Peninsula Energy Limited (ASX: PEN), a uranium mining exploration entity based in Wyoming, USA has reported that the US Department of Commerce (DOC) has completed its Section 232 Investigation regarding the high levels of uranium imports on the nation’s national security, in response to petition filed by two US uranium mining companies last year.
The company reports that it is waiting for the policy decision by US President (within 90 days) to act on the investigation results, given the company stays focus on enhancing productivity n effectiveness of its Lance Project.
The company recently released its quarterly activities report and quarterly cashflow report for the quarter ending 31st March 2019.
In its quarterly cashflow report, the company reported a negative cash flow of around USD 3.5 million from operating activities with production payments a stimulating factor. The cash outflow from investing and financing activities stood at USD 311,000 and USD 165,000, respectively.
The company’s opening balance of cash and cash equivalents at the beginning of the quarter was around USD 13.6 million while its closing balance is reported at around USD 9.6 million. USD 222,000 were paid to the directors of the entity and their associates in the current quarter by the firm.
The company released its quarterly activities report highlighting the project transformation initiative and operating performance of its Lance projects. The company’s wholly owned subsidiary, Strata Energy has been given a formal approval for amending its existing Permit to Mine (PTM) for low pH in-situ recovery (ISR) mining at the Lance Projects by the Land Quality Division of the Wyoming Department of Environmental Quality (WDEQ). The PTM amendment permits of low pH operations at the Lance projects within the Ross Permit Area in four developing phases i.e.
- Initial Restoration and Mining of Low pH Field Demonstration
- Commencement of MU1 and MU2 Commercial Scale Operations
- Field Scale Groundwater Restoration Demonstration in Low pH Field Area
- Commencement of Commercial Scale Operations (New Mine Units in Ross Permit Area)
The objectives of the mining phase demonstration plan were successfully achieved that included lowering the local mining zone pH to the targeted level of 2.0 S.U. The low pH levels were achieved in consistency with the low pH Feasibility Study parameters.
All the key technical objectives were successfully demonstrated in the mining phase of low pH field demonstration. Also, the pH in the mining zone returned to above 5.0 S.U. target during the initial restoration demonstration phase.
Talking about the operating performance of Lance Projects, Peninsula Energy Limited reported a reduction in production at 15,413 lbs U3O8 as compared to the previous quarter’s production of 20,364 lbs U3O8 due to the natural decline of head grades and the decision to lower the chemical addition. Around 23,325 lbs U3O8 of production dried during the quarter. The company continues to give importance to cost efficiencies at the Lance projects in order to maintain low pH operations.
Under the planned transition for low pH ISR mining at the Lance Projects, the company continues to focus on possible new long-term uranium concentrate sale and purchase agreements by engaging with its existing and potential new customer base.
The company has withdrawn itself from any kind of development activities for the South Africa – Karoo Projects and is working together with its joint venture partners and the South African regulators to assure a systematic exit from the project.
The reduction in surety bond collateral requirements for the Lance Projects in response to the positive results of the low pH field demonstration helped the company receiving approximately US$2.8 million cash proceeds during the quarter.
The stock is currently trading flat at AUD 0.275 (as at 1:25 PM AEST, 16 April 2019).
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