PEN - Peninsula Energy

[z-trader]

Re: RCR Uranium Sector Research_ Peninsula Minerals

Thanks Z Trader for the encouragement

Even if the share dips down 4 cents how the free option to be valued.

Selfishly I wish your thoughts to be right and I want to step in to buy PEN when it dips below 4 cents .

But I will wait and see before getting too excited as I said 90% time my speculation failed

Unbang head! Already half way there. The price action today clearly demonstrates the problem of confidence in the absense of reason.

IMO, a rational an unbiased appraisal of recent research reports covering PEN and Uranium market, as well as the cap raising should have led to the conclusion that PEN may fall in the short term, and it has. So then the question you have to ask is what was the intention of those who failed to address the possibility and were instead shouting from the rooftops that everything is going great? Did they have your interests at heart or did they have their own interests at heart?

z-trader

 

[hangseng]

Re: RCR Uranium Sector Research_ Peninsula Minerals

Thanks Z Trader for the encouragement

Even if the share dips down 4 cents how the free option to be valued.

Selfishly I wish your thoughts to be right and I want to step in to buy PEN when it dips below 4 cents .

But I will wait and see before getting too excited as I said 90% time my speculation failed

With the support that came in today at 4.5c I think you will be extremely lucky if you achieved 4c Miner. Good luck if it occurs, however the trading today did nothing to shatter my confidence in PEN or the recent decisions they have made.

Many doomsayers were predicting a major sell off today and it quite simply didn't occur and never looked like occurring.

A quick look at the chart was interesting. All that has occurred is the closing of the continuation gap at 4.5. Strong support is indicated here now IMO.

Today displayed strong support in favour of the CR IMO. Despite the sellers that thinned dramatically throughout the day, buyers just kept coming in at 4.5c.

I await my rights issue offer from PEN.

 

[z-trader]

Re: RCR Uranium Sector Research_ Peninsula Minerals

With the support that came in today at 4.5c I think you will be extremely lucky if you achieved 4c Miner. Good luck if it occurs, however the trading today did nothing to shatter my confidence in PEN or the recent decisions they have made.

Many doomsayers were predicting a major sell off today and it quite simply didn't occur and never looked like occurring.

A quick look at the chart was interesting. All that has occurred is the closing of the continuation gap at 4.5. Strong support is indicated here now IMO.

Today displayed strong support in favour of the CR IMO. Despite the sellers that thinned dramatically throughout the day, buyers just kept coming in at 4.5c.

I await my rights issue offer from PEN.

PEN recently traded at 4.3 cents. Low volume, but it shows that "buyers just kept coming in at 4.5c" observations and "quick looks" at charts don't have a lot of predictive power. Not past the moment they're written anyway.

z-trader

 

[z-trader]

Re: RCR Uranium Sector Research_ Peninsula Minerals

PEN recently traded at 4.3 cents. Low volume, but it shows that "buyers just kept coming in at 4.5c" observations and "quick looks" at charts don't have a lot of predictive power. Not past the moment they're written anyway.

z-trader

Why don't commentators on this stock write on days when the share price falls? Why don't commentators point out news that negatively impacts the Uranium market? ie Obama's pledge to drastically reduce US nuclear warheads.

z-trader

 

[hangseng]

Re: PEN - Peninsula Minerals

Well PEN came close for you this week Miner but I see it it has come back to 4.5 again today. Possibly a watershed period for PEN coming up and it remains to be seen if your target will get hit.

All I want is my additional shares under the rights issue and the free options to add to my holdings. The daily happenings from now until production are of little consequence to me, however it will be an exciting time I am sure and has been a long time coming.

Love to know who the overseas investment company is that took up the rights issue and what their longer term plans are.

 

[Miner]

Re: PEN - Peninsula Minerals

Well PEN came close for you this week Miner but I see it it has come back to 4.5 again today. Possibly a watershed period for PEN coming up and it remains to be seen if your target will get hit.

All I want is my additional shares under the rights issue and the free options to add to my holdings. The daily happenings from now until production are of little consequence to me, however it will be an exciting time I am sure and has been a long time coming.

Love to know who the overseas investment company is that took up the rights issue and what their longer term plans are.

Very quickly thanks Hangseng for your thoughts remembering me.

