In a strategic move, Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has expanded its US uranium portfolio with the newly established Dagger Project, just 20 kilometres northeast of its advanced-stage Lance Project in Wyoming.
With an initial inferred mineral resource estimate of 6.9 million pounds of uranium at an average grade of 1,037 parts per million, the Dagger Project presents a compelling addition to Peninsula's portfolio.
The Dagger Project sits on an expansive 4,140 acres, contiguous with a historically successful uranium mining site.
Its establishment came after eight years of meticulous acquisition and consolidation of multiple mineral rights packages, incurring a total expenditure of approximately US$800,000.
Peninsula has already chalked out a drilling program for fiscal year 2024 aimed at potentially upgrading the resource base.
This development aligns well with the company's plans for a production restart at its flagship Lance Project in late 2024.
$PEN is expected to commence production at Lance at the end of 2024 under a revised Life of Mine plan released today. The 5,000 GPM uranium ISR plant is estimated to produce 14.8Mlbs of dry yellowcake over 10 years, with an IRR of 26% and NPV8 of US$116.2Mhttps://t.co/W8rBehnOvX— Peninsula Energy (@PEN_Energy) August 31, 2023
“Perfectly” complements Lance Project
Peninsula managing director and CEO Wayne Heili said: “We are very excited to complete this successful long-term acquisition initiative, which has resulted in the establishment of the Dagger Project which boasts an initial JORC inferred U3O8 mineral resource estimate of 6.9 million pounds U3O8.
Importantly, Dagger is located only 20 kilometres from our Lance Project facilities, which provides the company with an exciting opportunity to further increase the size and scale of our already sizeable mineral resource inventory.
“Buoyed by the robust uranium market that provides a supportive environment for re-emerging producers and project developers, we have utilized our in-house knowledge and expertise to expand our project pipeline."
Peninsula’s Lance and Dagger projects.
About Dagger Project
The Dagger Project is in Crook County, Wyoming, within the North Black Hills district in the northeast corner of the State, approximately 20 kilometres northeast of the company’s Ross Processing Plant at Lance.
Homestake Mining Company was the main explorer of the North Black Hills district and operated the Hauber underground uranium mine, which was at the Northern boundary of Dagger.
“Dagger perfectly complements the Lance Projects, which once in production, will be one of the largest uranium in-situ recovery (ISR) operations in the United States,” said Heili
Dagger provides the company with a relatively high-grade uranium resource, location diversity within a top mining jurisdiction and further opportunities to increase the scale and quality of Peninsula’s mineral resource holdings.
Dagger also provides the opportunity to develop a satellite production operation in close proximity to Lance
Forward plan
Peninsula is planning a confirmation drilling program at Dagger during the current fiscal year (FY2024), which will assist in the preparation and publication of an updated JORC-compliant resource estimate.
While it would be reasonable to expect that the majority of inferred mineral resources would upgrade to indicated mineral resources with continued exploration and confirmation drilling, due to the uncertainty of inferred mineral resources, it should not be assumed that such upgrading will always occur.
Heili added: “The establishment of the highly prospective Dagger Project adds greater depth and expansion optionality to our growing company.
“This strategic development comes at an opportune time with the United States government looking to take meaningful action to reinvigorate its domestic uranium production and nuclear fuel cycle capacity, whilst the company continues preparing for the resumption of commercial production at our US-based Lance Projects by late 2024.”