Peninsula Energy (ASX:PEN) has restarted uranium production at its Lance projects in Wyoming, United States, after a five-year suspension.
Production resumed on December 18, 2024 within Mining Unit 1 (MU-1).
Uranium recovery
The facilities were originally constructed in 2015 using an in-situ alkaline recovery (ISR) method.
Peninsula has now opted for a low pH ISR method, which offers a better recovery rate, lower costs and faster response time than the previous method.
Next steps
Uranium mined from MU-1 is currently being processed by the Phase 1 satellite plant’s ion exchange system. Flow rates and grades are expected to reach expected levels, with further increases expected.
Construction of Peninsula’s Phase 2 processing plant is underway, and Peninsula is expected to produce its first dry yellowcake product by early March 2025.
Once construction of Phase 2 is complete, Lance will have a 5,000 gallons per minute (GPM) uranium recovery system with the capacity to produce up to 2 million pounds of dry yellowcake (U3O8) per year .
Wayne Heili, Managing Director and Chief Executive Officer of Peninsula, said: “This has been years of preparation, a lot of hard work and many challenges. We are therefore grateful to the team involved and for the continued support of our shareholders. “.
Heili also highlighted Peninsula’s position as “North America’s newest fully independent uranium producer,” emphasizing the importance of uranium supply as global demand for nuclear power increases. He said the company is poised to play “an important role in a clean energy future.”
Shares of Peninsula Energy closed up 6.57% at $1.14 yesterday.