I was a bit lucky to get a small parcel bought when I put a buy and almost forgot about it. Now I am a PEN holder but without the same rights or Option you or others may have

No regret or no jealousy from me. It is part of game

I am off to Kalbaari tomorrow morning for 4 days so it is almost 99% that I will be absent in ASF until Monday night.

Wishing you and all the ASF readers a Happy Easter

Regards

 

[hangseng]

Re: PEN - Peninsula Minerals

How did Kalbarri go Miner, are you a keen fisher or just enjoy the location? I am both and no better playground than Kalbarri, at the right times.

Well moving closer to the long awaited Jorc announcement and along with it now the final outcome of the cap raising. So many announcements to come out between now and when production commences, it keeps things interesting.

Good day in the paddock for PEN today. Still not very high volumes but also not the sell off some expected to occur, it fact the opposite today.

Hope you enjoyed your break, we don't get 4 days break for easter here. Being a majority Muslim country, just a token 'Good Friday' for the small number of Christians here. At least it was a break away from the desk for a while.

Cheers
HS

 

[Miner]

Re: PEN - Peninsula Minerals

How did Kalbarri go Miner, are you a keen fisher or just enjoy the location? I am both and no better playground than Kalbarri, at the right times.

Well moving closer to the long awaited Jorc announcement and along with it now the final outcome of the cap raising. So many announcements to come out between now and when production commences, it keeps things interesting.

Good day in the paddock for PEN today. Still not very high volumes but also not the sell off some expected to occur, it fact the opposite today.

Hope you enjoyed your break, we don't get 4 days break for easter here. Being a majority Muslim country, just a token 'Good Friday' for the small number of Christians here. At least it was a break away from the desk for a while.

Cheers
HS

Hi HangSeng

We just returned to Earth (Perth) from Heaven (Kalbaari) .

We all enjoyed Kalbaari - the place, the people, the hotel (Kalbaari.edgeresort.com.au) facilities and staff - a lot of fishing (less drink this time surprisingly) and real relaxing. The price of food is almost same of Perth Supermarket. I could not believe. Our 10 yrs daughter insisted that why this holiday was so short and that tells how we have enjoyed it. Sorry other folks for:topic

I will post some photos in my facebook this week before flying to Brisy for couple of days (will miss ASF and ASX as well).

I will keenly follow the upside (hopefully) on JORC when it arrives.

I bought and sold PEN earlier but this time I am trying to have patience for a good outcome

Thanks for remembering me.

 

[Miner]

Re: PEN - Peninsula Minerals

Cheque or the offer document is in the mail.

Thought to post in the forum for some one's weekend reading.
Good luck to PEN holders (including me - thaks to Hangseng's persistence for me to return to this scrip).

 

[hangseng]

Re: PEN - Peninsula Minerals

Cheque or the offer document is in the mail.

Thought to post in the forum for some one's weekend reading.
Good luck to PEN holders (including me - thaks to Hangseng's persistence for me to return to this scrip).

Good morning Miner, been away on a short R&R and just back to see the Jorc announcement now out. Still a way to go but PEN is pushing ahead better than expected.

I have already applied for mine via Bpay as has my son. I have also requested to be considered should any shortfall eventuate. I say "should" as this won't be known until the offer closes on the 23rd April. Also as these get get placed at the discretion of the board it is possible that any shortfall may be placed with the new European investment fund that took up the placement.

Time will tell and I have the funds waiting, for now I am very pleased the way PEN is advancing Lance. I will be even more pleased when they announce permit approval and mine construction.

So much to look forward to and PEN is not far away from the planned production timeline.

Have a great day
HS

 

[Miner]

Re: PEN - Peninsula Minerals

Good morning Miner, been away on a short R&R and just back to see the Jorc announcement now out. Still a way to go but PEN is pushing ahead better than expected.

I have already applied for mine via Bpay as has my son. I have also requested to be considered should any shortfall eventuate. I say "should" as this won't be known until the offer closes on the 23rd April. Also as these get get placed at the discretion of the board it is possible that any shortfall may be placed with the new European investment fund that took up the placement.

Time will tell and I have the funds waiting, for now I am very pleased the way PEN is advancing Lance. I will be even more pleased when they announce permit approval and mine construction.

So much to look forward to and PEN is not far away from the planned production timeline.

Have a great day
HS

Hey HS

Welcome back.

It appears there are not many people interested to talk about PEN now.

There should be non believers and I welcome their views as well to get best out of the thread.

I did not visit ASF almost for a week as I was busy in saving some good money for my client by attending a one week workshop with them.

