Peninsula Energy is increasing its uranium resource by 19.6% in the Lance Life-of-Mine area

Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has updated its mineral resource estimate (MRE) to 58 million pounds of U3O8 at its flagship Lance Projects in the leading US uranium mining jurisdiction of Wyoming.

Significantly, MRE within the Ross and Kendrick Life-of-Mine (LOM) study areas increased by 19.6% to £26.2 million U3O8.

There was a 50% increase in inferred mineral resources within the Kendrick Production Area and a 6.4% increase in resources in the soon-to-restart Ross Production Area.

Important time

The updated MRE comes as uranium’s importance to the green energy mix is ​​recognized and the US takes steps to ensure a reliable supply.

As Wayne Heili, managing director and CEO of Peninsula, explains: “This resource growth comes at an opportune time as the U.S. government continues to take meaningful action to revive its domestic uranium production and nuclear fuel cycle capacity, while the company continues to prepare for the resumption of production. of commercial production at our US-based Lance Projects.”

Read more: A ban on Russian uranium imports bodes well for these ASX juniors

Increased resources

The Lance MRE, which assumes mining via in-situ recovery (ISR) methods, has been updated based on 2023 drilling results in the Ross and Kendrick areas of the project.

The MRE is based on a database of more than 4,500 historic boreholes, along with more than 4,350 boreholes completed on the Peninsula between 2008 and December 31, 2023.

This update saw the total Lance MRE increase by 7.8%, from £53.8m to £58m.

The increase in current JORC compliant MRE primarily relates to an increase in resources identified within Kendrick following a 66-hole drilling program in 2023, targeting an area of ​​Kendrick previously identified with long-range drilling.

Inferred resources within Kendrick were increased by 50% from 7.6 million to 11.5 million pounds U3O8, while estimated resources within the Ross resource area increased from 6.0 to 6.4 million pounds U3O8.

The mineral area estimate of the Barber resource remained unchanged as no drilling occurred within Barber’s boundaries during the period.

“We are very excited to share this resource update,” said Heili. “Our 2023 drilling programs generated positive results in terms of increasing resources within the near-term production areas at Ross and within the medium-term development areas at Kendrick.”

The company is planning additional delineation and development drilling programs in the Ross and Kendrick areas this year that will inform the preparation and publication of future updates to the Lance Projects’ JORC-compliant MRE.