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Peninsula Energy Moves Closer To Completion Of Ross Licence Application Review

Peninsula Energy (ASX: PEN) is advancing towards meeting yet another milestone at its Ross In Situ Recovery (NYSEMKT:ISR) uranium project with the impending completion of a review of the company's licence application.

The United States Nuclear Regulatory Commission has advised Peninsula's wholly owned subsidiary Strata Energy that its responses to the Requests for Additional Information (RAI's) on the Ross Project have been deemed acceptable to complete the licence application review.

Importantly, this means the progress towards the issuance of a Source Material Licence continues as expected.

Peninsula and Strata Energy do not anticipate any delays to the licensing process despite the denial of its appeal to the NRC's Atomic Safety and Licensing Board's grant of an administrative hearing to a coalition of two public interest groups on behalf of a single landowner.

Gus Simpson, executive chairman, said:

"We are pleased that the RAI responses are deemed complete and the NRC licensing process is progressing as expected.

"The issues raised by these groups across the last three ISR project applications in Wyoming have been unsuccessful and all projects have had their licences granted".

Wyoming currently has five licensed uranium ISR mines.

Ross is the most advanced area at the Lance Project, located in the Powder River Basin in Wyoming, where Peninsula recently completed a Feasibility Study that upgraded the economic viability of the project.

Further upside for Ross is the acquisition of the site for the proposed central processing plant by Peninsula, announced earlier this year.

The 0.97 square kilometre (240 acre) site acquisition ensures the necessary owner's consent to mine required by the Wyoming Department of Environment Quality is now finalised.

The department will issue the Permit to Mine once Strata Energy lodges the financial surety.

Lance economics

The key to the Feasibility Study economics of Lance is a net present value (8%) of US$254 million compared to the initial feasibility for the Ross production unit alone of US$46 million.

The Expanded Economic Study reported a net present value (6%) of US$207 million. The main difference in the recent study is increased mine life and produced uranium.

The Feasibility Study was based on the March 2012 JORC Resource of 51.5 million pounds of uranium, across the Ross, Kendrick and Barber Production Units.

This assumes the conversion of 23.88 million pounds of the 36.78 million pounds of Inferred uranium resources to the higher confidence Indicated category or better.

Initial production of 750,000 pounds per annum will come from the Ross production unit, ramping up to a 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.

The Lance project has an initial mine plan based on 20 million pounds of recovered uranium.

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

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

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