Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has officially commenced uranium production at its flagship Lance Projects in Wyoming USA, establishing its position as North America's newest fully independent uranium producer.
The re-start of production at Lance as a low-pH ISR operation marks a historic milestone for Peninsula, and its wholly owned US subsidiary Strata Energy Inc, on its journey to become a fully independent producer of uranium yellowcake, growing into a critical supplier of uranium and through this play an important role in a clean energy future.
“This is a very exciting moment for the team and our shareholders to have finally pressed the button on starting production,” Peninsula managing director and CEO Wayne Heili said.
“This has been years in the making, a lot of hard work, and with a fair share of challenges, so we are grateful to the team involved and for the ongoing support of our shareholders.
Delivering secure and sustainable supply
Heili added, "Importantly, Peninsula is now North America's newest fully independent uranium producer. We have restarted Lance at an opportune time, with the long-term fundamentals and demand for uranium incredibly strong, as nuclear energy grows into the leading and most reliable clean energy solution.
“Through Lance, Peninsula will provide a secure and sustainable uranium supply for an energy-hungry, low-carbon future.
"The hard work will continue on site as we still have a way to go through the ramp-up period.
"We will continue to remain focused over these coming months as we complete the rest of the construction, continue ramping up production and moving towards commercial production of dry yellowcake."
Production commenced
Following a five-year hiatus, Peninsula restarted uranium production operations within selected areas of Mine Unit 1 (MU-1) at Lance yesterday.
Initially, the production stream from the mine unit is being routed to the rebuilt Phase 1 satellite plant ion exchange system for uranium capture.
Flow rates and grades are matching the planned levels and are expected to continue increasing.
The captured uranium will be stored on the ion exchange resin until the Phase 2 plant area is fully commissioned in the coming quarter.
Interior photo of the Lance Central Processing Plant.
Phase 2 construction continues
Construction is continuing in the Phase 2 plant area, with Peninsula focused on completing the resin elution and precipitation circuits by mid-January, allowing first elutions and yellowcake precipitation at that time.
The completed construction of the yellowcake filtration and drying circuits are scheduled for February, which would lead to production of the first dry yellowcake product by early March.
On completion of Phase 2 construction, the Lance Projects will be home to a 5,000 gallons per minute (GPM) uranium recovery ion-exchange process plant, with the capability to independently produce up to 2-million pounds per annum of dry yellowcake (U3O8) product.
Peninsula intends to host an investor conference call in mid-January and expects to provide an update on the production restart and look ahead for 2025.