Peninsula Energy has had to delay its Lance uranium project due to its resin processing provider Uranium Energy (UEC) pulling out.
The company will now accelerate its own development of a production plant to produce yellowcake product and align the plan with the restart of production at Lance.
Initial analysis undertaken by Peninsula has indicated that this revised plan should deliver a faster ramp-up to full capacity.
“Faced with the unexpected challenge, we are now recalibrating our business plan to operate independently from our industry peers and to bring forward the in-house capability to produce finished yellowcake,” Peninsula managing director and chief executive officer Wayne Heili said.
“While a delay to our planned restart is disappointing, we anticipate emerging with an expanded production capacity and a lower operating cost profile because of this endeavour.
“We are also evaluating an accelerated schedule towards full capacity. Analysis of the impact of this action on operational plans and funding requirements are underway and we will keep the market posted on key developments as they occur.”
The Lance project is Peninsula’s flagship project and is one of the largest US uranium projects in size and scale.