I am holding PEN and watching to see more market reaction once the rights are closed.

 

[hangseng]

Re: PEN - Peninsula Minerals

Yes Miner it will once again be interesting to see what occurs post CR. Not really fussed though, I am focussed on late 2011 - early 2012.

As usual with PEN short term interest will return along with volume and increase in SP. The real rewards will come though after the same people have left the room IMO.

If PEN achieves all that is planned in the next 18-24months, what are the chances of the sp remaining at 4.3c? I would suggest buckleys to none, wouldn't you think?.

It will be welcomed to see the sp finally rise though.

For now I am very interested to see what happens with the CR and to any shortfall should the retail offer not be taken up in full. I wonder also how many are sitting in the wings in the hope the sp will drop below the CR price of 4c? I for one think it won't but if it did it would be another great opportunity IMO.

Hope your break went well Miner. I just had one but would love another

 

[hangseng]

Re: PEN - Peninsula Minerals

Well the CR is done and dusted and regardless of a shortfall that has now been taken up in full. I happily shared in the shortfall as well for additional shares to my CR allocation.

On another subject...

I have posted previously of the value of Moly and it's specialist uses in the oil & gas field. This is one I have never spoken about but look who is into it in a big way already.

The demand for moly and uranium will be huge on the back of the world change to nuclear power. PEN has both with very high grades indicated at Karoo.

If you are into either Moly or uranium I highly recommend you sign up for this website. It is free and regularly they put out information from around the world. I also recommend you sign up for World Nuclear News http://www.world-nuclear-news.org/ again free and anyone seriously following uranium and nuclear energy should sign up for WNN at least.


China Stockpiling Moly for Nuclear Plant Construction?
2010-04-27
Chinas stockpiling of molybdenum, now 30 percent of the worlds total inventory, may be attributable to their nuclear energy build up. Massive amounts of moly are needed for the highly specialized tubing needed for the reactors. These factors, as well as the rapid urbanization of China and India, and the modernization of the two powers, will be the driving influences for moly in the future.
Read more...

"The Chinese control 97 percent of the world manganese supplies, and are trying to secure dominance over almost all other metals. The answer to the question of why China is so aggressively pursuing such market dominance is vital to understanding market dynamics, and what are the best companies in which to invest."

But one factor that is rarely brought up is the increasing role of nuclear reactors in the global energy crisis. The reactors need extremely high quality steel tubing to deal with the unique aspects of this form of energy production. As a result of the growing trend towards nuclear power, the importance of moly has never been greater.

Nuclear power utilities, for example, rely on super-resistant moly alloys to replace the worlds aging reactor condenser tubes. Each new reactor will need at least 400,000 pounds of the stuff. Around 100 new reactors are scheduled for construction in China over the next few years. America, meanwhile, is hoping to build twice that many, reported Gleesen


Full article:
http://molyinvestingnews.com/2113-china-stockpiling-moly-for-nuclear-plant-construction.html


"Be greedy when others are fearful... and fearful when others are greedy" Warren Buffet

 

[hangseng]

Re: PEN - Peninsula Minerals

And down we went.......people really love CR's don't they and I only have one piece of advice for me that I continue to follow:

""Be greedy when others are fearful... and fearful when others are greedy" Warren Buffet"

Suffice to say, for me this is an opportunity of a lifetime. Only because I have followed this company for so long and can foresee a positive outcome now in the not to distant future. 2012 to be exact.

I won't say anymore just now on what I think of PEN or the latest additional positive announcement on drill results (again...very consistent this aspect). However I will have a dabble at my other pastime interest being charts.

I am an amateur in the extreme with charting but it is fascinating how on the odd occasion it actually occurs technically as it is supposed to.

"TECHNICAL TOOLBOX: Getting An Edge With the Wedge "
http://www.optionetics.com/market/articles/6018

Lets see what "Edwards and Magee" say about the "Downward Sloping Wedge"

PEN has a long history of this pattern and I am close to making a call that it is about to occur again. At least "Edwards and Magee" seem to agree with me a little.

Examples:
Falling Wedge
"A falling wedge formation develops as price continues to converge to a point after falling rapidly. When price breaks out of a falling wedge, it drifts sideways or in a dull rounding bottom before the rally begins. Falling wedges are most common in bull markets, as they provide the fuel for the continuation of the primary trend."

http://www.optionetics.com/images/articles/fruffy0322023.jpg

Downward sloping wedge
"The analysis is similar to the rising wedge, but there is an important difference. When the stock breaks out of a rising wedge, the result is often a sharp move lower and a retracement of the entire preceding move higher (during the formation of the wedge). The falling wedge, on the other hand, is generally followed by listless and uneventful trading.

