Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF, FRA:P1M) has started acidification at Header House 16 in Mine Unit 4 (MU-4) at its 100%-owned Lance Uranium Project in Wyoming, advancing its production reset plan.
Acidification at Header House 14, which began in late December 2025, is tracking ahead of expectations, with average flow rates of about 15 gallons per minute (GPM) to date versus a reset plan assumption of 12 GPM.
At this stage of acidification, Peninsula reported the rate of pH reduction is ahead of schedule, with pH currently at about 3.48 S.U., down from a natural level of about 8.5 S.U., and progressing toward a targeted mining level of <2.0 S.U.
Peninsula expects acidification at Header House 14 to continue for about three months, after which uranium-bearing solution from the header house will be redirected to the Lance Central Processing Plant (CPP) for processing.
“The commencement of acidification at our second header house in Mine Unit 4 represents another important step in executing our production reset plan. The team is currently finalising the third header house, Header House 15, and we have a clear schedule in place to complete all six header houses within MU-4 ahead of schedule," Peninsula Energy’s Managing director and CEO George Bauk said.
“While the team remains focused on addressing the legacy issues within MU-3 – stemming largely from the unexpected issues which halted acidification in the June 2025 Quarter – overall the Lance Project remains on track to deliver our CY2026 production guidance of 0.4Mlbs to 0.5Mlbs of yellowcake. The strong progress being made in MU-4, which is a key driver of the company’s near-term production outlook, supports our expectation that production volumes will steadily increase from the March 2026 Quarter onwards.
“We are also nearing completion of permanent piping upgrades within the CPP, on time and below budget, as commissioning activities continue and uranium volumes through the plant steadily increase.”
Revised wellfield designs underpin MU-4 development schedule
Following a detailed review of wellfield pattern designs in CY2025, Peninsula has implemented revised wellfield maintenance plans and pattern designs from MU-4 onwards, which it said are materially different from those used in MU-3 and expected to improve production outcomes.
Under the revised design, each header house is planned to comprise about 30 production wells with about 60 feet spacing between production and injection wells, compared with 45 production wells and about 80 feet spacing used in MU-3. Peninsula said the new configuration is intended to reduce the time required to reach the targeted acidification pH level of <2.0 S.U.
MU-4 includes 6 header houses and accounts for about 60% of Peninsula’s uranium production forecast for CY2026 and CY2027 under its reset plan.
Peninsula said construction of Header House 15 is nearing completion, with acidification planned to commence post-February 2026, while construction of Header Houses 17–19 is scheduled to begin in the March quarter 2026. The company’s schedule indicates all 6 header houses in MU-4 are expected to be completed by end-September 2026, ahead of the reset plan timeline of November 2026.
MU-3 challenges flagged; CY2026 guidance maintained
Peninsula said wellfield maintenance requirements in MU-3 have been higher than anticipated due to operational challenges linked to a temporary pause in acidification earlier in 2025, which followed resin storage capacity constraints associated with delays to the CPP expansion. It said those constraints have now been addressed.
The company expects any MU-3 production delays to be more than offset by an earlier start-up of all six header houses in MU-4, and said it remains on track to meet CY2026 uranium production guidance of 0.4Mlbs to 0.5Mlbs, despite minimal uranium production in the December 2025 quarter.
CPP commissioning continues, with focus on water purification and piping upgrades
Peninsula said commissioning at the Lance CPP continues, with fine-tuning underway across elution, precipitation, filtration and drying processes. A key focus is implementing a water purification system for process water to reduce impurity levels in the final dried yellowcake product.
The company also reported progress on replacing corrosion-affected piping in Phase 1 of the CPP, with installation well advanced and expected to be completed in January, on schedule and below budget.
US policy backdrop: nuclear review, enrichment funding and critical minerals EO
Peninsula noted the US Government has commenced a formal review of the nuclear energy industry, including a hearing titled “American Energy Dominance: Dawn of the New Nuclear Era” held on January 7, 2026, by the US House Committee on Energy & Commerce.
It also highlighted a January 5, 2026 US Department of Energy announcement of $2.7 billion in funding over the next 10 years to strengthen domestic uranium enrichment services.
“President Trump is catalysing a resurgence in the nation’s nuclear energy sector to strengthen American security and prosperity,” said Secretary of Energy Chris Wright on January 5, 2026. “Today’s awards show that this Administration is committed to restoring a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow.”
Peninsula added that US uranium production in 2024 was about 1 million pounds, compared with annual consumption of about 50 million pounds.
The company further pointed to a new Executive Order titled “Adjusting Imports of Processed Critical Minerals and their Derivative Products into the United States”, which it said specifically mentions uranium and flags the potential for price floors to support domestic production of certain critical minerals.