It is anticipated that the plant design will be completed by the end of February 2010.
Petrotek Engineering Corporation (Petrotek), a company engaged in technical evaluation, permitting and field operations related to injection projects, has been selected by Peninsula Minerals to provide the feasibility study for disposal wells in the Lance Project area. The feasibility study will evaluate subsurface zones for the disposal of fluids from ISR mining and restoration. The PFS, when combined with optimization studies, metallurgical studies, hydrological studies and mine permitting studies, being conducted in parallel, will form the basis for the full feasibility study which is now scheduled to be completed by early 2011.
In addition, Peninsula Minerals has reported that the Monitor Well Installation Program at Lance has commenced. Well design and positioning for the base line and production monitoring of the aquifer has been completed and the first monitor well cluster was drilled on November 17, 2009.
Finally, the company has been further buoyed by positive feedback received during October and November 2009 from the Nuclear Regulatory Commission (NRC) regarding the potential to reduce the timing of the mine permitting approval process. Executive Chairman Gus Simpson said “Over the last three years Peninsula has assembled a first class uranium team who has worked tirelessly to advance these projects on all fronts and the board is very pleased with the progress”.
Plant Design and Pre-Feasibility Study commences
Lyntek has been appointed to design an ISR uranium processing plant that is capable of processing up to 3 million pounds of U3O8 per annum. The design process involves a detailed review of the uranium deposit characteristics at Lance, the layout of the production well fields, the metallurgy of the uranium, reports on pilot tests, disequilibrium conclusions, plant siteing issues and all other concerns that will affect the design of the plant and permitting process. Lyntek expect that the plant design should be completed by the end of February 2010.
Peninsula Minerals will secure the services of Lyntek who will also provide various engineering and design services to the Company during the feasibility process. Based in Colorado, Lyntek provide services globally ranging from process engineering and feasibility studies through to detailed engineering, procurement, construction management, plant startup and pilot plants. Lyntek is highly experienced in the uranium industry having been involved in the sector since 1983, and has vast knowledge of mining operations in Western USA. Current and past clients include Ur-Energy Inc, Cogema, Heathgate Minerals Inc, Power Resources Inc (a division of Cameco), Sumitomo Uranium and also Wyoming based High Plains Uranium Inc.
Petrotek will complete the injection well feasibility study by February 2010. The feasibility study will assess injection zones in the Lance Project area below the Cretaceous Pierre Shale, Cody Shale, Bearpaw Formation, and the Deadwood/Flathead equivalent. Petrotek has completed numerous disposal well and related groundwater projects for ISR operators over the past 15 years, including such clients as Crow Butte Resources Inc, Energy Metals/Uranium One, Power Resources Inc, Cogema, URI/HRI and Ur-Energy. Petrotek will also provide permitting services and assist with public relations and NRC/WDEQ coordination.
Monitor Well Installation Program
Well design and positioning for the base line and production monitoring of the aquifer was completed in October and the first monitor well cluster was drilled on November 17, 2009.
The monitor well program consists of the installation of wells in six locations spread over the Ross Project area (Ross) at Lance to provide maximum characterisation. At each of the six locations, wells will develop water quality and quantity characteristics below the ore zone, at the ore zone, and at two locations above the ore zone for a total of 24 wells. The average cased depth using the first rig will be about 350 feet, whilst the average completed well installation and development using the second rig will be 50 feet.
The monitor well program is extremely important as it provides the baseline data components that the NRC/WDEQ require as part of the mine permitting and feasibility process at Lance. The wells will be used to develop potentiometric surface maps to define affected aquifers and determine regional groundwater quality. Aquifer pumping tests will be conducted to define aquifer properties within the affected area, hydrologic boundary conditions, directional permeabilities and vertical confinement. This new information will be meshed with the existing data base that Peninsula Minerals holds from the previous mining operation at Ross.
