Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has completed installation of water quality wells for the Mine Unit 3 (MU-3) production area within its flagship Lance Projects in Wyoming, USA, a development milestone that takes the company one step closer to supplying low-pH in situ recovery (ISR) uranium to a growing market.
MU-3, which is within the Ross production area, will be the first production wellfield specifically designed for low-pH ISR production and a restart at Lance.
With the monitor well network installed, the company can now begin hydrology and water quality testing, which will complete the baseline data collection for MU-3.
Installation of the production pattern wells will begin after the data have been collected, and thereafter MU-3 will be available for operations.
Kendrick resource upgrade
While data collection is ongoing at MU-3, Peninsula will begin a drill program at the Kendrick production area to upgrade a portion of its remaining inferred resource to a higher category.
Kendrick currently holds a measured and indicated 8.27 million pounds of triuranium octoxide (U3O8) and 7.66 million pounds of inferred U3O8.
The company intends to release an updated mineral resource estimate once the drill results are released.
Additionally, Peninsula will collect core samples to further evaluate Kendrick’s uranium minerology and carbonate content, two key technical parameters which will aid in the calculation of future operational costs and uranium recovery.
Exciting news upcoming
“Peninsula continues to advance significant milestones to bring Lance back into production, with the completion of the MU-3 monitor network being just one example,” Peninsula managing director and chief executive officer Wayne Heili said.
“Additionally, we have diligently advanced our detailed planning for the revised production strategy at Lance and we anticipate sharing more details around the end of August.
“The exciting resource development work programs we are pursuing concurrently with the plant capacity expansion, resin processing and product drying circuit engineering work, demonstrate our dedication to delivering value for shareholders over the long term.
“These ongoing works mean that Peninsula will be poised for success in meeting the escalating demand for uranium in the United States and worldwide.
“We thank our shareholders for their patience and support as we continue to make progress and we look forward to sharing updates and developments of these work programs as they unfold."