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

Location
Wyoming, US.

Project Owner/s
Peninsula Energy.

Project Description
The Lance project holds a Joint Ore Reserves Committee-compliant resource of 53.7-million pounds of uranium oxide, making it one of the biggest uranium production development projects in the US.

The DFS envisages a “capital-efficient” two-stage project. Key results from the DFS include life-of-mine (LoM) 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 downwards 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
LoM capital expenditure is estimated at $290.6-million.

Planned Start/End Date
Not stated.

Latest Developments
Peninsula Energy has warned of a "significant delay" in the restart of production at the Lance uranium project.

The decision has prompted Peninsula to adopt a plan to accelerate the in-house development of an expanded and fully optimised production plant to produce a high-quality yellowcake product, free of impurities, aligning with the restart of production at Lance.

The company in May this year flagged an initial delay in the restart of commercial production from the first quarter of this year until mid-2023, as a result of delays in the delivery of equipment.

Peninsula reported on July 19 that resin processing provider Uranium Energy Corp had terminated the agreement to treat loaded resins and produce dry yellowcake from the Lance project.

“While a delay to our planned restart is disappointing, we anticipate emerging with an expanded production capacity and a lower operating cost profile because of this endeavour,” Peninsula MD and CEO Wayne Heili has said.

Heili has explained that initial analysis has indicated that the revised plan will, ultimately, deliver a faster ramp-up to full capacity under a more efficient and capital-effective operation. Implementing in-house processing from the start of production will ensure that the company independently executed its business plan, which includes producing uranium at an expanded rate, without a reliance on services from industry competitors.

Having been on the verge of a production restart, the Lance team will continue to advance plant site preparation and wellfield development activities for the future restart of commercial uranium production operations.

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.