Peninsula Energy Restarts Uranium Production, Expands Lance Project Permits
Peninsula Energy has resumed uranium production at its Lance Project in Wyoming, capturing 1,100 pounds of uranium in late December 2024, while securing key regulatory approvals to expand mining operations.
- Restarted uranium ISR operations at Lance Project on 18 December 2024
- Captured approximately 1,100 pounds of uranium on ion exchange resins by year-end
- Received final Wyoming state approval to expand mine permit to include Kendrick Project area
- Held US$45 million cash balance as of 31 December 2024
- Targeting first dry yellowcake production in March 2025
Restarting Production at Lance
Peninsula Energy Limited (ASX:PEN) has officially restarted uranium in-situ recovery (ISR) operations at its flagship Lance Project in Wyoming, USA, as of 18 December 2024. This marks a significant milestone following a period of construction and regulatory preparation. By the end of the calendar year, the company had successfully captured approximately 1,100 pounds of uranium on ion exchange resins, held as in-process inventory, demonstrating operational momentum early in the restart phase.
The Lance Project, one of the largest independent uranium developments in the US, is ramping up production with a focus on increasing wellfield preconditioning and operational flow rates. This will enhance uranium recovery rates as the company completes construction of its Phase II central processing plant, including resin elution and uranium precipitation circuits, expected to be finalized within the first quarter of 2025.
Regulatory Progress and Expansion
In a key regulatory development, Peninsula has secured final approval from the Wyoming Department of Environmental Quality’s Land Quality Division to expand its authorised mine permit area to include the Kendrick Project area at Lance. This expansion is a critical step in the company’s 10-year production plan, although operations within the Kendrick area are not anticipated to commence in 2025.
Additionally, the company is progressing through the amendment process for its Source Materials License to incorporate the Kendrick area, with expectations to complete this by late March 2025. Both the permit and license amendments are prerequisites for uranium recovery operations in Kendrick, underscoring the importance of regulatory compliance in Peninsula’s growth strategy.
Financial Position and Operational Outlook
Peninsula Energy reported a robust cash position with an unaudited balance of approximately US$45 million as of 31 December 2024. This financial strength supports the ongoing commissioning of the Phase II plant expansion and the ramp-up of production from Mine Unit 3, which will be the first to employ the low pH leaching method exclusively.
The company is also preparing to install the first of two yellowcake dryer units, with dry yellowcake production targeted for March 2025. This transition from in-process uranium inventory to dry yellowcake product will be a key operational milestone, signaling a return to full-scale production and revenue generation.
Engaging Investors
To provide further insight into these developments, Peninsula’s Managing Director and CEO, Wayne Heili, will host an investor conference call on 16 January 2025. The call aims to update shareholders and prospective investors on operational progress and strategic priorities for 2025, followed by a Q&A session to address market queries.
As Peninsula Energy navigates this pivotal phase, the company positions itself to become a fully independent end-to-end uranium producer, well-placed to meet growing demand for clean energy fuel in the US and Europe.
Bottom Line?
Peninsula’s operational restart and permit expansion set the stage for a critical ramp-up phase, with March milestones poised to define its near-term trajectory.
Questions in the middle?
- How quickly can Peninsula scale production to meet its 10-year sales contracts?
- What are the potential regulatory risks or delays associated with the Kendrick Project licensing?
- How will the low pH leaching method impact operational efficiency and costs at Mine Unit 3?
