- Peninsula Energy’s (PEN) definitive feasibility study (DFS) positions its Lance projects, in Wyoming, as a globally competitive in-situ recovery (ISR) uranium operation
- The company completed a DFS for the Ross and Kendrick production areas, which have a resource totalling 21.8 million pounds of uranium oxide
- The DFS outlines a life of mine production of 14.4 million pounds of uranium over 14 years and gross revenue of US$895 million (A$1.2 billion)
- MD and CEO Wayne Heili says the company has a “unique competitive advantage” in being the only US-based uranium company using the low pH ISR method
- A final investment decision on the project will be made by the end of the year
- PEN shares drops 10 per cent to trade at 18 cents per share as of 1:19 pm AEST
Peninsula Energy’s (PEN) definitive feasibility study (DFS) has positioned its Lance projects, in Wyoming, as a globally competitive in-situ recovery (ISR) uranium operation.
The company has completed a DFS which is based on the Ross and Kendrick production areas which have combined resources of 21.8 million pounds of uranium oxide.
The DFS doesn’t include the Barber resource area with its 31.9 million pound resource base and highlights the opportunity for significant future growth for the Lance projects.
Key results of the DFS include a life of mine production of 14.4 million pounds of uranium over an estimated 14-year period, a gross revenue of US$895 million (A$1.2 billion) and a steady production rate of two million pounds of uranium per annum from year four.
The DFS expects a pre-tax present value with a discount rate of eight per cent of US$125 million and a 43 per cent internal rate of return on an average sale price of US$62.38 per pound of uranium.
Peninsula has been transitioning its Lance projects from an alkaline ISR method to a low-pH recovery operation, giving it potential to increase uranium recoveries without compromising public health, worker safety or the environment.
Managing Director and CEO Wayne Heili said the company has a “unique competitive advantage” in being the only US-based uranium company using the low pH ISR method.
“Based on the advanced development stage of the Ross Production Area, Peninsula has a rapid speed-to-market pathway opportunity that will allow the company to leverage current uranium market opportunities,” he said.
Throughout this year, the company has been working towards a final investment decision (FID) to recommence uranium mining at Lance, and completing the DFS helped the board assess the economic and long-term potential of the project.
A FID is expected to be made by the end of the year.
“The [DFS] results highlight the exciting economic potential of Lance. The feasibility conclusion is supported by a combination of very low capital intensity, low operating costs, competitive all-in sustaining costs, a short timeline to production and fully de-risked technical and regulatory regimes,” Mr Heili said.
“Importantly, the results confirm that the company is exceptionally well positioned to move ahead towards a development decision within the current dynamics of the uranium market.”
On the market, PEN shares dropped 10 per cent to trade at 18 cents per share as of 1:19 pm AEST.