re: Ann: Feasibility Process Underway at Lanc... Here it is:23...

re: Ann: Feasibility Process Underway at Lanc... Here it is:


23 November 2009
Companies Announcement Of f ice
Via Elect ronic Lodgement

FEASIBILITY PROCESS UNDERWAY AT LANCE PROJECTS
Highlights
• Pre-Feasibility Study Underway
• Commencement of Plant Design
• Mine Monitor Well drilling commenced
• Peninsula on track to meet 2010 JORC Targets
• Positive feedback on Mine and Plant permitting

Summary

Peninsula Minerals Limited (Peninsula) is pleased to announce that it has made significant
progress in the mine planning and development process at the Lance Projects in Wyoming,
USA (Lance) and is now at a stage where detailed plant design can commence.
Global mining engineers and uranium specialists Lyntek Inc (Lyntek) have been appointed by
Peninsula to design an In-Situ Recovery (ISR) uranium processing plant that is capable of
processing up to 3 million pounds of U3O8 per annum. It is anticipated that the plant design will
be completed by the end of February 2010.
Petrotek Engineering Corporation (Petrotek), a company specialising in technical evaluation,
permitting and field operations related to injection projects, has been selected by Peninsula to
provide the feasibility study for disposal wells in the Lance Project area. The feasibility study will
evaluate subsurface zones for the disposal of fluids from ISR mining and restoration.
The PFS, when combined with optimization studies, metallurgical studies, hydrological studies
and mine permitting studies, being conducted in parallel, will form the basis for the full
feasibility study which is now scheduled to be completed by early 2011.
In addition, Peninsula is pleased to report that the Monitor Well Installation Program at Lance
has commenced. Well design and positioning for the base line and production monitoring of
the aquifer has been completed and the first monitor well cluster was drilled on 17 November
2009.
Peninsula can also report that the ongoing interpretation of the results from the current drill
program coupled with the inclusion of previously unreported mineralised holes has increased
it’s confidence in achieving its June 2010 JORC targets.
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Finally, the Company has been further buoyed by positive feedback received during
October and November from the Nuclear Regulatory Commission (NRC) regarding the
potential to reduce the timing of the mine permitting approval process.
Executive Chairman Gus Simpson said “Over the last three years Peninsula has assembled
a first class uranium team who has worked tirelessly to advance these projects on all fronts and
the board is very pleased with the progress”.
Plant Design and Pre-Feasibility Study commences
Lyntek has been appointed to design an ISR uranium processing plant that is capable of
processing up to 3 million pounds of U3O8 per annum. The design process involves a detailed
review of the uranium deposit characteristics at Lance, the layout of the production well fields,
the metallurgy of the uranium, reports on pilot tests, disequilibrium conclusions, plant siteing
issues and all other concerns that will affect the design of the plant and permitting process.
Lyntek expect that the plant design should be completed by the end of February 2010.
Peninsula is particularly pleased to secure the services of Lyntek who will also provide various
engineering and design services to the Company during the feasibility process. Based in
Colorado, Lyntek provide services globally ranging from process engineering and feasibility
studies through to detailed engineering, procurement, construction management, plant startup
and pilot plants. Lyntek is highly experienced in the uranium industry having been involved
in the sector since 1983, and has vast knowledge of mining operations in Western USA. Current
and past clients include Ur-Energy Inc, Cogema, Heathgate Minerals Inc, Power Resources Inc
(a division of Cameco), Sumitomo Uranium and also Wyoming based High Plains Uranium Inc.
Petrotek will complete the injection well feasibility study by February 2010. The feasibility study
will assess injection zones in the Lance Project area below the Cretaceous Pierre Shale, Cody
Shale, Bearpaw Formation, and the Deadwood/Flathead equivalent. Petrotek has completed
numerous disposal well and related groundwater projects for ISR operators over the past 15
years, including such clients as Crow Butte Resources Inc, Energy Metals/Uranium One, Power
Resources Inc, Cogema, URI/HRI and Ur-Energy. Petrotek will also provide permitting services
and assist with public relations and NRC/WDEQ coordination.
Monitor Well Installation Program
Well design and positioning for the base line and production monitoring of the aquifer was
completed in October and the first monitor well cluster was drilled on 17 November 2009.
The monitor well program consists of the installation of wells in six locations spread over the Ross
Project area (Ross) at Lance to provide maximum characterisation. At each of the six
locations, wells will develop water quality and quantity characteristics below the ore zone, at
the ore zone, and at two locations above the ore zone for a total of 24 wells. The average
cased depth using the first rig will be approximately 350 feet, whilst the average completed
well installation and development using the second rig will be 50 feet.
The monitor well program is extremely important as it provides the baseline data components
that the NRC/WDEQ require as part of the mine permitting and feasibility process at Lance. The
wells will be used to develop potentiometric surface maps to define affected aquifers and
determine regional groundwater quality. Aquifer pumping tests will be conducted to define
aquifer properties within the affected area, hydrologic boundary conditions, directional
permeabilities and vertical confinement. This new information will be meshed with the existing
data base that Peninsula holds from the previous mining operation at Ross.
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2010 JORC Targets
Processing of the data contained within the recently acquired Nubeth database has added
further mineralised holes (previously unreported) to the uranium mineral inventory at both Ross
and Barber. Both the current drill results and the inclusion of these “new” holes are providing
additional confidence that Peninsula’s initial JORC targets will be met by June 2010.
In addition, the quality and quantity of the Nubeth database information indicate that the
extent of drilling required to meet these JORC targets will be significantly reduced, with
expected timing and cost saving implications for Peninsula.
Positive Feedback from NRC on permitting process
During October Peninsula met with the Wyoming Congressional Delegation and also the NRC
in Washington DC to discuss and present the Lance Projects. The meetings were very positive
and discussions with the NRC suggested that Peninsula’s unique process of continuous
submission should auger well for the turnaround time of its mine and plant permitting process.
While contingent on a number of factors, the feedback received from the NRC has given
Peninsula confidence that permits can be granted on or even ahead of the current schedule.