Name of the Project
Lance Projects – Ross and Kendrick production areas.

Location
Wyoming, in the US.

Project Owner/s
Peninsula Energy.

Project Description
A definitive feasibility study (DFS) completed on the Ross and Kendrick Production Areas at Lance in August 2022, based on a total resource base of 21.8-million pounds of uranium, has confirmed a globally competitive uranium in situ recovery (ISR) operation.

The DFS envisages a “capital efficient” two-stage project. Key results from the DFS include life-of-mine (LoM) production of 14.4-million pounds of uranium, with steady-state production from Year 4.

Stage 1 involves the transition of the current facility operations to achieve production at a nameplate rate of 820 000 lb/y of uranium. The nameplate capacity has been revised downward from 1.15-million pounds a year, owing to the planned reconfiguration of the ion-exchange section of the Ross plant.

Stage 2 will result in the expansion of the Ross plant facilities to a nameplate capacity of two-million pounds a year, the addition of back-end plant processes to generate a final yellowcake product, rather than loaded resins, and the addition of corresponding new wellfield capacity to produce at a steady-state rate of two-million pounds a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $125-million and an internal rate of return of 43%.

Capital Expenditure
LoM capital expenditure is estimated at $290.6-million.

Planned Start/End Date
Not stated.

Latest Developments
The Lance projects site team has been actively engaged in preparations to systematically return the project to commercial production.

The company has substantially completed the engineering and design work for the process changes required to transform the operations to become a low-pH ISR facility. Items with longer lead-time have been ordered with deliveries expected during the first quarter of 2023.

Ongoing plant modifications are progressing on schedule with the expectation that the recovery plant modifications will be completed in advance of the date needed.

Contractors for the facility modification works are being screened and prequalified. Bids will be solicited in early January 2023. Limited circulation of low pH solution and oxidant was established between Mine Unit 1 and the process plant in December.

The production stream is being chemically fortified at the plant and returned to the well field where it is injected into uranium-bearing horizons. No uranium will be recovered in the ion-exchange system until the production stream reaches chemical target objectives and the process plant modifications are completed.

The flow rate of the circulating stream will be ramped up throughout the first quarter of 2023, as equipment and supplies are received and installed at the site.

Commercial uranium production grades within the precirculated wellfield areas are expected to be achieved by late in the quarter and plant recovery operations will start at that time.

Key Contracts, Suppliers and Consultants
Western Water Consultants (DFS).

Contact Details for Project Information
Peninsula Energy, tel +61 8 6263 4461 or email info@pel.net.au.