Name of the Project
Lance Projects – Ross and Kendrick production areas.

Location
Wyoming, in the US.

Project Owner/s
Peninsula Energy.

Project Description
A definitive feasibility study (DFS) completed on the Ross and Kendrick Production Areas at Lance in August 2022, based on a total resource base of 21.8-million pounds of uranium, has confirmed a globally competitive uranium in situ recovery operation.

The DFS envisages a “capital efficient” two-stage project. Key results from the DFS include life-of-mine production of 14.4-million pounds of uranium, with steady-state production from Year 4.

Stage 1 involves the transition of the current facility operations to achieve production at a nameplate rate of 820 000 lb/y of uranium. The nameplate capacity has been revised downward from 1.15-million pounds a year, owing to the planned reconfiguration of the ion-exchange section of the Ross plant.

Stage 2 will result in the expansion of the Ross plant facilities to a nameplate capacity of two-million pounds a year, the addition of back-end plant processes to generate a final yellowcake product, rather than loaded resins, and the addition of corresponding new wellfield capacity to produce at a steady-state rate of two-million pounds a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $125-million and an internal rate of return of 43%.

Capital Expenditure
Life-of-mine capital expenditure is estimated at $290.6-million.

Planned Start/End Date
Not stated.

Latest Developments
Peninsula Energy has made a final investment decision (FID) to restart uranium production at its Lance project and has announced a A$35-million capital raise to fund the activities.

The capital raise will include a A$32-million fully underwritten placement and a share purchase plan (SPP) to raise a further A$3-million.

“The underwritten placement supports the board’s investment decision and marks a great milestone for the company . . . with this A$35 million equity issue, the preparatory works . . . already completed and the commencement of restart works, we are on a clear pathway to production commencing in the first quarter of 2023,” Peninsula MD and CEO Wayne Heili has said.

About 244.27-million shares will be placed at 13.1c each to raise the A$32-million, with the shares to be issued under the company’s existing placement capacity.

The issue price represents a 15.5% discount to Peninsula’s last closing price on the ASX and a 23.2% discount to the company’s 20-day volume weighted average share price.

Under the SPP, eligible shareholders could subscribe for up to A$30 000 of additional shares in the company, also at a 13.1c each.

The SPP will close on December 16.

Key Contracts, Suppliers and Consultants
Western Water Consultants (DFS).

Contact Details for Project Information
Peninsula Energy, tel +61 8 6263 4461 or email info@pel.net.au.