Name and Location
Lance projects, Wyoming, US.

Client
Strata Energy, a wholly owned subsidiary of Peninsula Energy.

Project Description
The Lance projects have 312 line kilometres of identified roll fronts and an exploration target of 104-million pounds to 163-million pounds of uranium oxide (U₃O₈), which is in addition to the Joint Ore Reserves Committee- (Jorc-) compliant resource. These roll fronts span more than 50 km north to south and are open to the north, south and west. Peninsula has explored only part of this area in the last five years and has successfully delineated more than 53.7-million pounds of U₃O₈ Jorc-compliant resource.

An extensive optimisation study of the May 2012 feasibility study on the project has resulted in a significant reduction in capital and operating costs, which substantially enhance the economics of the project.

The operating parameters modelled in the optimisation study were the same as those applied to the feasibility study, namely the Ross, Kendrick and Barber production units feeding a central processing plant (CPP), with a permitted capacity of up to three-million pounds a year of U₃O₈. The first production unit will be at Ross, with a capacity of 750 000 lb/y. The Kendrick and Barber production units will be included sequentially and ramped up over several years to 2.2-million pounds a year at steady-state production.

Value
Initial capital costs are estimated at $69-million, inclusive of the CPP.

Duration
Total construction time is estimated at 12 months, with first commercial U₃O₈ production expected to begin in 2014, subject to final permitting.

Latest Developments
Strata has assembled a highly experienced team with specific production experience in in situ leach operations.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Peninsula Energy, tel +61 8 9380 9920 or fax +61 8 9381 5064.