Wholly owned U.S. subsidiary Strata Energy Inc. has successfully completed the deep disposal well (DDW) for the stage 1 Lance In-Situ Recovery (NYSEMKT:ISR) project.
Drilling of the DDW commenced in March 2015 and was drilled to a target depth of 8,607 feet ahead of schedule.
This is significant as it was the major cost over-run risk to the Project but it was completed at a cost of US$3.3 million.
Significantly, other project start ups in Wyoming have had to complete up to three DDW's before achieving the required disposal rate.
In May, Peninsula started the application process to list its shares on the New York Stock Exchange (NYSE-MKT), giving it access to the world's largest capital market and institutional fund managers.
Strata Energy Chief Executive Officer Ralph Knode said: "Successful completion of the deep disposal well marks a significant milestone in the construction and development activities for the Lance Projects.
"Also completion of the DDW earlier than scheduled allows the project team to focus on the remaining CPP construction, production wellfield development and pre-operational readiness activities."
An 18-hour performance test of the DDW demonstrated an injection rate of 35 gallons per minute (NYSE:GPM), well in excess of the 20 gpm requirement for stage 1 operations.
The 35 gpm injection rate was achieved using a pump pressure of only 27 pounds per square inch (NYSE:PSI) while the well is approved for pumping pressure of up to 1,000psi. Simulation modelling also confirmed the expectation that the DDW will be available for approximately 10 years use.
The Central Process Plant (NYSE:CPP) construction and wellfield development activities continue to progress to both cost forecasts and time schedules. All ion exchange columns and pressure vessel tanks have been installed in the CPP.
Cladding of the building housing the site workshop, laboratory and administration office have been completed and are now undergoing internal build-out and finishing.
The third round of wellfield baseline water sampling for Ross Permit Area Mine Unit 1 was completed on June 1.
The fourth and final round of baseline water sampling will be completed on June 15, enabling the wellfield package to be submitted to the U.S. Nuclear Regulatory Commission and Wyoming Department of Environmental Quality for review and final approval prior to the commencement of operations.
With the company moving to list on the NYSE-MKT with an initial application information to the NYSE as the first step in the listing process, it is a good time to be a Peninsula Energy investor.
Peers listed on a U.S. stock exchange have increased liquidity compared to their non-U.S. exchange by a factor of 4 to 7 times and outperform their non-U.S. listed companies by 2-3 times enterprise value per pound of measured and indicated resource.
After raising $69.4 million in February 2015 to underwrite Lance into production it is on track and budget to be the next uranium producer.
The Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.
The Project is scalable and can ramp up production to maximum permitted levels (3,000,000 pounds of U3O8 per year) as demand and pricing for U3O8 increase and maintain a mine life that will span many decades.
Proactive has estimated a 12-18 month price target of $0.16.
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