Peninsula signs uranium sales agreement

16 February 2011

Following swiftly on the heels of the recent announcement of an expanded resource base at its Lance uranium projects in Wyoming, USA, Peninsula energy has entered into a sales agreement to supply 1.15 million pounds of U3O8 (442 tonnes U) to "one of the largest producers of energy in the US." The terms of the contract specify an "escalated fixed price" for the supply of a "fixed quantity and term." The weighted average price is said to be consistent with the average term price used in the project's pre-feasibility study. In a statement made in July 2010, Peninsula predicted "life of mine average C1 Cash operating costs of $14 per pound U3O8", and a net present value after tax of $162 million. Peninsula recently announced an upgrade to the resource at the Lance projects, with some 33 million pounds of U3O8 (12,600 tonnes U) now identified. Last month, Peninsula submitted an application to the Wyoming Department of Environmental Quality for a permit to construct and operate an in-situ leach (ISL) facility, which is currently scheduled to start operating in 2012.

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