Peninsula Energy reports strong progress in ramping up uranium production at its Lance Project in Wyoming, with acidification exceeding expectations and key infrastructure developments on track. Supportive US government policies further enhance the company’s strategic outlook.
- Acidification underway at Header House 16 in Mine Unit 4 (MU-4)
- Flow rates at Header House 14 exceed reset plan targets, with pH reduction ahead of schedule
- MU-4 expected to deliver 60% of 2026-27 uranium production
- Central Processing Plant commissioning progressing with key upgrades
- US government initiatives bolster domestic uranium production prospects
Operational Progress at Lance Uranium Project
Peninsula Energy Limited (ASX, PEN) has announced continued momentum in its production reset plan at the Lance Uranium Project in Wyoming, USA. The company has commenced acidification at Header House 16 within Mine Unit 4 (MU-4), marking a significant step forward in its operational ramp-up. Acidification at Header House 14, which began in late December 2025, is already outperforming expectations with flow rates averaging around 15 gallons per minute, surpassing the reset plan assumption of 12 GPM. The pH levels are also dropping faster than anticipated, currently at approximately 3.48 S.U., moving steadily toward the targeted mining acidity of less than 2.0 S.U.
Strategic Importance of Mine Unit 4
MU-4 is pivotal to Peninsula’s near-term production ambitions, expected to contribute roughly 60% of the company’s uranium output for 2026 and 2027. The revised wellfield pattern designs implemented in MU-4 feature a denser configuration of production wells with closer spacing, aimed at accelerating acidification and enhancing recovery rates. Construction of Header House 15 is nearing completion, with acidification slated to begin in the first quarter of 2026, while work on Header Houses 17 through 19 is scheduled to start shortly thereafter. The company anticipates completing all six header houses in MU-4 by the end of September 2026, ahead of its original timeline.
Addressing Challenges in Mine Unit 3
While MU-4 advances steadily, Peninsula continues to manage operational challenges in Mine Unit 3 (MU-3), where acidification was temporarily paused in mid-2025 due to resin storage constraints linked to delays in the Central Processing Plant (CPP) expansion. However, the company expects that the earlier and more robust start-up of MU-4 will more than compensate for any production shortfalls in MU-3, keeping Peninsula on track to meet its uranium production guidance of 0.4 to 0.5 million pounds for calendar year 2026.
Central Processing Plant Commissioning and Upgrades
Commissioning activities at the Lance CPP continue to progress well, with fine-tuning of elution, precipitation, filtration, and drying processes underway. Notably, the installation of a water purification system aims to improve the quality of the final yellowcake product by reducing impurities. Additionally, replacement of corrosion-affected piping in Phase 1 of the CPP is on schedule and below budget, further supporting operational reliability as uranium volumes through the plant increase.
Favourable US Policy Environment
Peninsula’s operational advances coincide with a strengthening US government focus on domestic uranium production. Recent initiatives include a $2.7 billion funding commitment over ten years to enhance uranium enrichment capacity and supply chains, as well as an Executive Order aimed at reducing reliance on foreign sources for critical minerals, including uranium. These policy moves underscore the strategic importance of domestic uranium producers like Peninsula in supporting US energy security and the nuclear energy renaissance.
Managing Director George Bauk highlighted the significance of the MU-4 acidification progress and the company’s confidence in meeting production targets despite legacy issues in MU-3. The combination of operational improvements and a supportive regulatory backdrop positions Peninsula Energy well for growth in the coming years.
Bottom Line?
Peninsula’s strong MU-4 ramp-up and US policy tailwinds set the stage for a pivotal year in uranium production.
Questions in the middle?
- How will uranium grades and recovery rates evolve during the leaching phase in MU-4?
- What impact might ongoing challenges in MU-3 have on near-term production beyond 2026?
- Could further US policy measures introduce price supports or incentives benefiting Peninsula?