BFS is definately Bankable Feasibility Study.This study is a...

BFS is definately Bankable Feasibility Study.

This study is a detailed analysis of a mining project and it builds on the known factual data of the potential operation.

Very simply put it relates to two parts.

Bankable relates mainly to financing and operational expenditure aspects (Capex/Opex ) and the potential return on investment and the feasibility part relates the the actual operation. Both aspects are integrated within the report.

It provides an estimate of around +/- 10-15% of all costs related to the project. The BFS is normally assigned to a competent engineer experienced in the field of expertise required. It is the final study to be undertaken before proceeding to mining.

My guess is that GRD Minproc could be assigned this as they have the expertise required and they are in Perth. Minproc did PDN's Langer and other uranium projects. I am not sure about there expertise with ISR but they have excellent process engineers. If not it may be assigned to a local US firm. But Minproc is my short listed candidate.

To date PEN has a "Preliminary Scoping Study" which is a good start but it is not specific or detailed enough to be used as a BFS. It is enough to excite the hell out of me though. It displays how good Lance actully is, as they only assume 30M/lbs of U3O8. You don't need to be Einstein to see how conservative they have been in the estimates considering Lance will potentially be 70M/lbs (I still think over 100M/lbs).

This was first noted by PEN in the June 2008 Qtrly. Now they are talking very positively about progressing to BFS.

All gets just a wee bit exciting from here on...