Peninsula Energy will begin drilling at the Karoo Project Sites 22 and 29 in South Africa after the company received the necessary approvals from the Department of Mineral Resources (DMR).

The Environmental Management Plans (EMPs) and Prospecting Work Programmes (PWPs) for Sites 22 and 29 were approved by the DMR for the confirmation and delineation drilling program.

Apart from that, the EMP for Site 37 has been approved and the company has been informed by the DMR that the processing of the PWP is imminent.

The drilling program is expected to begin by 24 January 2011, initially at Site 29, and is planned to operate over four phases.

The first Phase of the drilling program will be focused on a selection of the JCI and Union Carbide drill holes that will be re-drilled and logged to determine uranium correlations in order to confirm the historical resources.

The company said that if these results prove be positive, Phase two drilling will commence.

During Phase two of the program, all new surface uranium occurrences within the selected drilling areas will be subjected to an initial drilling program to confirm subsurface extension of the mineralization and to determine grades.

Should the Phase two program results prove positive, Phase 3 will be implemented, consisting of the drilling of widely spaced borehole grids to delineate the lateral extent, thickness and grade of the mineralization.

The Phase four program will consist of in-fill drilling on a more closely spaced grid than utilized in Phase 3 in order to produce a JORC compliant resource.

Following successful completion of the full four phase drilling program, a feasibility study will then be undertaken.