jorc, page-9

Although we have speculated previously on the cost of the historical drilling, this indicates the potential current cost (value to PEN) may be much higher than the estimated $US60m.

The pilot plant operated in the 1970's, the drilling was carried out over an eight year period prior to that. So the $15m was in the 60's, not the 70's as previously thought. This drill program cost US$15m then, what would that cost now?

Also some other information below that clearly displays what we are sitting on folks. In addition there is the statement relating to the delay of the drilling conducted in Sept 2008 that was supposed to be May 2008. Note it only took one month for the results, so PEN' estimated time of the June qtr 2009 (Qtr 2 2009, don't confuse this date ok) for Jorc is conservative and could very well be earlier.

Note the estimated 7c per share profit estimate below on Lance alone. I will leave you all to speculate on Hartleys very conservative ~8c estimate for the whole of Karoo and Lance ;)

"NEW FRONTIERS URANIUM CO. continues to remain confident in the future of uranium. NUBETH data-base digestion of the original $15 million drilling package of 5000 holes continues and may require the resources of a joint venture partner."
source: http://rockymountainscout.com/ermsjulB.htm

"PEN announced a revised exploration target at its Lance project in Wyoming, on 7/7/08, after a review by independent consultants World Industrial Minerals (WMO). The new figure is 22,000-31,000t U3O8 at grades of 500-700ppm. WMOʼs work correlated mineralised sands and construction of mineralisation outlines over 13 project areas defined by historical drilling.

Drilling is planned to commence in September to convert historic mineralisation to JORC status. This is later than the earlier advised May date, due the time it took to secure key ground positions. The acquisitions, announced in May, cover the site of the earlier NuBeth ISL pilot plant and ground where 329 historical holes had intersected mineralisation in vertically stacked roll fronts.

Nuclear Dynamics and Bethlehem Steel previously discovered an extensive system of more than 20 mineralised roll-fronts, drilling more than 5,000 holes over an eight-year period, for a total of 912,000m. The roll-fronts are frequently stacked with up to seven in one location.

According to historical information, one deposit is 700m x 600m and 3m thick. Another is 1,300m x 150m and 2m thick. Both show excellent continuity. Intersections of 1,000 to 2,000 ppm are not uncommon. The average grade was 700 ppm. Depths are generally 120-150m. The NuBeth JV initiated an ISL project in 1970 but it wasnʼt scaled up to full production due to low uranium prices. The ground has sat dormant since then.

It would not be unreasonable to expect a recoverable resource of 10,000 t U3O8, but this needs further work before a JORC resource can be calculated. (PEN says its target is 18,000-27,000t U3O8, at 500-800 ppm). Something this size could support a 750,000 tpa operation that might involve capital expenditure in year one of US$70m, with annual increments of $8m. The operating cost of an ISL operation might be US$22/lb based on a head grade of 500ppm. An operation of this size could earn significant profits, generating cash flow of $86m at current uranium prices, or better than 7¢ a share, placing them on a cash generation multiple of 0.4x."
source:
Uranium
The Sustainable Phase of the Uranium Bull Market, page 22, Peninsula Minerals

Also I posted this previously, but for the doubting Thomas' out there this confirms what I previously posted regarding the exact location of the Nubeth pilot plant...i.e. Exactly where PEN are planning on placing the new processing plant.

Nubeth Joint Venture Mine
Latitude: 44.505001 Longitude: -104.704437



Have a great day, I am off to makan siang (lunch) ;)
Dhuy