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
The project is on track to restart production in December.

In an update on October 16, Peninsula Energy reported that all concrete work had been completed and that the building’s structural steel and roofing had been installed. Installation of the building is also largely complete.

The new ion-exchange vessels, elution tanks and precipitation tanks have been placed on the plant slab. Progress is also being made on the installation of key systems, including heating, ventilation and air conditioning, structural steel for pipe racks and equipment support, as well as cable trays and interior lighting.

In preparation for the restart of uranium production, preproduction operational activities have continued in Mine Unit 1 (MU-1), which is undergoing groundwater preconditioning, which, in turn, is progressing in line with the broader project goals.

New development areas, such as Mine Unit 3 (MU-3) header house 11, have been fully constructed and prepared for the start of preconditioning operations.

The company received final regulatory approval for the MU-3 wellfield data package on October 11, authorising the full operational activities within the MU-3 area.

Twelve drill rigs are operating daily to prepare additional production pattern wells in MU-3 header houses 12 and 13.

Well installation in MU-3 is 76% 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.