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Highlights
- Smooth and efficient restart of operations at Lance ISR uranium project.
- Expansion plans approved and wellfield ramp-up continuing through 2025.
- First yellowcake production expected by March 2025.
Peninsula Energy Ltd (ASX:PEN) has successfully reactivated the uranium in-situ recovery (ISR) operations at its flagship Lance Uranium Project in Wyoming, USA, as of December 18, 2024. The company reports that the operation is running smoothly and efficiently, an encouraging sign after the restart.
Since production resumed, initial operations have resulted in approximately 1,100 pounds of uranium being captured in the plant’s ion exchange system. This uranium has been held as in-process inventory between December 18 and the year’s close, highlighting the early success of the recovery process. According to Peninsula Energy Ltd, the operations continued seamlessly through the holiday period, demonstrating the effectiveness of their restart strategy.
The company is now focused on scaling up its efforts, particularly in ramping up the wellfield preconditioning and operational flow rates to enhance uranium recovery. Alongside this, Peninsula Energy is making progress on the construction of Phase II of the central processing plant, which includes vital upgrades such as resin elution and uranium precipitation circuits. These developments are slated for completion this month, with one yellowcake dryer already on-site. Construction crews are preparing for installation, which is set to be completed by the end of the first quarter of 2025.
While production of dry yellowcake has not yet commenced, Peninsula remains on track to initiate first yellowcake production by March 2025, aligning with their expectations for an efficient and quick ramp-up.
On the permitting front, Peninsula Energy Ltd has successfully secured approval from the Wyoming Department of Environmental Quality to expand the mine's permit area to encompass the nearby Kendrick Project. The State of Wyoming’s Uranium Recovery Program is also reviewing a proposed amendment that will include the Kendrick area in the company’s Source Materials License. This expansion is critical for the company's long-term growth; however, Peninsula does not anticipate initiating operations in the Kendrick area this year.
Furthermore, Peninsula is well-positioned financially, with an unaudited cash balance of approximately US$45 million as of December 31, 2024. This positions the company strongly to complete the construction of the Phase II plant expansion and continue ramping up production from Mine Unit 3, the first unit to employ the low pH leaching method. These key activities will remain the company’s priority in the first half of 2025.
To provide further insights into operations and future plans, Peninsula’s managing director and CEO Wayne Heili will host a conference call, offering an operational update followed by a Q&A session.
