Peninsula Energy confirms it remains on track to meet its 2026 uranium production targets despite temporary mechanical setbacks at its Wyoming processing plant, with promising early results from its key MU-4 wellfield.
- Temporary agitator failures in precipitation circuits at Lance CPP
- Replacement parts ordered; resolution expected within 5-7 weeks
- Wellfield operations and uranium recovery continue uninterrupted
- MU-4 acidification ahead of schedule with record uranium grades reported
- Reverse Osmosis plant installation underway to improve product quality
Operational Setback at Lance CPP
Peninsula Energy Limited has disclosed a temporary mechanical issue at its Lance Central Processing Plant (CPP) in Wyoming, where agitator assemblies in the precipitation circuits were found to be incorrectly installed by the EPC contractor. This has led to both agitators being taken offline and replacement units ordered, with delivery expected within five to seven weeks. Despite this disruption, the company emphasises that the issue arose early in the ramp-up phase and will not affect its uranium production guidance for calendar year 2026.
Maintaining Production Momentum
Crucially, wellfield operations continue without interruption, preserving aquifer integrity and supporting ongoing ramp-up activities. The CPP’s significant installed capacity of 2.0 million pounds per annum provides operational flexibility, allowing uranium recovery to continue using available resin storage and fluid recirculation until the precipitation circuits are fully restored. Additionally, the downtime is being leveraged to complete recoating of ion exchange and elution tanks, enhancing processing capacity by the end of March.
MU-4: The Heart of Production Reset
Central to Peninsula’s production reset plan is the accelerated development of Mine Unit 4 (MU-4), which accounts for approximately 60% of forecast uranium output for 2026 and 2027. Acidification of Header House 14 (HH-14) is progressing well ahead of schedule, with pH levels nearing target and uranium-rich solutions expected to be fed into the CPP imminently. Early uranium grades are encouraging, with a record daily grade of 352 mg/L reported from a single well, significantly outperforming historical alkaline chemistry results from previous operations.
Similarly, acidification at HH-16 is advancing faster than planned, while HH-15 construction is on track to commence acidification in early March. These developments suggest that the low-pH chemistry approach is yielding superior uranium recovery rates, potentially reshaping the project’s medium- and long-term production profile.
Enhancing Product Quality
To address elevated sodium and chloride levels in the final yellowcake product, Peninsula has ordered a Reverse Osmosis (RO) plant to improve water quality used in the wash cycle. This low-cost, straightforward solution is expected to be operational within four to six weeks, underscoring the company’s commitment to meeting product specifications and market expectations.
Looking Ahead
Peninsula Energy’s Managing Director George Bauk expressed confidence in the company’s trajectory, highlighting the strong early performance of MU-4 and the swift response to the CPP mechanical issues. As the company moves closer to first uranium production from MU-4, it positions itself as a key domestic uranium supplier within the United States, a strategic advantage amid growing demand for clean energy resources.
Bottom Line?
Peninsula’s ability to navigate early operational challenges while advancing MU-4 development will be pivotal in fulfilling its 2026 production ambitions and strengthening its US uranium supply role.
Questions in the middle?
- Will the replacement agitator assemblies arrive and be installed on schedule without further delays?
- How will uranium grades evolve as acidification and leaching progress across MU-4’s header houses?
- What impact will the improved water quality from the RO plant have on final yellowcake market acceptance?