Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has kicked off key preparatory activities designed to facilitate an accelerated re-start of production operations at its flagship Lance Project situated in Wyoming, USA.
The company is currently analysing the data obtained from the MU1A low-pH in-situ recovery (ISR) field demonstration to draw conclusions and evaluate input parameters for updating operating and process capital cost assessments.
Notably, the board has approved a supplementary budget of US$3.4 million to be invested in the early preparatory works program for the Lance restart, should a final investment decision be approved.
“Pivotal year”
Commenting on the recent developments at Lance, Peninsula managing director and CEO Wayne Heili said: “We made significant developmental strides at Lance in 2021 with the early completion of the MU1A Field Demonstration.
“The year 2022 is a pivotal year as we advance the project preparations in parallel to completing our technical assessment studies.
“The early preparatory works budget is a modest but important investment that can lead to an accelerated resumption of production.
“We want to position Lance for the best opportunity to resume commercial production operations quickly, efficiently, and successfully, in the event that a final investment decision to restart the project is made in the coming year.”
Forward plan
Peninsula is progressing a detailed technical evaluation of MU1A Field Demonstration performance, with an expected completion date by the end of the March quarter.
The early preparatory works program will see the following key workstreams undertaken:
- preparation and operational readiness activities in Mine Units 1 and 2;
- commencement of Mine Unit 3 drilling activities; and
- front-end engineering and design for low pH ISR process modifications.
Encouragingly, Peninsula’s project staffing is planned to be expanded to 37 employees, up 28% by the end of the June quarter.