Australian uranium developer Peninsula Energy Limited has hit a pivotal operational milestone at its flagship United States project, keeping it firmly on course to commence production within the next fifteen months.
Acidification Switch Flicked at Key Wyoming Deposit
Through its wholly owned subsidiary Strata Energy Inc., the company has initiated the acidification process at Header House 14 within the strategically vital MU-4 deposit at the Lance project in Wyoming. This crucial step follows the receipt of formal injection approval from the Wyoming Department of Environmental Quality’s Uranium Recovery Program.
The acidification phase, which is expected to last approximately three months, is a gateway to initial uranium production. Once the target acidity level, measured as a low pH, is achieved, uranium-rich fluids will be directed to the project's Central Processing Plant (CPP) for extraction and conversion into yellowcake.
Construction on associated Header Houses 16 and 15 for MU-4 is advancing as planned. Acidification at Header House 16 is slated to begin in the coming weeks, with Header House 15 expected to follow in the March quarter of 2026.
Optimised Design Drives Production Forecast
The MU-4 area is central to Peninsula's near-term output, comprising six header houses that are forecast to contribute around 60 per cent of the company’s total uranium production for 2026 and 2027. This aligns with the production reset design unveiled by the company in August.
Peninsula has implemented an optimised, low-pH in-situ recovery operation for sustainable production at MU-4. Building on experience gained from the earlier MU-3 phase, the company has refined its well-field design. Each header house now features approximately 30 production wells, with a 20-metre spacing between production and injection wells, aiming for faster acidification at a target pH of two.
This revised configuration is projected to recover about 80 per cent of the recoverable uranium within 13 to 14 months per header house. Pump tests in MU-4 have already indicated flow rates significantly higher than those in MU-3, exceeding earlier conservative assumptions.
"The commencement of acidification within Mine Unit 4 is a significant milestone to conclude the year," said Peninsula Energy's Managing Director and CEO, George Bauk. "Mine Unit 4 incorporates the optimised well-field design within a mining area that is demonstrating strong flow rates, which we expect to be representative of the broader Kendrick mining area."
Plant Upgrades and Firm Production Timeline
Meanwhile, commissioning activities are gaining momentum at the Lance Central Processing Plant. Operators are fine-tuning the leaching, precipitation, filtration, and drying circuits. The company is also integrating a water purification system to remove excess sodium, which is intended to deliver a cleaner, higher-quality dried yellowcake product.
In preparation for the more acidic process fluids, the company is replacing corrosion-affected pipes from the project's first phase with fibre-reinforced plastic, proven to be more effective. This piping work is scheduled for completion next month, ahead of production flows from Header House 14.
Peninsula Energy reaffirms it remains on track to achieve its 2026 uranium production guidance of 0.4 to 0.5 million pounds, consistent with the ongoing ramp-up schedule for the Lance project.
