Peninsula Energy Announce Uranium Production Steadily Increasing At Lance Projects

Peninsula Energy (ASX:PEN) announced an update on production and ramp-up at the Lance Projects in Wyoming, USA.
As quoted in the press release:

Highlights

• 29,000 pounds of U3O8 produced from Lance Projects during June quarter
• 7,000 pounds of U3O8 already produced from Lance wellfields in first 10 days of July
• Header houses 1 and 2 producing uranium at 105% of steady state target rates
• 55,000 lbs U3O8 delivered during June quarter at average price of US$62.80/lb

June Quarter
During the quarter ended 30 June 2016, 28,858 lbs U3O8 were extracted from the Lance Projects, an increase of almost 20,000 lbs U3O8 over the quarter ended 31 March 2016. A 7-day plant outage adversely impacted June production by approximately 3,000 lbs U3O8. Production for the June quarter was primarily from header houses 1 and 2. Whilst header houses 3 and 4 were successfully commissioned during the June quarter, meaningful quantities of uranium from both header houses commenced during July.
Average flowrates from extraction wells at header houses 1 and 2 are in excess of 20gpm (as per forecasts) and combined uranium head grade from these two header houses now exceed the life of mine average head grade of 38 mg/L. As a result, these two header houses are now producing uranium at 105% of steady state target rates.
A further 55,000 lbs of U3O8 were delivered during the June quarter under the Company’s existing long term uranium concentrate sale and purchase agreements at an average realised price of US$62.80 per pound. Uranium for these deliveries was purchased on-market.
Production Ramp-up
The rate of production continues to accelerate in early July with approximately 7,000 lbs U3O8 extracted from wellfields between 1 July and 10 July. The current rate of ramp up at the Lance Projects supports the targeted Stage 1 production level of 600,000 to 700,000 lbs per annum in the first half of 2017.

Peninsula Energy Managing Director/CEO, Gus Simpson, stated:

The last 5 weeks have seen the rate of uranium production increase dramatically and augurs well for the Lance Projects to meet the expectations of the Company going forward.

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