May 21, 2022

Peninsula Energy (ASX:PEN) boosts development budget for Lance, Wyoming project – The Market Herald

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  • Publicly listed uranium specialist Peninsula Energy (PEN) is committing an additional US$3.4 million (A$4.7 million) for early mine preparation work at its Lance project in Wyoming, USA. United
  • The additional funding will accelerate the potential restart of uranium production operations at the Lance Project and bolster Peninsula’s workforce by eight people
  • This follows the early completion of field demonstration work for Peninsula’s low pH in-situ recovery (ISR) production process in the region in 2021
  • The company will use the additional budget to prepare for uranium production from a new mining area at Lance and will drill additional holes in the new area.
  • Peninsular Energy shares are down 2.86% at 17 cents each at 2:50 p.m. AEDT

Publicly listed uranium specialist Peninsula Energy (PEN) has committed an additional $3.4 million (A$4.7 million) to early mine preparation work at its Lance project in Wyoming, USA. United.

The additional funding is designed to expedite the potential restart of uranium production operations in the Lance area once Peninsula makes a final investment decision for the project.

This follows the early completion of field demonstration work for Peninsula’s low pH in-situ recovery (ISR) production process in the region in 2021. The company has collected sufficient data from the demonstrations in the field well ahead of schedule, which means she was able to cut back on the work. short program of approximately seven months.

Peninsula said this morning that it was still analyzing data collected during demonstration work.

In the meantime, the additional budget for the preparatory works of the Lance project will help the company to prepare for the production of uranium from a new mining area called Mining Unit 3.

This area contains an estimated measured and indicated uranium resource of 1.59 million pounds (721,000 kilograms) of uranium, with an additional 350,000 pounds (159,000 kilograms) of inferred resources.

As part of early preparatory work, Peninsula plans to reinstate some historic drill holes to update them to a standard suitable for ISR operations. As part of the plan, the company will also drill an additional 30 holes to test the outer limits of the Mining Unit 3 resource area.

Peninsula Managing Director and CEO Wayne Heili said the company had made “significant development progress” on its Lance project in 2021.

“2022 is a pivotal year as we move forward with project preparations alongside the completion of our technical assessment studies,” Mr. Heili said.

“The budget for the first preparatory work is a modest but important investment that can lead to an accelerated resumption of production.

“We want to position Lance for the best opportunity to resume commercial production operations quickly, efficiently and successfully, in the event that a final investment decision to restart the project is made in the coming year.”

Other preparatory work for the project will include final engineering designs and modifications for the low pH ISR processing facilities and limited production operations at Mining Unit 1 and Mining Unit 2.

Peninsula will also use part of the new budget to increase its staff by eight people, with 37 staff expected by the end of June this year.

Peninsular Energy shares fell 2.86% to 17 cents apiece at 2:50 p.m. AEDT. The company has a market capitalization of $169.5 million.