Point of conjecture that PEN remains in a primary uptrend but I believe it is and has been since Jan 2009, despite the volitility. I definately see many downward sloping wedge patterns and in one right now. Watch for a turn in the MACD.

PEN 5year/Weekly
http://i115.photobucket.com/albums/n290/rockingham178/PEN_Weekly_5year.jpg


we have the very lack lustre low volume...now watch for any hint of rising volume as PEN is almost at the turn point of the "falling wedge". If the volume comes in and the sp rises then the pattern is confirmed once again.

 

[Miner]

Re: PEN - Peninsula Minerals

And down we went.......people really love CR's don't they and I only have one piece of advice for me that I continue to follow:

""Be greedy when others are fearful... and fearful when others are greedy" Warren Buffet"

Suffice to say, for me this is an opportunity of a lifetime. Only because I have followed this company for so long and can foresee a positive outcome now in the not to distant future. 2012 to be exact.

I won't say anymore just now on what I think of PEN or the latest additional positive announcement on drill results (again...very consistent this aspect). However I will have a dabble at my other pastime interest being charts.

I am an amateur in the extreme with charting but it is fascinating how on the odd occasion it actually occurs technically as it is supposed to.

"TECHNICAL TOOLBOX: Getting An Edge With the Wedge "
http://www.optionetics.com/market/articles/6018

Lets see what "Edwards and Magee" say about the "Downward Sloping Wedge"

PEN has a long history of this pattern and I am close to making a call that it is about to occur again. At least "Edwards and Magee" seem to agree with me a little.

Examples:
Falling Wedge
"A falling wedge formation develops as price continues to converge to a point after falling rapidly. When price breaks out of a falling wedge, it drifts sideways or in a dull rounding bottom before the rally begins. Falling wedges are most common in bull markets, as they provide the fuel for the continuation of the primary trend."

http://www.optionetics.com/images/articles/fruffy0322023.jpg

Downward sloping wedge
"The analysis is similar to the rising wedge, but there is an important difference. When the stock breaks out of a rising wedge, the result is often a sharp move lower and a retracement of the entire preceding move higher (during the formation of the wedge). The falling wedge, on the other hand, is generally followed by listless and uneventful trading.

Point of conjecture that PEN remains in a primary uptrend but I believe it is and has been since Jan 2009, despite the volitility. I definately see many downward sloping wedge patterns and in one right now. Watch for a turn in the MACD.

PEN 5year/Weekly
http://i115.photobucket.com/albums/n290/rockingham178/PEN_Weekly_5year.jpg


we have the very lack lustre low volume...now watch for any hint of rising volume as PEN is almost at the turn point of the "falling wedge". If the volume comes in and the sp rises then the pattern is confirmed once again.

Hi Hangseng

Welcome you back after a fortnight. Looks like you went to take a lesson on philosophy or having a good sideline to see how things are merging

Any way now more on uranium matter I was lucky to get additional quota from PEN on my request when there was a shortfall. Your posting in PEN did help me. I being an impatient personality and with less astute focused sense like yours and few others, am still unsure if it was a smart move to acquire at 4 cents when the price fell down less than 4 cents. But with an option to buy at 3 so I am not too perturbed.

I have been following the PEN drill results closely. I am unsure if they are comparable with the drill result you see for Yeelirrie mines, Toro (WA one) or Mega Uranium. Excepting the hole result from RMR 3099 giving 1.07 pound per ppm other drill results are of low value. Of course more drills to go before one can draw any good predictive value.

I am illeterate on reading the wedges and the only wedge I understand potato wedge . But seriously could you please post some elaborate information on the concept of falling wedge ? As a layman in this wedge subject I thought every falling share will have a falling edge ? But I am not criticising but trying to gather more understanding to fill up my knowledge voids.

Look forward to hear back from you.

 

[hangseng]

Re: PEN - Peninsula Minerals

Thanks Miner.

First my disclaimer again....I am very much an amateur at charting. It is simply an aspect I am interested in. First and foremost I rely on fundamental analysis for intial stock selection. A little difficult with spec stocks such as PEN initially as they don't have an income as yet. Once I have selected a stock I am interested in investing in, I then have a look at the chart for an entry point. I don't chase running stocks.

