The updated Life of Mine (LoM) model aims to bypass third-party processing risks through a complete processing process that will result in the production of uranium yellowcake.

Peninsula's managing director and chief executive, Wayne Heili, expanded on the full cycle decision: "Our expert team has revised the Ross and Kendrick production area LoM model to assess the impact of expanding the process plant with additional ion exchange, elution, precipitation, and product drying functionality installed from the commencement of production."

The total resource base for the Ross and Kendrick areas has been pegged at 21.8 million pounds (Mlbs) with a 10-year mine life. Additionally, Peninsula expects to produce up to 2Mlbs of U308 (dry yellowcake) annually.

Also contained within the Lance project area is the Barber zone, which has a resource base of 31.9Mlbs.

Rising uranium price

Peninsula is the latest US-focused uranium miner to begin fast-tracking to production. The US uranium renaissance was reflected in a late August report highlighting a 196% jump in US production.  

Despite the triple-digit increase in output, the US continues to import the vast majority of the U3O8 it needs for nuclear reactors. However, rising U3O8 prices incentivise new and idled production.

The spot U3O8 price is currently sitting at a year-to-date high of US$58.57/lb.

"Peninsula has a unique competitive advantage in being the only ASX-listed, US-based uranium company authorised to use the industry-leading low pH ISR method. Based on the advanced development stage of the project, Peninsula has a rapid pathway to complete the facility additions and to return Lance to production in late calendar year 2024," said Heili.