Near term uranium producer Peninsula Energy (ASX:PEN) has cleared a key regulatory milestone to enable commencement of production at the Lance Projects in Wyoming.
The U.S. Environmental Protection Agency has approved an aquifer exemption surrounding the deep disposal well at the Ross Permit Area of the Lance Uranium Projects.
In September 2015, the U.S. Nuclear Regulatory Commission will conduct a final pre-operational inspection of the project which will allow Peninsula to receive all the necessary approvals to allow first uranium production to commence in October.
Stage 1 production is expected to be circa 700,000 pounds per annum.
Wholly owned subsidiary Strata Energy Inc. successfully completed the DDW to a depth of 8,607 feet at the RPA.
Strata subsequently requested to the Wyoming Department of environmental Quality to include a portion of the Flathead aquifer that surrounds the DDW.
The EPA approved “a non-substantial program revision to include exemption of a portion of the Flathead formation surrounding the Ross DDW”.
Specifically, the depths and extent of the aquifer exemptions are “the portion of the Flathead formation one-quarter mile from the Ross DDW No.2 wellbore and at approximate depths of 8,277 to 8,565 feet below ground surface”.
The approval is based on the aquifer that does not currently serve as a source of drinking water, and the aquifer is situated at a depth or location which makes recovery of water for drinking water purposes economically or technologically impractical.
Peninsula managing director and CEO Gus Simpson stated, “The EPA deep disposal well aquifer exemption clears a significant regulatory milestone for the commencement of production at the Lance Projects”.
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