Peninsula Energy Ltd's (ASX:PEN) uranium production ramp-up is continuing on schedule at the Lance Projects in Wyoming, U.S.
Gus Simpson, managing director and CEO, commented: "The Lance Projects continue to progress as forecast, Mine Unit 2 permeability looks good and production drilling is returning consistent support for the feasibility study estimates.
"The open house saw good attendance from Crook County officials, land owners and local residents.
"The plant and header house tours were very well received."
Production ramp-up
Uranium production from Lance is now sourced primarily from header houses 1, 2 and 3.
Header house 4 remains in early ramp-up phase, with header house 5 planned to be commissioned in October, header house 6 in November and header house 7 in December.
Circa 40,000 pounds of drummed U3O8 is scheduled to be delivered to a North American conversion facility on 15 September 2016 for storage prior to delivery under existing term contracts.
Flow rates
Average flow rates from extraction wells at header houses 1, 2 and 3 continue to be consistent with projections made prior to the commencement of operations.
Stage 1 steady state production will see up to seven header houses in simultaneous operation and the current rate of ramp up at the Lance Projects continues to support the targeted Stage 1 production levels.
High-grade uranium intercepts
During the period from June 2016 to present, Strata completed over 250 mining wells within MU2.
The mining wells are primarily for header houses 5, 6 and 7.
The well installation drilling has also intersected strong uranium mineralisation, testing the extent of the known ore zone and to date the results are in line with resource grade expectations for the ore body, a positive result ahead of the commencement of production and extraction of uranium from this mining zone.
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