Yes with hindsight you could suggest it may have been better not to particiapate, but it depends on ones viewpoint.

I am an investor in PEN, "I want and need them to succeed". By taking part I add to the coffers of the company and aid in reducing risk. By not taking part I buy a few more shares at market (without free options) and provide nothing of value to the company and only minimal value to me adding to the risk. I took all I could afford and then took what I could afford in the shortfall. My average buy now being below the current sp as well. If the stock goes lower, which IMO is now unlikely then I will dollar cost average. I don't do this with every stock only stocks with lowering risk and inherent high future value. PEN fits this perfectly for me.

That out of the way let's look at (descending/falling) wedges, not the potato or door jam kind but the Technical Analysis (T/A) kind

To start with have a look at this site, very interesting and put up for traders. Excellent simple explanations of chart patterns.
http://www.coveredcallswins.com/chartpatterns/BestBullish&BearishPatterns.html

Wedges - Falling
http://www.coveredcallswins.com/chartpatterns/image8UT.JPG

"PATTERN CHARACTERISTICS
Bullish! -
The failure rate for falling wedges is very low at 10% while the average rise of 43% for this indicator suggest a profitable formation to trade. The highest price after the breakout is approx. the beginning of the trendlines. Pattern

Shape -
Two drawn downward-sloping to the right side trendlines that eventually must intersect. Use the trendline feature to draw the lines. Most formations have at least five touches. 3 on one side and 2 on the other side.

Trading Tactics -
Most falling wedges has a mininum duration of 3-wks or more. Anything less is most likely a pennant. Formations rarely exceed 4 months long.

Be ready to cover when the falling wedges come to an intersect."

If you also have a look at a "Broadening Falling Wedge" you will see the difference in the patterns with this pattern displaying a widening (broadening) bellows type pattern. This is a bearish pattern which is currently the case with the ASX200 amongst others. As opposed to PEN with a now very distinct "Descending Wedge" pattern. Basically they are the reverse of each other.

"Broadening Falling Wedge"
http://www.coveredcallswins.com/chartpatterns/image6gl.jpg

And some stocks simply fall into the abyss, similar to what occurred to Futuris, BMN and many others. Not sure what you call a pattern that simply spikes straight down...a spear maybe???

Distinct aspects of a falling wedge are described above but also it is noted as a fall on very low volume. When the wedge begins to close to an apex at the bottom and volume begins to build on the buy side the sp breaks up trough the wedge upper side. To confirm it also needs to keep going. PEN has had a couple of false breakouts recently, but they were breakouts from the wedge pattern none the less.

Some very good explanations and examples here:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:falling_wedge

Hope this helps with your question on this a little miner.


Now for grades.

When comparing grades of U stocks look at the mining method to be used. ISR has very high recovery rates compared to convential mining. ISR will recover far more than the conventional crush and mill method, also at a far lower operating expense (OPEX).

The grades PEN is getting from Lance for ISR are excellent. ISR is now proven to be economical with very low grades of around 100/200ppm, conventional mines are uneconomical at these levels. So when you are averaging around 700ppm as PEN is yes they are good grades for ISR.

Have a look at PNN and why they decided not to go ahead, more correctly shelved for now until the U price recovers. Very high grades but conventional methods at very high OPEX/CAPEX costs. BMN was hit hard for the same reasons and I am sure more will follow, except PEN.

There is an excellent read on this subject here:

Exploding the Myth of Uranium
“Pounds in the Ground”

How Many Pounds Can a Company
Really Recover from ISR Uranium Mining?

The In Situ Recovery (ISR) Series
Part Two of a Three-Part Series

What you shouold focus on with ISR is Permeability (Darcy rating), this is the key factor in uranium recovery for ISR. A little known factor is that PEN at Lance has a Darcy rating 5 times higher than nearby Uranerz at Nichols Ranch Wyoming and higher grades indicated.

Glenn Catchpole is the CEO of Uranerz. They are going ahead with ISR in Wyoming on values far less than PEN is displaying.

"The make-break point for a formation’s permeability is its Darcy rating. How high is the Darcy? A typical Darcy can range from minus 1000 to plus 3. The higher the Darcy, the more permeable the formation and that would help determine how economic the orebody is. An acceptable range would be one-half to one Darcy. What is a Darcy? Catchpole said, “It is gallons per day over feet squared.” He added a pure hydrologist would calculate the feet per day or centimeters per second to get a more accurate permeability assessment. However, the Darcy is a widely accepted measuring unit in the industry.

