AMN - SOUTH AFRICA: Peninsula funding to progress Karoo PFS

Peninsula Energy has entered into a subscription agreement with Concentrate Capital Partners Ltd (CCP). CCP has subscribed for shares for gross proceeds of A$781,357 to progress the Prefeasibility Study (PFS) for the Karoo projects.

The PFS for the Karoo projects will incorporate:

-          Results from independent metallurgical test work completed during 2014-2016

-          Additional metallurgical testing to confirm the process design

-          Updated mine design and layout

-          Specification of infrastructure requirements directly associated with the mine

-          Capital and operating cost estimates.

This agreement also contains an option for CCP to fund post-PFS activities using the same mechanism. Post-PFS activities include the Bankable Feasibility Study, reserve drilling and other related activities.

The PFS follows a preliminary technical and economic assessment concluded by DRA in late 2013 and additional metallurgical test work conducted during 2014-2016.

The current metallurgical testing is primarily aimed at establishing the economic benefits of carbonate removal ahead of leaching along with confirmatory hydrometallurgical test work. Pending the outcome of this test work phase, the PFS process design will consider the incorporation of a carbonate rejection step ahead of leaching to optimise the process flow sheet and minimise operating costs.

The PFS will also include preliminary mine design and layout (both open pit and underground), all engineering works associated with the proposed mine, plant tailings storage facility and in-plant infrastructure.

Peninsula Energy managing director and CEO John Simpson says: “The company is confident this work will provide us with clear parameters for the future development at the Karoo projects.”

Peninsula has a 74% interest in a total of 40 prospecting rights (PRs) covering 7800sqkm of the main uranium-molybdenum bearing sandstone channels in the KarooBasin (Karoo projects).

www.pel.net.au

News courtesy of International Mining