Peninsula Energy (ASX: PEN) is continuing allowable pre-license construction activity at the Ross Permit Area of its Lance Uranium Projects in Wyoming ahead of its being issued the final Source Material Licence.
Work is continuing at the central processing plant building and administration facility sites.
Excavation has also started for the installation of the Containment Barrier Wall (CBW), located along the south side of the building and pond locations.
The CBW is a key part of site construction and on-site groundwater management. It will cause ground water to be directed via a drainage system into a vertical sump for subsequent pumping into an above ground diversion ditch.
Offsite fabrication of long lead items such as the Ion Exchange vessels and other pressure vessels is also well advanced.
Peninsula is well positioned to move quickly to full construction of the central processing plant and production well-fields upon issuance of the SML from the Nuclear Regulatory Commission, scheduled for late March 2014.
Subject to financing and SML grant, commencement of production at Ross is planned for the second half of 2014.
Ross will have production capacity of up to 1.25 million pounds per annum. It will be followed by Kendrick, ramping up over several years to a steady state 2.3 million pounds per annum.
Lance has an NPV of US$323 million and a capital expenditure of US$114 million to reach steady state production.
The company has also received a notice of initial substantial shareholding from ARSA, which holds 227,560,789 shares, or 6.997% of its voting power.
Peninsula had issued the shares to finalise the acquisition of a 74% interest in 36 prospecting rights covering 5,600 square kilometres of the main uranium-molybdenum bearing sandstone channels in the Karoo Basin in South Africa.
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