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Doug Bright
Peninsula Energy has confirmed that its Lance uranium project in Wyoming, USA, remains firmly on track for its production guidance of 400,000 to 500,000 pounds of uranium yellowcake.
The forecast has been underpinned by the Lance central processing plant’s (CPP) hefty 2.0 million-pound-per-year capacity and strong momentum at Mine Unit 4, which is shaping up to deliver about 60 per cent of forecast production across 2026 and 2027.
A temporary hiccup emerged at the CPP during ramp-up after Peninsula identified the agitator assemblies in both dual precipitation circuits – key to the final dried yellowcake stage – had been incorrectly installed by the contractor.
The agitators have since been removed. Replacement units are on order direct from the manufacturer, with delivery expected in five to seven weeks, followed by reinstallation and re-commissioning, which are expected to take about one additional week.
‘Mine Unit 4 is progressing very well, with the acidification of both HH-14 and 16 tracking ahead of schedule.’
Peninsula Energy managing director and chief executive officer Mr George Bauk
The US$230,000 (A$330,000) rectification cost falls under warranty, with the CPP’s substantial over-capacity able to take up the slack and Peninsula expressing confidence the project will still hit its production guidance.
The precipitation circuits – the process of extracting the yellowcake from pregnant solution – have already achieved 99 per cent efficiency since operations began in September 2025.
The company says that while the agitator issue is being fixed, wellfield operations will roll on uninterrupted to maintain aquifer conditions and wellfield integrity, supported by the CPP’s 8000-pound resin storage capacity, with process fluids recirculated as needed.
Peninsula Energy’s managing director and chief executive officer Mr George Bauk said: “Mine Unit 4 is progressing very well, with the acidification of both HH-14 and 16 tracking ahead of schedule and initial analysis indicating strong uranium grades.”
In other words, Peninsula expects to complete the recoating of its phase two ion-exchange (IX) units and elution tanks by the end of March, which will establish full circuit capacity.
The company has also ordered a small reverse osmosis (RO) plant to purify the water required for the wash cycle on the plate-and-frame filter presses and to reduce elevated sodium and chloride levels in the current site water, which could affect final product specifications. The RO plant is expected to be online in about four to six weeks.
On the wellfield side, Peninsula says its development of Mining Unit MU-4 is ahead of schedule under its low-pH chemistry reset plan.
Header House 14 acidification began in late December and is progressing rapidly, with completion expected shortly. The average pH now stands at 2.46 and is approaching the company’s target of less than 2.0.
Most importantly, Peninsula anticipates that the uranium-rich solution can then begin to flow to the CPP in the next week or two, which will allow the first uranium to be captured on resin from Mining Unit MU-4.
Adding to the good news, the early numbers are eye-catching, headlined by a peak daily uranium grade of 352 milligrams per litre from a single production well, marking a project record.
At Header House 16 acidification, which began three weeks ago, is also ahead of its expected performance, with its pH down to 4.53 after only three weeks.
Construction of a third Header House 15, HH-15, will be completed by the end of February, with acidification slated to begin in early March.
Flow rates across HH-14 and HH-16 average 12.4 gallons per minute, ahead of the reset plan’s assumed 12.0 gallons per minute.
Peninsula believes the results are a clear tick for its low-pH ISR strategy and optimised wellfield design, which is producing superior outcomes to MU-3 and is expected to translate into healthier recovery curves and improved long-term economics.
Peninsula’s flagship Lance Project is a modern, large-scale, long-life project, located in Wyoming, USA, a premier uranium and mining jurisdiction. It is one of the largest uranium projects in the US, with a defined JORC resource of 58 million pounds of uranium oxide.
With US domestic uranium supply security a red-hot policy theme, the company’s rapid, measured progress at Lance appears to be sharpening its execution credentials and setting the platform for a smooth ramp-up to full production.
Keen observers will be watching Peninsula Energy with bated breath as it hits its next milestone, with resin-to-yellowcake production expected to begin at MU-4 in the coming weeks.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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