pen - qrtly ann

Following is from the first 3 pages of Qrtly

31 October 2011
Australian Stock Exchange Limited (ASX)
Company Announcements Platform Via e-lodgement
30 SEPTEMBER 2011
QUARTERLY ACTIVITIES REPORT
HIGHLIGHTS
WYOMING, USA - LANCE URANIUM PROJECTS
? Expanded Definitive Feasibility Study Near Completion
? Permitting Advances on Schedule:
? Air Quality Permit Received
? High-grade Drill Results continue
SOUTH AFRICA – URANIUM / MOLYBDENUM EXPLORATION
? Analysis of diamond core samples confirm strong correlation of high-grade U3O8 and
Molybdenum at Site 22
? Core samples provide QAQC with strong correlation between assay and gamma results
? Important milestone achieved – confirmation of historic resource drilling results
? On-going work programs aimed at providing sufficient information to declare future
JORC-compliant resource
? Exploration set to commence at highly prospective Site 45
CORPORATE
? Cash at 30 September 2011 $23.6m
Peninsula Energy Limited
September 2011 – Quarterly Activities Report

Page 2

WYOMING, USA – LANCE PROJECTS
(Peninsula Energy 100%)
Figure 1: Lance Projects location, Wyoming USA
DFS Update
On 12 September 2011 Peninsula announced that the Definitive Feasibility Study (DFS), completed on the Ross
Permit Area and Ross Amendment Area, was being expanded to encompass the Lance Project area. Peninsula
expects that this will maximise the operational capacity over the project life and present a more relevant assessment of
the economic potential.
In conjunction with this work Peninsula is conducting an owners review of the major cost items and optimising the
wellfield design. This work is near completion and Peninsula expects to release the results shortly.
Air Quality Permit Received for Ross ISR Project
On 28 September 2011 Peninsula announced that the Division of Air Quality of the Wyoming Department of
Environmental Quality (WDEQ/AQD) had completed their final review of wholly owned subsidiary Strata Energy Inc’s
(Strata) application to construct the Ross ISR Project, which will utilise the in-situ recovery method to extract uranium
and produce up to a maximum of three (3) million pounds per year of yellowcake (U3O8).
On expiration of the 30 day public comment period, with no comments received and on the basis of the information
provided to the WDEQ/AQD, Strata was granted an Air Quality Permit in accordance with Chapter 6, Section 2 of the
regulations.
The issuance of the Air Quality Permit follows a detailed technical review by the WDEQ/AQD of more than a year of
baseline air quality monitoring, modelling and data analysis by Strata.
Peninsula Energy Limited
September 2011 – Quarterly Activities Report

Page 3

Drilling Programme
Drilling – July to September 2011
During the September quarter Peninsula completed a further 272 development drillholes for a total of 168,710 feet at
the Lance Project. The majority of the recent drilling has been located to the west and north of the Permit Area within
the following areas:
Resource Area 05
Resource Area 07 (Berger Hill)
Emerson Resource Area
This drilling has identified multiple new occurrences of stacked roll front mineralisation in previously sparsely drilled
areas. The drilling has located broad intervals of vertically stacked mineralisation. Previous metallurgical work has
demonstrated high recoveries in zones of this nature and further drilling continues to determine the extent of these
newly identified mineralised systems.
Of the 272 drill holes completed during the quarter, a total of 25 holes encountered mineralisation greater than 0.2GT.
A total of 33 holes recorded multiple stacked intersections of uranium mineralisation. Many of these new intersections
occur within the C-horizon sandstone of the Lance Formation which is developed above the main A and B ore-bearing
horizons of the Lower Fox Hills Formation. The new results highlight the potential for additional mineralisation within
the C-horizon sandstones. On-going drilling is designed to extend this mineralisation to the west and south within the
C-horizon sandstone together with further testing of the roll fronts located in the underlying main A and B horizons.
Resource Area 05
A total of 93 holes were drilled at Area 05 during the current program, of which 5 holes recorded intersections in
excess of 0.2 GT.
The highlights of the drilling during the quarter were drillhole RMR1415 which intersected 39ft @ 436ppm eU3O8 (GT
1.70) including a peak intersection of 9.5ft @ 890ppm eU3O8. A follow-up hole RMR1431, which is located 85m (280ft)
southwest from RMR1415, intersected 7ft @ 820ppm eU3O8 demonstrating the continuation of strong mineralisation in this
roll front system. Additional results from this area include RMRD0024 which intersected 28ft @ 353ppm eU3O8 (GT
0.99), drillhole RMR1339 which intersected 23.5ft @ 390ppm eU3O8 (GT 0.92) and drillhole RMR1270 which
intersected 5.5ft @ 1,080ppm eU3O8 (GT 0.60) (refer Figure 2).
Emerson Resource Area
At the Emerson Prospect a total of 11 holes recorded intersections in excess of 0.2 GT. The best intercept at Emerson
was hole RMR1270 which intersected 5.5 ft @ 1,080ppm eU3O8 (GT 0.60) from 253.25ft to 258.75ft. This intersection
is also located within the Lower Lance Formation, which further highlights the prospectivity of the C and D mineralised
horizons.
Resource Area 07 (Berger Hill)
From a total of 55 holes, nine holes recorded intersections in excess of 0.2 GT. The highlight of the drilling at Berger
Hill was hole RMR1325 which intersected 7.5 ft @ 650ppm eU3O8 (GT 0.49) from 423.75ft to 431.25ft. The drilling,
along a north-south trending roll front, was successful in converting areas of inferred mineralization to indicated and
measured status, and in delineating additional areas of ore within stacked roll fronts within the A, B and C horizons
associated with the mineralized trend.