Peninsula Energy Ltd has received the final key regulatory approvals required to begin uranium recovery operations at the Kendrick Project Area, part of the broader Lance Projects in Wyoming, USA.
The Wyoming Department of Environmental Quality (WDEQ) has granted both the Permit to Mine and Source Materials Licence for Kendrick.
Production to start
Peninsula Energy managing director and CEO George Bauk said: “We are pleased to have received the main permits and licences required to commence production from the Kendrick Project Area.
“This is a major milestone for Peninsula and a critical enabler for long-term growth at the Lance Projects.
“Kendrick is the next sequential production area, boasts a large portion of the available resources and will form a key part of our production strategy.
“We are still working diligently through our revised production plan and intend to release the outcomes of this work as soon as possible.
“As we finalise the plan and prepare for its implementation and release to the market, it's important to emphasise that Peninsula continues to be underpinned by a flagship asset with significant potential, a committed and experienced senior leadership team, and exposure to an improving uranium market.”
In addition, the United States Environmental Protection Agency (EPA) has approved the Aquifer Exemption for the proposed injection zone, based on a comprehensive review undertaken by the WDEQ.
The company needs these approvals to forge a clear pathway to uranium production from Kendrick, which follows the Ross area as the next sequential production zone.
The Kendrick Project hosts a JORC (2012) compliant resource of 19.8 million pounds (Mlbs) of U₃O₈.
At least a decade of supply
Combined with Ross, the Lance Projects support a total JORC resource of 26.2 Mlbs U₃O₈ across both areas, underpinning at least a decade of production-ready uranium supply.
The Kendrick licence area spans 7,992 acres and includes 720 acres of proposed wellfields.
Peninsula will be required to submit detailed wellfield data for each mining unit before operations begin, including baseline water quality assessments and verification of hydrological isolation of the mining zones.
While permitting advances, the company has paused uranium capture operations due to piping issues identified in Phase 1 of its Central Processing Plant (CPP).
Commissioning and handover activities for Phase II of the CPP are expected to commence in the coming weeks, with construction continuing under the oversight of principal contractor Samuel EPC.
Peninsula remains focused on completing its revised production plan for the Lance Projects.
The broader Lance resource totals 58.0 Mlbs U₃O₈, making it one of the largest in-situ recovery (ISR) uranium projects in the United States.
The company is hoping to strengthen its position as a near-term US-based uranium producer with full end-to-end production capability and exposure to the growing demand for nuclear energy in global clean energy markets.