Uranium exploration company Peninsula Energy remains confident production will resume at its Lance uranium project at the end of the 2024 calendar year.
Uranium exploration company Peninsula Energy remains confident production will resume at its Lance uranium project at the end of the 2024 calendar year.
Wayne Heili-led Peninsula told the market on Wednesday that plant construction and wellfield development activities at the site, located in the US state of Wyoming, were both close to budget and on schedule.
“The entire site is buzzing with the energy and excitement of a construction project in full swing,” Mr Heili said.
“We are very pleased to confirm that our preparations are continuing to proceed safely, smoothly and on schedule.”
As part of the construction process, ASX-listed Peninsula is facilitating the expansion and modification of the existing Ross uranium recovery process plant, along with its respective auxiliary facilities.
Once finalised, it will allow for expanded production and include a comprehensive central processing component, which will provide an opportunity for dry yellowcake to be produced.
Peninsula also provided an update regarding its 2025 calendar year production guidance at Lance, which was initially predicted to reach 1.1 million pounds of uranium oxide.
“The company has adopted a slightly more conservative approach to its 2025 calendar year production forecast and now expects an approximate range of between 700,000 and 900,000 pounds,” Peninsula said.
“The company’s current cash balance is expected to continue to support operating and capital expenditures until the generation of self-sustaining cash flows, which remain projected for the third quarter of the 2025 financial year.”
The revised figure is primarily due to a slight dip in the initial production rampvup, compared to the initial 2023 life of mine plan production, which was put together by Peninsula prior to complete product development funding being attained.
On May 16, Subiaco-based Peninsula tapped investors for $105.9 million in order to secure sustainable cash flow and further enhance activities at Lance.
Peninsula shares last changed hands at 10.5 cents as of 10.40am WST after briefly dipping 4 per cent on Wednesday morning.