Until a company gets its Darcy rating on its property, one can’t be completely certain the property can be mined by ISR. What guidelines does one depend upon? Catchpole said, “Historical research can give you permeability levels for a formation.” So we asked Catchpole how he felt about his Excalibur properties. He answered, “We know our properties are permeable enough.” How permeable will be answered with the pump tests."

Hope this helps and all makes sense a little Miner. I did this on the run between client meetings and have to go now, things to do and places to go.

Cheers and keep smiling
HS

 

[Miner]

Re: PEN - Peninsula Minerals

Thanks Miner.

First my disclaimer again....I am very much an amateur at charting. It is simply an aspect I am interested in. First and foremost I rely on fundamental analysis for intial stock selection. A little difficult with spec stocks such as PEN initially as they don't have an income as yet. Once I have selected a stock I am interested in investing in, I then have a look at the chart for an entry point. I don't chase running stocks.

Yes with hindsight you could suggest it may have been better not to particiapate, but it depends on ones viewpoint.

I am an investor in PEN, "I want and need them to succeed". By taking part I add to the coffers of the company and aid in reducing risk. By not taking part I buy a few more shares at market (without free options) and provide nothing of value to the company and only minimal value to me adding to the risk. I took all I could afford and then took what I could afford in the shortfall. My average buy now being below the current sp as well. If the stock goes lower, which IMO is now unlikely then I will dollar cost average. I don't do this with every stock only stocks with lowering risk and inherent high future value. PEN fits this perfectly for me.

That out of the way let's look at (descending/falling) wedges, not the potato or door jam kind but the Technical Analysis (T/A) kind

To start with have a look at this site, very interesting and put up for traders. Excellent simple explanations of chart patterns.
http://www.coveredcallswins.com/chartpatterns/BestBullish&BearishPatterns.html

Wedges - Falling
http://www.coveredcallswins.com/chartpatterns/image8UT.JPG

"PATTERN CHARACTERISTICS
Bullish! -
The failure rate for falling wedges is very low at 10% while the average rise of 43% for this indicator suggest a profitable formation to trade. The highest price after the breakout is approx. the beginning of the trendlines. Pattern

Shape -
Two drawn downward-sloping to the right side trendlines that eventually must intersect. Use the trendline feature to draw the lines. Most formations have at least five touches. 3 on one side and 2 on the other side.

Trading Tactics -
Most falling wedges has a mininum duration of 3-wks or more. Anything less is most likely a pennant. Formations rarely exceed 4 months long.

Be ready to cover when the falling wedges come to an intersect."

If you also have a look at a "Broadening Falling Wedge" you will see the difference in the patterns with this pattern displaying a widening (broadening) bellows type pattern. This is a bearish pattern which is currently the case with the ASX200 amongst others. As opposed to PEN with a now very distinct "Descending Wedge" pattern. Basically they are the reverse of each other.

"Broadening Falling Wedge"
http://www.coveredcallswins.com/chartpatterns/image6gl.jpg

And some stocks simply fall into the abyss, similar to what occurred to Futuris, BMN and many others. Not sure what you call a pattern that simply spikes straight down...a spear maybe???

Distinct aspects of a falling wedge are described above but also it is noted as a fall on very low volume. When the wedge begins to close to an apex at the bottom and volume begins to build on the buy side the sp breaks up trough the wedge upper side. To confirm it also needs to keep going. PEN has had a couple of false breakouts recently, but they were breakouts from the wedge pattern none the less.

Some very good explanations and examples here:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:falling_wedge

Hope this helps with your question on this a little miner.


Now for grades.

When comparing grades of U stocks look at the mining method to be used. ISR has very high recovery rates compared to convential mining. ISR will recover far more than the conventional crush and mill method, also at a far lower operating expense (OPEX).

The grades PEN is getting from Lance for ISR are excellent. ISR is now proven to be economical with very low grades of around 100/200ppm, conventional mines are uneconomical at these levels. So when you are averaging around 700ppm as PEN is yes they are good grades for ISR.

Have a look at PNN and why they decided not to go ahead, more correctly shelved for now until the U price recovers. Very high grades but conventional methods at very high OPEX/CAPEX costs. BMN was hit hard for the same reasons and I am sure more will follow, except PEN.

