Peninsula Energy: Lance uranium Definitive Feasibility Study improves project economics

May 03, 2012 2:07 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Short Only

Contributor Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Peninsula Energy (ASX: PEN) has upgraded the economic viability of the Lance In-Situ Recovery


Projects in the United States following the results of a Feasibility Study at the project.

The recently completed Feasibility Study was based on the March 2012 JORC Resource of 51.5 million pounds of


, across the Ross, Kendrick and Barber Production Units. This assumes the conversion of 23.88mlbs of the 36.78mlbs of inferred U3O8 resources to indicated category or better.

Initial production of 750,000 pounds per annum will come from the Ross production unit, ramping up to steady state production of 2.2 million pounds per annum over three years with the inclusion of Kendrick and Barber.

Production is expected to feed into a Central Processing Plant with an expandable capacity of up to 3 million pounds per annum. Vanadium will not be produced in the early stages of production from Lance.

In terms of economics, the study highlighted:

- Net present value of US$252 million (an 8% discount rate)

- Initial capital cost of US$78 million, including Central Processing Plant

- C1 cash costs of US$12.94 per pound, excluding Vanadium credits

- Steady state total production, Central Processing Plant and production unit expansion, ongoing wellfield development and closure costs of US$36.60 per pound

The Feasibility Study has optimised the engineering and operational aspects of the Definitive Feasibility Study, while taking into account the updated JORC Resource.

Lance progress

Peninsula's Lance project, situated in the Powder River Basin in Wyoming, U.S., has an initial mine plan based on 20 million pounds of recovered



Importantly, there is plenty of potential for further exploration upside within the Lance project area.

The Feasibility Study will form the basis for the financing of the Lance projects, with proposals for project development financing already received. These proposals are being progressed.

Environmental bonding is expected to be lodged in the June quarter of 2012, with the aim of receiving a Permit to Mine from the Wyoming Department of Environmental Quality shortly after.

Subject to regulatory approvals, the Lance Projects remain on the road to


production in 2013

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.