Peninsula Energy's Lance Uranium Project Maintains Momentum in Wyoming
Peninsula Energy has reaffirmed that its Lance uranium project in Wyoming, United States, is progressing steadily toward its production target of 400,000 to 500,000 pounds of uranium yellowcake. This forecast is supported by the Lance central processing plant's (CPP) robust capacity of 2.0 million pounds per year and strong advancements at Mine Unit 4, which is projected to contribute approximately 60 per cent of the total output across 2026 and 2027.
Minor Hiccup Resolved Under Warranty
During the ramp-up phase, a temporary issue arose at the CPP when Peninsula discovered that agitator assemblies in both dual precipitation circuits, crucial for the final dried yellowcake stage, had been incorrectly installed by the contractor. The agitators have since been removed, with replacement units ordered directly from the manufacturer. Delivery is anticipated within five to seven weeks, followed by reinstallation and re-commissioning, expected to take about an additional week.
The rectification cost, estimated at US$230,000 (A$330,000), is covered under warranty. Peninsula expressed confidence that the project will still meet its production guidance, leveraging the CPP's substantial over-capacity to manage the interim period. Notably, the precipitation circuits have already achieved 99 per cent efficiency since operations commenced in September 2025.
Wellfield Operations Continue Uninterrupted
While the agitator issue is being addressed, wellfield operations will proceed without disruption to maintain aquifer conditions and wellfield integrity. This is facilitated by the CPP's 8,000-pound resin storage capacity, with process fluids recirculated as necessary. Mine Unit 4 is performing exceptionally well, with acidification processes at Header Houses HH-14 and HH-16 ahead of schedule and initial analyses indicating strong uranium grades.
Peninsula expects to complete the recoating of its phase two ion-exchange (IX) units and elution tanks by the end of March, establishing full circuit capacity. Additionally, the company has ordered a small reverse osmosis (RO) plant to purify water for the wash cycle on plate-and-frame filter presses and to reduce elevated sodium and chloride levels in site water, which could impact final product specifications. The RO plant is slated to be operational within four to six weeks.
Advancements in Mining Unit MU-4
On the wellfield front, Peninsula reports that the development of Mining Unit MU-4 is ahead of schedule under its low-pH chemistry reset plan. Acidification at Header House 14 began in late December and is progressing rapidly, with completion expected shortly. The average pH has decreased to 2.46, nearing the target of less than 2.0. Importantly, Peninsula anticipates that uranium-rich solution will begin flowing to the CPP in the next week or two, enabling the first uranium capture on resin from MU-4.
Early results are promising, highlighted by a peak daily uranium grade of 352 milligrams per litre from a single production well, setting a project record. At Header House 16, acidification started three weeks ago and is also exceeding expectations, with pH levels down to 4.53. Construction of a third Header House, HH-15, will be finalized by the end of February, with acidification scheduled to commence in early March.
Flow rates across HH-14 and HH-16 average 12.4 gallons per minute, surpassing the reset plan's assumption of 12.0 gallons per minute. Peninsula believes these outcomes validate its low-pH in-situ recovery (ISR) strategy and optimised wellfield design, which are yielding superior results compared to MU-3 and are expected to enhance recovery curves and long-term economics.
Strategic Importance of the Lance Project
Peninsula's flagship Lance Project is a modern, large-scale, long-life operation located in Wyoming, USA, a premier jurisdiction for uranium and mining. With a defined JORC resource of 58 million pounds of uranium oxide, it ranks among the largest uranium projects in the United States. As US domestic uranium supply security becomes a critical policy focus, Peninsula's measured progress at Lance is strengthening its execution credentials and positioning the company for a smooth ramp-up to full production.
Observers are closely monitoring Peninsula Energy as it approaches its next milestone, with resin-to-yellowcake production expected to begin at MU-4 in the coming weeks. This development underscores the company's role in bolstering domestic uranium supply amid growing demand.
