Regular deliveries of drummed uranium from Peninsula Energy Lance projects in Wyoming have commenced as the company continues to ramp up production at the Wyoming in-situ leach operation. It announced that the first shipment of about 16,000 pounds U3O8 (6.2 tU) was delivered to a North American conversion facility on 31 May. The company expects to make deliveries at regular intervals, it said.
Operations commenced at Lance Ross Permit Area in December 2015. Perth, Western Australia-based Peninsula made its first delivery of uranium under its wholly-owned subsidiary Strata Energy Inc 2011 sale and purchase agreement with an unnamed U.S. utility in January, but that delivery was made using borrowed material, to ensure compliance with the delivery schedule.
Production at Lance is now ramping up, with the 4th header house due to come online in early June. The 5th header house, of a total of seven, is expected to come online in the third quarter of 2016. All 7 header houses are due to be constructed and commissioned by the end of the year although meaningful amounts of uranium are not likely to be extracted from the 6th and 7th header houses until early in 2017.
Production performance to date at the first two header houses indicate 2016 production of 200,000 to 300,000 pounds U3O8 (77-115 tU). Based on current ramp-up rates, the company said it expects to achieve the targeted production level of 600,000 to 700,000 pounds U3O8 (231-269 tU) per year for the first stage of the Lance project during the first half of 2017.
Peninsula is developing the Lance projects, comprising the Ross, Kendrick and Barber permits, under a three-stage strategy that it says reduces the initial funding requirements while allowing the company to defer most of its planned uranium sales contracts. Commissioning the processing facility and well-field operations during the first stage of the project also significantly de-risks the subsequent stages.
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