Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has made rapid progress with plant construction and wellfield development activities at its Lance Uranium Projects in Wyoming USA and work is on schedule and close to budget toward a production restart in late 2024.
The company is modifying and expanding the Ross uranium recovery process plant and auxiliary facilities at Lance that were originally constructed in 2015 as an alkaline in-situ recovery (ISR) satellite plant.
It will expand production capacity using the low-pH ISR process and include the complete central processing plant (CPP) capability of producing a finished dry yellowcake product.
The expanded CPP (Phase II expansion) will house additional ion-exchange circuit capacity along with new resin elution, precipitation, filtration and product drying circuits.
Concrete foundations at the Ross CPP expansion location.
Once Phase II construction is completed, the Lance Projects will be home to a 5,000 GPM uranium recovery ion-exchange process plant, capable of independently producing up to two million pounds per annum of dry yellowcake (U3O8) product.
Site preparations have rapidly progressed throughout July with the goal of recommencing production operations in late 2024, while overall construction activities to expand the plant continue to progress as scheduled.
Peninsula adds that the procurement of major equipment is tracking on budget and on schedule, with all major equipment ordered and early deliveries of significant major process equipment made.
It says key workstreams to develop a new production wellfield, Mine Unit 3, are also on track for the start of uranium recovery operations prior to year-end 2024.
Laboratory and pilot plant scale process optimisation tests are also being conducted to further improve uranium recoveries and ensure a high-quality finished product.
“Buzzing with energy”
“Rapid progress was evident across the Lance projects in July as teams of workers were busy preparing the project to resume uranium production operations by the end of this year,” Peninsula managing director and CEO Wayne Heili said.
“The entire site is buzzing with the energy and excitement of a construction project in full swing. We are very pleased to confirm that our preparations are continuing to proceed safely, smoothly and on schedule.”
The company expects its current cash balance to continue to support operating and capital expenditures until it generates self-sustaining cash flows, which remain projected for Q3 2025.
Preparation of MU-3, Header House 11 building interior.
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