Peninsula Energy Discovers High Grade Uranium and Molybdenum

Published on Thursday May 12 2011 (AEST)-Australia

Peninsula Energy (ASX: PEN) continues to expand the company's uranium and molybdenum exposure across several continents, with the latest high grade hits coming from Site 22 in the Karoo project, in South Africa.

Highlights from the latest round of reverse circulation drilling include:

- 2 metres at 3,625 parts per million (ppm) U3O8 and 2,560ppm molybdenum from 21 metres;

- 2 metres at 3,102ppm U3O8 and 2,549ppm molybdenum from 10 metres; and

- 0.5 metres at 8,420ppm U3O8 from 9 metres.

The holes sampled to date are located in the western portion of the historic drilling area, with assay results from 38 holes received with the results confirming a widespread distribution of molybdenum in association with uranium.

Peninsula said due to the positive correlation and grade of the associated Molybdenum Peninsula is extending the reverse circulation drilling program to encompass the entire historic drilling area.

These results suggest there is potential to delineate a significant level of molybdenum with very favourable implications for the economics of the project.

Across Peninsula's Karoo projects, exploration potential remains as in addition to the existing resource drilling, ten high ranking drill targets distributed across all six of the company’s project areas have been prioritised from the 392 uranium occurrences generated by the 2008 helicopter-borne radiometric and magnetic surveys.

This process has included site mapping, ground sampling and aerial extent studies of the project areas conducted by Peninsula over the last 3 years.

The Karoo region is highly prospective and is located around 400 kilometres from Cape Town, with the Karoo Basin known as a uranium and molybdenum mineralised province, and is host to several historically defined ore bodies.

These include Ryst Kuil containing around 40 million pounds of U3O8, and Riet Kuil reported to contain around 10 million pounds of U3O8.

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