Lance Projects
Peninsula’s flagship Lance Project is one of the largest US uranium projects in size and scale and boasts a defined JORC (2012) Resource of 58.0 million pounds (Mlbs)¹ U3O8.
Lance is a modern, large-scale, long-life project, located in Wyoming, USA, a premier uranium and mining jurisdiction.
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.
Lance Project, Wyoming, USA
Lance currently comprises three areas:
Ross (Production Area)
- Fully licensed Uranium ISR production facility
- Estimated resource of 6.4 Mlbs U3O8
- Production estimate of 4.1 Mlbs
- Two previously operated Mine Units (MU-1 and MU-2), with potential for up to three additional Mine Units
- MU-3 under development, monitor well installation complete
Kendrick (Production Area)
- Estimated Resource of 19.8 Mlbs U3O8
- 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
- 31.9 Mlbs U3O8 of predominately Inferred Resources
- Potential for Resource growth and enhancement
- LoM plan does not currently include potential production from Barber
Ross & Kendrick Life of Mine Plan August 2023
In August 2023, Peninsula revised the Life of Mine (LoM) plan, with an accelerated development path to become a fully independent producer of uranium concentrate. The LoM plan is for the Ross & Kendrick production areas only, with commencement of production at Lance in late 2024.
The robust development plan includes an accelerated production ramp-up schedule, through the availability of a complete 5,000 GPM uranium ISR plant, licensed to produce up to 2 Mlbs per annum of dry yellowcake product.
With an optimised in-house processing plant, Peninsula is in a good position to take advantage of the additional Inferred 31.9 Mlb Barber resource, significantly extending the Ross & Kendrick LoM modelled 10 year production life, with a lower capital cost profile than an equivalent standalone operation.
Ross and Kendrick Life of Mine Plan Metrics
| Estimated Production Life | 10 years |
| LoM Project Revenue (real) (US$ M) | 988 |
| Weighted Average Sales Price used in the LoM (US$/lb) | 67.07 |
| Average Price Received for Uncontracted Production (US$/lb) | 72.62 |
| LoM Operating Cashflow (before tax) (US$ M) | 258.2 |
| LoM CAPEX (US$ M) | 285.8 |
| NPV8 (US$ M) (before tax) | 116.2 |
| IRR (%) (before tax) | 26% |
| AISC – All in Sustaining Cash Cost (US$/lb) | 42.46 |
| AIC – All in Cost (US$/lb) | 50.27 |
