Peninsula Energy Ltd expects to begin regulatory inspections and commissioning of the central processing plant (CPP) at the Lance Uranium Project in Wyoming, US, in the June quarter of 2025.
The company also expects to begin production of the first dry yellowcake in the same quarter, once elution, precipitation and filtration circuits are sequentially commissioned in advance.
Peninsula has previously forecast commissioning at the end of the March quarter, but challenging weather conditions and supply chain issues necessitated the re-schedule to later in the year, which may also affect production guidance for the calendar year.
Uranium loading continues
PEN says its board has been frustrated with the delay, working closely with contractors Samuel Engineering, Inc and Samuel EPC, LLC to conclude the project as quickly as possible.
The company has been loading uranium onto resin for elution since December last year and will be looking into short term options to store the resin until the commissioning of the CPP is completed.
As part of his planned on-boarding, newly appointed managing director George Bauk will be on site in Wyoming from Monday February 3 for an extended period to oversee the ongoing commissioning and ramp-up phase.
The board believes it is likely that 2025 calendar year production guidance will need to be revised downward from previous forecasts of 600,000 pounds of uranium.
With a cash balance of US$44.9 million at the end of last year, the company is well equipped to negotiate with providers of additional funding to decrease liquidity risk during the important commissioning and ramp-up phase over the course of CY2025.