There is an excellent read on this subject here:

Exploding the Myth of Uranium
“Pounds in the Ground”

How Many Pounds Can a Company
Really Recover from ISR Uranium Mining?

The In Situ Recovery (ISR) Series
Part Two of a Three-Part Series

What you shouold focus on with ISR is Permeability (Darcy rating), this is the key factor in uranium recovery for ISR. A little known factor is that PEN at Lance has a Darcy rating 5 times higher than nearby Uranerz at Nichols Ranch Wyoming and higher grades indicated.

Glenn Catchpole is the CEO of Uranerz. They are going ahead with ISR in Wyoming on values far less than PEN is displaying.

"The make-break point for a formation’s permeability is its Darcy rating. How high is the Darcy? A typical Darcy can range from minus 1000 to plus 3. The higher the Darcy, the more permeable the formation and that would help determine how economic the orebody is. An acceptable range would be one-half to one Darcy. What is a Darcy? Catchpole said, “It is gallons per day over feet squared.” He added a pure hydrologist would calculate the feet per day or centimeters per second to get a more accurate permeability assessment. However, the Darcy is a widely accepted measuring unit in the industry.

Until a company gets its Darcy rating on its property, one can’t be completely certain the property can be mined by ISR. What guidelines does one depend upon? Catchpole said, “Historical research can give you permeability levels for a formation.” So we asked Catchpole how he felt about his Excalibur properties. He answered, “We know our properties are permeable enough.” How permeable will be answered with the pump tests."

Hope this helps and all makes sense a little Miner. I did this on the run between client meetings and have to go now, things to do and places to go.

Cheers and keep smiling
HS

My Good ness
A wealth of information and thanks immensly.
How could you write such a good story in between meetings. You bloody has good client who pays for writing stories in ASF
Seriously good write up and very informative.

 

[hangseng]

Re: PEN - Peninsula Minerals

No they wouldn't pay for that miner lol. However the benefits of operating a consultancy is my time is mine, except for when the client pays. When they aren't paying I do what I like.

One of the drawbacks though is you work when work is there and very little, if any time off...like now and the last few months.

Cheers and have a great weekend
HS

 

[hangseng]

Re: PEN - Peninsula Minerals

From the April US NRC Mine Permit meeting for anyone interested in ISR mine permitting. This is how PEN are going about it in Wyoming:

Ross ISR Uranium Recovery Project_NRC Meeting Presentation
https://www.yousendit.com/download/dXFVWGJPK3hubVh2Wmc9PQ


And if you haven't already, have a listen to Gus Simpson the MD this morning on BRR:
http://www.brr.com.au/event/66095/p...to-resource-mr-gus-simpson-executive-chairman

We are finally about to see the PFS results, has been a long time coming. PEN now way oversold and starting to gain attention again, not surprising at all.

 

[hangseng]

Re: PEN - Peninsula Minerals

Very lonely here...

• Outstanding PFS out last week, confirming the low Opex and Capex of Lance.
• Excellent drilling announcement again today with some peak vales of 2000ppm and almost all results over 200ppm and in a new location. So very likely the resource will be uograded.
• Volume increasing finally today

....but not a peep here

Thankfully the USA values ISR uranium projects

Here is a comparison of PEN's Lance project, with what the USA regards as one of the good ones.

Both companies projects in the Powder River Basin Wyoming USA, both the same ISR process. Data sourced from the respective companies recent PFS.

Lance is also noted as having a Darcy rating around 4-5 times higher than Uranerz has reported (as mentioned here previously).

Both companies are delineating further resources.

Uranerz is on a buy recommendation with 5 USA brokers and is ahead of PEN by 12mths on permitting and proposed start up.

The figures speak for themselves. Also do a comparison of the Opex and Capex of PEN compared with conventional miners costs. You will see why ISR is so good.


PEN 15.1M/lbs -
$72.1M Capex (of all plant and equipment including contingency for replacement cost of around $11M and mobile equipment)
$21.42/lb Total Opex (including taxes and royalties)
$14.00/lb Opex

Uranerz 11.25M/lbs -
$85.2M Capex (of all plant and equipment not including any contingency for replacement cost of plant or any mobile plant)
$32.70/lb Opex (including taxes and royalties, plus $6.70/lb toll processing fee)
$26.00/lb Opex