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Karoo Region, South Africa

 

Peninsula, through it’s wholly owned subsidiary Tasman Pacific Minerals Limited (Tasman), has a 74% interest in a total of 42 prospecting rights covering 7,800 km² of the main uranium-molybdenum bearing sandstone channels in the Karoo Basin. Completion of the acquisition of some of these prospecting rights is subject to conditions precedent as detailed in the ASX announcement dated 11 December 2012. The residual 26% interest remains with the BEE partners as required by South African law.

In the Eastern Sector, Peninsula has freehold ownership over an area of 322 km² which covers a significant proportion of the reported resource and allows unlimited surface access. Additional surface access rights have also been contracted on a further 153km² until 2021. This area is largely contiguous with the freehold land.

In February 2013 Peninsula commenced drilling along the Ryst Kuil channel in the Eastern Sector of its Karoo Projects which has returned encouraging initial results.

To date Peninsula has completed a total of 67 reverse circulation holes for a total of 2,745 metres at the De Pannen project area (refer below).This drilling has been successful in its objectives of identifying additional areas of mineralisation outside the current resource limits and also in converting existing inferred mineralisation to indicated status.

An extensive review of the geological data is underway in order to improve the geological model, which will add confidence to the resource estimation. The process involves interpretation of the geological units and stratigraphic coding, which will allow for better correlation of the mineralised zones within them. This may be of particular importance in areas of lower density drilling that have been allocated to the Inferred Resource category on the basis of geological confidence.

The results from the drilling program to date are consistent with the historic drilling results and confirm the presence of shallow uranium mineralisation (at depths mostly under 30m from surface). Within the channel system, uranium and molybdenum mineralisation is localised within smaller-scale sedimentary features in the order of 1-2m in thickness and up to several hundred metres in length. The shallow nature of the mineralisation and resources are potentially amenable to open pit mining which would have highly favourable implications for the economics of the planned operations at Karoo.

 

South Africa – Karoo Uranium /Molybdenum Project Area Locations

As well as facilitating the conversion of existing inferred resources to indicated status, step out drilling beyond the historically mineralised zones has returned high grade intersections which are expanding the limits of the known mineralisation.

 

Karoo Projects –De-Pannen Drilling Map showing Location of Significant Results.

In addition to the above, Peninsula is continuing with a down-hole gamma logging program at Ryst Kuil to validate the historic results at the project. As part of the resource delineation process, Peninsula completed a detailed QA/QC study comprising the confirmation of drillhole locations and verification of historic down-hole radiometric logging procedures and results. In total Peninsula has now probed 336 holes in the Ryst Kuil trend area totalling 30,386 metres. The results have been successful in validating the historic data.

 

JORC RESOURCE

On 5 February 2013 Peninsula announced an initial JORC Code-compliant Mineral Resource estimate of 50.1Mlbs eU3O8 at the Karoo Projects. This estimate included an indicated resource of 15.7Mlbs grading 1,020ppm eU3O8 above a cut off of 600ppm eU3O8.

Previous exploration conducted by Esso Minerals Africa (Esso), JCI and Union Carbide at the Karoo Projects in the 1970s included 1.6 million metres of drilling together with trial open-cut and trial decline mining programs. Based on the results of these programs, the previous explorers estimated approximately 99Mlbs U3O8 and 61Mlbs molybdenum (Mo).

Peninsula has focussed on bringing approximately half of this total, for which drilling data is available, to a standard suitable for reporting under the Joint Ore Reserves Committee (JORC Code 2012) guidelines. The remainder, comprising up to 48Mlbs U3O8 in historical estimates, for which drilling data is not available, is being targeted in on-going exploration with the objective of converting as much as possible to JORC Code-compliant resources.

The initial resource estimate, as shown below, is based on a database comprising 7,163 drill holes together with 1,245 additional holes probed or drilled by Peninsula since 2011, including 16 diamond holes and 730 reverse circulation holes.

