaryy For personal use only Project Area Historic Exploration 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 mineralisa
Slide 10: 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 in the Powder Ri River Basin B i y The PRB has 2 operating ISR mines y The Th PRB h has 5 ISR projects in restoration or permitting y Wyoming has another 10 Uranium projec
Slide 11: Wyoming Mining Environment
Wyoming y g Miningg Environment For personal use only y US annual consumption of 50 million lb U3O8 per/year 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 USA’
Slide 12: Lance Project History
Lance Project j Historyy 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).JV) y Between 1970‐1979 5,036 holes for more than 3.5 mil
Slide 13: 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 14: Site Infrastructure
Site Infrastructure For personal use only 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 15: Lance Geology
Mineral Title Lance Geology currently For personal use only held is outlined in blue blue, y Lance a ce Projects ojec s Area ea 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 Hill
Slide 16: Historic Exploration
Historic Exploration For personal use only title being acquired outlined y Total of 5,036 holes for in black 912,000m drilled by NuBeth JV in 1970’s 9 0s 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
Slide 17: Historic Exploration
Emerson Historic Exploration l i For personal use only Lucas title being Houx Cl k Clark acquired outlined y Widespread Uranium Ross in black mineralisation hosted in Kendrick multiple roll fronts identified over 13 project Brookes Carey areas N Ch tt t Chatterton Osborne Richards Geological Legend
Slide 18: Historic Exploration
Emerson Historic Exploration l i For personal use only Lucas title being Houx Cl k Clark acquired outlined y Over 22 mineralised sand units Ross in black identified Kendrick y Upp to 8 mineralised sands are Carey present in any one project area Brookes N y Mineralisation depth between 360 ‐500ft ((1
Slide 19: Historic Mineralisation
Av 5ft @ 0.04%eU3O8 Historic Mineralisation For personal use only Av 8ft @ 0.10%eU3O8 Av 15ft @ Av 4ft @ 0 0.12%eU 12%eU3O8 0.04%eU3O8 y All projects contain grades above Av 13ft @ 0.05%eU3O8 realistic cut‐off thresholds of Av 3.5ft @ 0.02% U3O8 for an ISR operation 0 11%eU3O8 0.11%eU Av 6ft @ 0.11%
Slide 20: Historic Mineralisation
Historic For personal use only best 53ft @ best 13ft @ 0.24%eU3O8 best 15ft @ 0 0.22%eU 22%eU3O8 Mineralisation 0.03%eU3O8 best 13ft @ 0.28%eU3O8 y Grades over 0.10% eU3O8 are widespread best 11ft @ 0.09%eU3O8 y Potential P i l for f hi h higher grade d best zones exists 7ft @ N 0.07% y Average thic
Slide 21: Exploration Potential
Exploration xploration For personal use only title being acquired Potential outlined in black y Global Exploration Target Size within and between all p project j areas is 39‐60 million short tons N @ 0.05‐0.07% eU3O8 for 50‐76 million lbs U3O81 y Historic testing supports In‐Situ Recovery process Ge
Slide 22: In-Situ Recovery (Leaching)
In‐Situ 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 p occur from the pprecipitation p of U3O8 out of solution wh
Slide 23: ISR Geology
ISR Geology gy For personal use only U3O8 mineralisation occurs at the interface between oxidized and reduced zones Source: Wyoming Mining Association Classic roll front geology in a sandstone aquifer In situ recovery is relatively simple if key characteristics are present in the deposit yContainmen
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
Development Model For personal use only y To delineate 15m lb U3O8 of Indicated Resource at two project locations y To build a 1.5m 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 permit
Slide 26: Development Model: Initial Production Centres
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 illi short h tons @ 0.05‐0.07% 0 05 0 07% 8-12 million lb U3O8 eU3O8 for 8‐12 million lb U3O8 1 N y Barbe
Slide 27: Development Model: Treatment and Metallurgical Process
Development e e op e Model ode For personal use only Proposed Treatment and Metallurgical Process y Proposed process facility is an ISR resin strip plant central to the well fields producing approx 1 1.5 5 million lb U3O8 per year y Expected grade across the prospects is 0.05‐0.09% U3O8 y Estimated
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 $2.7 $4 million Operating cost $15 $23 million Royalty 6% $4 $6 million Annual well field capital $5.3 $8 million Assumptions
Slide 29: 2008-2009 Work Program
2008‐2009 2008 2009 Work Program For personal use only Work Type yp Timingg 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
Slide 30: Why Invest in Peninsula Minerals?
Wh Invest Why I In I Peninsula P i l Minerals? Mi l? 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 Ext
Slide 31: Projects Location
For personal use only Projects Location y Karoo K uranium i province i is i 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
SSouth th Af Africa i – Strong St Uranium U i For personal use only p Exploration Historyy y Uranium first discovered in 1970 byy 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
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
I f Infrastructure t t 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 mixtur
Slide 35: Geology
For personal use only Geology y U (as uraninite and coffinite) and Mo (molybdenite) are hosted within multi‐sequence sandstone units; U precipitates i it t where h oxidized idi d groundwater d t comes ini contact with reduced water from shale units or organic material within the sandstone y Tabular
Slide 36: Karoo Projects Past Exploration
K Karoo P Projects j t P Pastt EExploration l ti For personal use only y Uranium exploration commenced in 1969, with major companies Union Carbide, Esso and JCI successfully f ll discovering di i uranium i resources up untilil 1982 y Peninsula’s Sites 22, 29 and 45 contain three of these historic U/
Slide 37: Site U and Mo Mineralisation
For personal use only Site 22 U and Mo Mineralisation 4 1 y In I 1979‐1981 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 2 20 drilled 718 14 13 FARM 404 P1 4 00 13 40 13 percussion holes 0 11 80 20 andd iintersected t t dU 1160 and Mo 10 0 20 8 0
Slide 38: Site Mo Mineralisation
Site 22 Mo Mineralisation l For personal use only 1220 1180 y Mo is associated 0 114 with U 120 1120 mineralisation,, but 0 110 0 is often slightly 0 116 above and offset 80 y Intersections 10 >1000ppm Mo are Legend Molybdenum Grades common ppm 0 50 100 500 1000 2000 60 10 >2000 0 125 250 500 Area 2
Slide 39: Karoo Current Exploration
K Karoo C Currentt EExploration l ti 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
Slide 40: Site Radiometric Anomalies – Ground Validation
Site 29 Radiometric Anomalies – Ground Validation ld For personal use only y On gground testingg validates aerial anomalies y Strongly g y anomalous readings at four sites on margins of syncline in centre of project y Historic resource within syncline proves mineralised nature of sandstone dt (2 8k
Slide 41: Site Radiometric Anomalies
Site 22 Radiometric Anomalies For personal use only Existing GT-7 y New Radiometric Strong new uranium resource area (blue) survey detects historic anomalies in areas with no with relatively subtle resource area with ih historic drilling radiometric moderate anomaly signature y exploration target si
Slide 42: 2008 Karoo Work Program
For personal use only 2008 Karoo Work program p g 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 follow up of July–August July August 2008
Slide 43: Why Invest in Peninsula Minerals?
Wh Invest Why I In I Peninsula P i l Minerals? Mi l? 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 Ext
Slide 44: Notes
For personal use only Notes 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
Peninsula Minerals — Investor Presentation (September 2008) on 6ix