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Peninsula Energy (ASX:PEN) kicks off updated feasibility study for Lance uranium project

ASX News, Energy
ASX:PEN      MCAP $233.1M
28 March 2022 13:20 (AEST)

Source: Peninsula

Peninsula Energy (PEN) is poised to begin an updated feasibility study for its flagship Lance uranium project in the US state of Wyoming.

Lance is a fully permitted uranium in-situ recovery (ISR) facility.

The company said the updated study was expected to be completed in the third quarter of CY 2022 and would build on the 2018 Lance feasibility study.

It will incorporate results and conclusions from Peninsula’s technical de-risking activities, including the recently completed MU1A field demonstration.

The company has engaged Western Water Consultants trading as WWC Engineering, a US-based consulting and engineering firm with significant uranium ISR expertise to author the study.

“With the strengthening market for uranium and with a renewed emphasis on the US domestic capacity for uranium production, we want to ensure that the economic analysis that we rely upon is developed to the highest standard of accuracy and based on technically robust analysis,” Managing Director and CEO Wayne Heili said.

“Our team has put in substantial effort to de-risk many facets of the Lance project and it is appropriate that we update our financial models ahead of considering a final investment decision with respect to restarting production.

“The economic studies in parallel with our early preparatory works program that we are now in the process of conducting, will facilitate an accelerated timeline should we push ahead with a restart.”

Peninsula said the final decision on resuming commercial production operations using the low-pH ISR method will be based upon the conclusions of the updated feasibility study and prevailing uranium market conditions.

The feasibility study and early preparatory work activities will be funded from existing cash resources.

PEN shares were up 2.22 per cent to 23 cents at 1:14 pm AEDT.

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