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PEN peninsula energy limited

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ura_bull

7,245 Posts.

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03/03/21

19:04

Post #: 51494752
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Originally posted by makeamillion1 ↑

Investor reaction was very interesting on Monday and IMO way oversold reaction to the Field Demonstration Update.

My personal observation was there was nothing wrong with this report in particular the following paragraph:

"Dilute acid solutions are used to decompose naturally occurring carbonate minerals and the bicarbonate contained in the local groundwater system to achievean operating pH of approximately 2.0S.U. in the system, from a baseline pH of approximately 8.0 S.U.The volume of acid required is primarily a function of the ore body constituents and has been estimated in the 2018 Feasibility Study from the results of laboratory tests completed under ideal conditions. To date, the field demonstration has exhibited a trend toward consuming more acid than was modelled from the laboratory results and subsequently projectedin the 2018 Feasibility Study. While one of the demonstration patterns has arrived at the target pH of 2.0 S.U., itis taking more time than expected for the other two patterns to reach the recovery pH target. At present the two lagging patterns are yieldinga recovery pH of approximately 4.0 S.U. not withstanding having sustained the objective flow ratesand acid concentrations in the injection stream. The Company will continue to closely monitor the progression of the system pH and will assess opportunities to optimise the process design at the completion of the field demonstration"

The company has already proved in their initial Well achieving the required target recovery pH of 2.0 from an initial level of pH 8.0.
Clearly in this period of care and maintenance and until an investment decision is made (which like other miners is dependant on LT and Spot price of U308) the company is looking to optimise the recovery process. The company has said nothing about any change in this 6 month time required to re-start following an investment decision.

I was very pleased to buy yet more stock on Monday.

What PEN is perfecting here is a tried and tested and widely used method of recovery. The field demonstration update merely has said that from a baseline of pH 8 using gaseous oxygen lowered the pH from 8 to pH 4. So the company is adding Nitrogen Peroxide to lower it further to the target of pH 2. This is IMO just a chemistry decision and the Uranium still lies in the ground awaiting the optimum chemical conditions to increase recovery and lower the cost of production.

IMO opinion nothing has changed this is a proven and licensed resource, one of only 3 USA miners ready to continue mining within 6 months of an investment decision. The next few months while the company like others await for the inevitable rise in LT / Spot Uranium prices to rise they are looking to maximise recovery rates. Unlike many Uranium miners PEN has LT contracts until 2030, no DEBT and licensed to produce.

DYOR I am buying

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One titbit I've remembered from the face-to-face I attended with Wayne was that they used worst case scenario costs for the acid, assuming it will need to be shipped in when the likelihood is they'll be able to source it locally at much better prices.

Last edited by ura_bull: 03/03/21

PEN Price at posting: 11.5¢ Sentiment: Buy Disclosure: Held
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