Lance Projects

  • Lance Projects
  • JORC Code Compliant Resources
  • Uranium In-Situ Recovery
  • Karoo Projects South Africa

    • (Peninsula Energy 100%)

    The Company’s flagship Lance Project is one of the largest US uranium projects in size and scale and boasts a defined JORC (2012) Resource of 53.7Mlbs¹ U3O8. Lance is a modern, large-scale, long-life, constructed and fully permitted project and located in Wyoming, USA, a premier uranium and mining jurisdiction.

                                                                 Figure 1: Lance Projects Location, Wyoming, USA

    Lance comprises of the following areas:

    Ross (Production Area)

    • Fully licensed Uranium ISR production facility

    •          Estimated Resource of 5.9 Mlbs U3O8

    •          4.1 Mlbs estimated to be produced

    •          2 Previously operated Mine Units (MU-1 and MU-2), with potential for an additional 2-3 Mine Units

    •          MU-3 monitor well installation underway

    Kendrick (Production Area)

    •      Next sequential production area

    •          Amendments submitted to add Kendrick into the production licenses and permits

    •          State regulators deemed application administratively complete and commenced first-round technical review

    Barber (Exploration and Development Area)

    •          “Under-delineated” resource area

    •          Holds over 30 Mlbs of Inferred Resources

    •        Potential for resource growth and enhancement

    The Project is the only US-based uranium project authorised to use the low-pH ISR method and has been de-risked from a regulatory and technical perspective through completion of a Field Leach Trial, MU1A Field Demonstration and a Definitive Feasibility Study (DFS).

    The Ross and Kendrick August 2022 DFS confirmed Lance as a globally competitive uranium ISR operation and delivered the following key results:

    ROSS AND KENDRICK DFS RESULTS

     

    Estimated Life of Mine (LoM)14 years
    LoM Project Revenue (real) (US$ M)895.2
    Average Sales Price Received (US$/lb)62.38
    Average Price Received for Uncontracted Production (US$/lb)65.49
    LoM Operating Cashflow (before tax) (US$ M)527.1
    Investment to Reach Positive Cashflow (US$ M)60.0
    NPV8 (US$ M) (before tax)124.8
    IRR (%) (before tax)43%
    ASIC – All in Sustaining Cash Cost (US$/lb)39.08
    AIC – All in Cost (US$/lb)45.74

     

    Peninsula is currently evaluating and adapting the 2022 DFS to bring Stage 2 plans for in-house plant expansion and resin processing forward, enabling independent production of yellowcake from the outset. Moving directly to becoming an end-to-end yellowcake producer, is anticipated to deliver faster ramp to full capacity under a more efficient and capital effective operation, with expanded production capacity and a lower operating cost profile.

    Importantly, Lance is coming online during a period where the importance of nuclear as a critical element of the clean energy mix to meet aggressive decarbonisation targets continues to grow. Peninsula will be in a strong position to supply this market and as a key competitive advantage, be the only ASX-listed uranium company providing US production and direct market exposure.