(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.
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