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

Location
Wyoming, US.

Project Owner/s
Peninsula Energy.

Project Description
The new life-of-mine (LoM) plan for the Ross and Kendrick production areas completed in August 2023 delivered a robust and resilient project development plan for Lance, including an accelerated production ramp-up schedule.

The ten-year LoM model is based on a total resource base of 21.8-million pounds of uranium estimated to be contained within the production areas. LoM uranium production is estimated at 14.8-million pounds from the production areas.

The production and LoM plan has been developed for steady-state production of 1.8-million pounds of yellowcake a year from Ross and Kendrick.

The LoM model features a complete 5 000 gallons per minute in situ recovery (ISR) plant to produce up to two-million pounds a year of dry yellowcake product.

The Ross facility, built in 2015 as an alkaline ISR satellite facility, is undergoing an expansion to increase its production capacity from one-million pounds a year to two-million pounds a year.  The expansion also aims to add the capability to produce a finished dry yellowcake product, uranium oxide.

Kendrick is the next sequential production area.

The current LoM plan does not include production from Lance’s Barber area, which provides a future expansion opportunity at the project.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $116.2-million and an internal rate of return of 26%.

Capital Expenditure
LoM capex is estimated at $285.5-million.

Planned Start/End Date
Production is expected to start in late 2024.

Latest Developments
Peninsula Energy has reported that site construction and preparation activities are continuing and that “solid progress” has been made for an operational restart before year-end.

In an update on activities in August, Peninsula said the Phase 2 plant expansion construction activity was at a high level, with about 70 contract construction workers on site daily.

The construction schedule has shifted to a 24-hour roster, consequently allowing for different construction disciplines to work continuously with minimal conflicts.

In addition to plant construction activities, the company’s employees and drilling contractor teams are actively developing the new wellfield production areas Mine Unit 3 (MU-3) and Mine Unit 4 (MU-4).

The company has 11 drilling rigs under contract to work at the site.

Drill rigs continue to install new ISR pattern in MU-3. To date, 76% of the planned pattern wells have been drilled and cased. Drilling activity in MU-3 is projected to be completed late in the fourth quarter.

Five drill rigs have been assigned to resource delineation and monitoring well installation activities for MU-4. The drilling and casing of interior monitoring wells started in August.

Construction of the wellfield infrastructure (pipelines, powerlines, fences and roads) for the entire MU-3 area is 80% complete. 

Key Contracts, Suppliers and Consultants
Western Water Consultants (definitive feasibility study); and Samuel (detailed engineering and initial long lead time equipment procurement works, and Ross central processing plant expansion).

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