JORC Code-Compliant Mineral Resource Estimate, Karoo Projects: eU3O8

ClassificationeU3O8 (ppm) cut-offTonnes (millions)eU3O8 (ppm)eU3O8 (million lbs)
Indicated600  6.9 1,020 15.7
 Inferred600 14.8 1,050 34.4
 Total600 21.7 1,040 50.1

 

An ordinary kriged grade estimate was undertaken by independent consultants Optiro Pty Ltd. Mineral Resources have been classified on the basis of confidence in geological and grade data using the drilling density, geological model, modelled grade continuity and conditional bias measures (kriging efficiency). Indicated Mineral Resources have been defined generally in areas of 50m by 50m drill spacing.

Inferred Mineral Resources have been defined in areas of 100 by 100 metre up to 400 by 400 metre drill spacing. A bulk density of 2.67 t/m3, (based on 1,425 representative determinations), was applied to derive the resource tonnage.

The historic and current drilling is distributed over two main areas – the Western and Eastern Sectors (Figure 4) - and includes results for more than 4,000 mineralised intervals. Drill-spacing varies from 100m by 100m to 25m by 25m with the majority of indicated resources drilled at an average spacing of 50m by 50m.The Eastern Sector covers the majority of the reported resources including the Ryst Kuil Channel and Quaggasfontein. The Western Sector encompasses the Maitjieskloof and Slingersfontein resources, together with the majority of the exploration targets.

Total resources by Sector are detailed below.

 Classification  Sector

 eU3O8 (ppm) CUT-OFF

  

Tonnes

(millions)

 eU3O8 (ppm) eU3O8 (million lbs)
  Indicated Eastern 600 6.0 980 13.0
 Western 600 0.9 1,250 2.7
  Inferred Eastern 600 11.2 1,060 26.4
 Western 600 3.6 1,030 8.0
 Total Total 600 21.7 1,040 50.1

Note: Totals may not sum exactly due to rounding

 

Karoo Projects – Exploration Target

The Karoo Projects cover a significant proportion of the Karoo Basin Permian sandstones, which are believed to represent an Exploration Target of between 250 and 350Mlbs U3O8. This Exploration Target, as shown below, is based on the total cumulative prospective strike length of about 200km that occurs within the PR’s, together with the reported U3O8lbs/km along the modelled sections of the Eastern Sector channel sandstones. Further drilling will be required in order to define a resource estimated in accordance with the JORC code and there is no guarantee that a resource will be defined.

Karoo Projects Total Exploration Target

 Exploration Areas  Tonnes (M)  Grade (ppmU3O8)  eU3O8 (Mlbs)
 Range FromTo  FromTo  From To
 Total 126 133 900 1200 250 350

 

BACKGROUND

Peninsula commenced activity in South Africa in 2006 and was awarded prospecting rights by the Department of Mineral Resources over six project areas located in the Western, Northern and Eastern Cape Provinces. These prospecting areas include three historic deposits that were explored by JCI and Union Carbide Exploration Corporation during the late 1970’s and early 1980’s.

The aim of exploration work has been to evaluate historic exploration targets and develop new targets throughout the Karoo. Since commencement of exploration Tasman has completed approximately 31,000 metres of Reverse Circulation and Diamond drilling and geophysically logged an additional 15,000 metres of open historic holes at three prospect areas. The acquisition of ARSA’s assets in South Africa brings an additional 597,000 metres of drilling into the database. Recent work has been undertaken to compile and validate all data from Tasman’s own drilling areas and the new data acquired from ARSA in order to produce a 3D geological model and JORC compliant resource estimate.

Various studies have determined that uranium and molybdenum mineralisation is hosted in fluvial channel sandstone deposits in the western and central parts of the Main Karoo basin within the Adelaide Subgroup and to a much lesser extent, the Molteno and Elliot formations of the Permian-Triassic Beaufort Group (Karoo Supergroup). The occurrences are epigenetic, tabular and sandstone-hosted and the thickest sandstone bodies tend to contain the highest proportion of mineralisation.