Peninsula Energy has officially commenced uranium production at its Lance Project in Wyoming, US, after a five-year hiatus.

The restart of operations on 18 December 2024 marks a significant milestone for Peninsula as it aims to become an independent producer of uranium yellowcake.

Production operations have resumed in selected areas of Mine Unit 1 (MU-1) at Lance, utilising a low-pH in-situ recovery (ISR) method.

The initial production stream is being channelled to the rebuilt phase one satellite plant ion exchange system for uranium capture.

Flow rates and grades are aligning with planned levels and are expected to increase as preconditioning progresses.

Captured uranium will be stored on ion exchange resin until the phase two plant area is commissioned in the first quarter of 2025.

Peninsula is focused on completing the resin elution and precipitation circuits by mid-January, enabling the first elutions and yellowcake precipitation.

Yellowcake filtration and drying circuits are scheduled for completion in February, with the first dry yellowcake product expected by early March.

Upon completion of phase two construction, the Lance Project will host a 5,000 gallons-per-minute uranium recovery ion-exchange process plant, capable of producing up to two million pounds per annum of dry yellowcake.

Peninsula will host an investor conference call in mid-January to provide updates on the production restart and future plans for 2025.

Peninsula managing director and CEO Wayne Heili said: “This is a very exciting moment for the team and our shareholders to have finally pressed the button on starting production. This has been years in the making, a lot of hard work and with a fair share of challenges, so we are grateful to the team involved and for the ongoing support of our shareholders.

“Importantly, Peninsula is now North America's newest fully independent uranium producer. We have restarted Lance at an opportune time, with the long-term fundamentals and demand for uranium incredibly strong, as nuclear energy grows into the leading and most reliable clean energy solution. Through Lance, Peninsula will provide a secure and sustainable uranium supply for an energy-hungry, low-carbon future."

Lance is touted as one of the largest independent near-term uranium development projects in the US. Peninsula has a decade of sales contracts with major utilities in the US and Europe.

Once fully operational, Lance will position Peninsula as a key supplier of uranium, playing a vital role in a clean energy future.