Peninsula Energy Resumes Yellowcake Production at Wyoming Uranium Site
In a significant development for Peninsula Energy, the company has reactivated its Lance uranium operation in Wyoming, USA, with the central processing plant (CPP) now producing dried yellowcake once again. This milestone follows the installation and commissioning of replacement agitator assemblies in both precipitation tanks, which has restored the final stage of the processing circuit to full operational capacity.
Peninsula Energy has kept its calendar year 2026 production guidance steady at between 0.4 and 0.5 million pounds of uranium, supported by a robust nameplate plant capacity of 2.0 million pounds per annum. The restart comes after a mid-February update revealed incorrect installation of the dual precipitation circuit agitator assemblies, necessitating a temporary shutdown during the early ramp-up phase. Fortunately, the rectification was handled as a warranty claim under the company's engineering, procurement, and construction contract.
Optimisation Efforts During Downtime
During the plant's offline period, Peninsula Energy utilised the downtime productively by implementing a series of improvements and optimisation works across the facility. These included progressing coating work on ion exchange and elution tanks in phases one and two, as well as installing a small reverse-osmosis (RO) unit to enhance process water quality for filter press wash cycles.
The newly installed reverse osmosis unit is designed to improve the quality of the final yellowcake by removing excess sodium, while also reducing the risk of corrosion on plant equipment. This upgrade is part of Peninsula's broader operational "reset" at Lance, which focuses on shifting from alkaline chemistry to an acidic leaching system. This change aims to boost recovery performance and product quality, while mitigating sodium-related processing issues.
Enhanced Recovery and Cost Reductions
The transition to acidic leachants has led to a dramatic increase in peak uranium grades, averaging nearly one gram per litre, and has improved overall recoveries to over 90 per cent. Additionally, this shift has resulted in lower operating costs, as acidic leaching can offer greater efficiency than alkaline methods at certain sites. The Lance project's geological compatibility with acidic solutions has likely contributed to these benefits, allowing for faster processing of uranium minerals.
Progress in Mine Unit 4
On the wellfield side, momentum continues to build in Mine Unit 4, which serves as the key growth engine in Peninsula's production reset plan. Uranium-bearing solution from Header House 14 in Mine Unit 4 was sent to the plant in late March and is now being captured on resin in the ion exchange columns. Early data is encouraging, with an average head grade into the plant of 63.9 milligrams per litre (mg/l) since connection, surpassing historical grades from previous alkaline chemistry operations.
Peninsula Energy reports that the grade uplift occurred rapidly, within one week of entering production after only three pore volumes, with targeted peak average header house grades expected after four to five pore volumes. The company is continuing to acidify additional header houses in Mine Unit 4, aligning with its reset plan as it works towards a stabilised, steady run-rate for the remainder of the year.
Future Outlook and Operational Confidence
With the processing plant back online, production guidance intact, and Mine Unit 4 showing promising progress, Peninsula Energy appears to have its Lance ramp-up back on track. The company's focus now lies in maintaining smooth operations in resin loading, precipitation, and drum-filling sequences as it aims to expand its role in domestic US uranium supply.
George Bauk, managing director and chief executive officer of Peninsula Energy, commented: "The successful recommencement of precipitation and yellowcake production at the Lance CPP is an important milestone for the Company. The team responded quickly and effectively to resolve the installation issue, while maintaining wellfield operations and progressing other optimisation activities across the plant."
