Peninsula Energy achieves qrtly increase in uranium prodn. at Lance projects

By Tharun George / October 18, 2018 / tinyurl.com / Article Link

Peninsula Energy Ltd (ASX:PEN) has achieved an 8% increase in production from its Lance Projects in Wyoming, US during the quarter ended September 30 2018, compared to the previous quarter.

The increase in production is partly the result of the completion of a dried pounds reconciliation by the toll milling contractor for the period April 2018 to September 2018, as is standard industry practice during the term of toll milling agreements.

This resulted in an increase of about 10,000 pounds U3O8 (triuranium octoxide) attributable to Lance production in the June and September quarters.

 

A drying campaign was conducted during the September quarter with a total of 30,835 pounds U3O8 dried and drummed.

Post the end of the quarter, on October 1 2018, Peninsula made a scheduled sale to a customer of 100,000 pounds U3O8 (Lance production: 85,000 pounds, Market source: 15,000 pounds).

This was the company's final delivery obligation for the 2018 calendar year.

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Peninsula managing director and chief executive officer Wayne Heili said: "Production attributable to the September quarter exceeded our expectations following our decision in May to suspend alkaline operations in Mine Unit 1.

"I am pleased that we continue to meet or exceed our targets.

"This applies not only to production, but also extends to the progression of the activities associated with our low pH transition at Lance aimed at reducing costs and bringing production back up to plant rated capacities."

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While the production for the September quarter exceeded the guidance range (22,500 to 27,500 pounds U3O8 set in May 2018), Peninsula expects production in the December 2018 quarter to be at the low end of the guidance range following an equipment failure inside the processing plant.

The company intends to make repairs over a 1 to 2 week period, reducing the ability to produce during this period.

Guidance for the financial year ending June 30, 2019 which was also set in May 2018, remains unchanged at 90,000 to 110,000 pounds U3O8 as the company transitions the operations to low pH.