WYOMING, USA - Peninsula Energy has reactivated its Lance uranium project's central processing plant (CPP) in Wyoming, resuming the production of dried yellowcake. This restart follows the installation and commissioning of new agitator assemblies in the plant's precipitation tanks, a move that rectifies an issue with their previous incorrect installation. The company reports that this brings the final stage of its processing circuit back to full operational status, and it maintains its production guidance.
The operational reset at Lance, particularly with Mine Unit 4 showing progress, signals a potential return to a stable production trajectory for the company after a period of disruption. This renewed activity aligns with earlier company projections, with production guidance remaining on track.
The company’s mid-February update had disclosed the faulty installation of dual precipitation circuit agitator assemblies, necessitating a temporary shutdown of the plant during its ramp-up phase. The cost of rectifying this issue was reportedly covered under warranty.
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Peninsula Energy's Lance project, described as a large-scale, long-life operation situated in a significant mining jurisdiction, utilizes a low-pH in-situ recovery (ISR) technology. Uranium is initially captured through the Phase 1 satellite plant’s ion exchange system. The project's central processing plant has a stated nameplate capacity of 2 million pounds of U3O8 per year.
Earlier statements from the company, dating back to late 2024 and early 2025, had outlined production targets, with 2025 guidance at 600,000 pounds, projecting an increase to 1.1-1.3 million pounds in 2026 and 1.5-1.7 million pounds in 2027. More recent reports indicate production guidance of 400,000 to 500,000 pounds for the current period. The company has emphasized its transition to becoming a fully independent, end-to-end producer of yellowcake, a development that coincides with calls for increased domestic uranium supply in the United States.
The Lance project's history includes a five-year hiatus in commercial production prior to its recent restart. A shift to low-pH operations occurred after the last commercial output in 2019. The decision to bring yellowcake production entirely in-house, beginning with commencement of production, was a strategic move to mitigate risks associated with third-party processing, as outlined in a revised strategy published in 2023. This strategy focused on specific production areas, excluding others, and attributed the cost of the processing plant to those areas.
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The company's financial position in late 2024 was reported to be robust, with approximately $68 million in cash sufficient to fund construction and working capital needs. In operational transitions, CEO Wayne Heili moved to a new role as Frederick Guerin joined as Chief Operating Officer to oversee operations.
