Peninsula fires up Wyoming uranium play amid US tailwindsDoug BrightSponsoredThu, 22 January 2026 2:23PM
Timing, as they say, is everything – and Peninsula Energy appears to have found its groove just as the United States rediscovers its appetite for home-grown uranium.
The company has pushed another important lever at its Lance uranium project in Wyoming, kicking off acidification at Header House 16, complementing the existing solution feed to the project’s central processing plant (CPP) from Header House 14.
Both header houses are located within Peninsula’s mine unit MU-4 and the addition of Header House 16 into the feed line to the CPP from MU-4 has boosted the plans for a production reset.
The project began commercial operations in 2015 but paused in 2019 to transition production from a low-performing alkaline process to a low-pH, high-acidity in-situ recovery method. The shift, validated by a 2020-2021 field demonstration, improved recovery rates and operational efficiency, leading the company to roll out its reset plan.
Lance is one of the biggest uranium deposits in the US, hosting a resource of 58 million pounds (Mlbs) of yellowcake across its Ross, Kendrick and Barber areas. The company’s satellite Dagger project, a high-grade development, also hosts an inferred resource of 6.9 M lbs of yellowcake at a grade of 1037 parts per million (ppm).
Mineralised zones on site are subdivided into several mine units.
The mining units comprise a number of injection bores, which are used to inject acid into the 60-metre-thick resource down to a depth of up to 150m.
The acid may remain underground for several months, gradually dissolving the source material and releasing the uranium. The pregnant solution is then eventually brought to the surface through a central extraction bore.
Pumping of all injection and recovery solutions is controlled by a header house, of which there may be several within each mine unit, all eventually feeding to the central processing plant.
Key to a successful production profile, therefore, is the rate of flow from the extraction bores to the processing plant – and Header House 14 appears to be performing with aplomb.
Notably, the newly commissioned station, which began acidification in late December, has already delivered average flow rates of about 15 gallons per minute, comfortably ahead of the 12 gallons per minute assumed under the company’s reset plan.
Even more encouragingly, the chemistry is moving faster than expected, with pH levels of acidity falling rapidly from a natural pH level of 8.5 standard units (SU) to 3.48. The company says the acidification process still has a bit to go before reaching the more acidic sub-2.0 target required for effective uranium leaching.
The acidification process at the new Header House, which kicked off last December, is expected to continue for about three months, after which the uranium-bearing solution will be redirected to the CPP for processing.
In a nutshell, the takeaway is simple: the wellfield is behaving and it is moving towards the desired settings earlier than planned.
Mine Unit 4 is central to Peninsula’s revival story. It is forecast to account for about 60 per cent of the company’s uranium production across 2026 and 2027 and has been redesigned from the ground up after a number of difficulties that plagued Mine Unit 3.
The company’s modifications include fewer wells at a tighter spacing, coupled with revised maintenance plans, all designed to shorten acidification timelines and lift flow rates.
With Header House 16 now also underway and construction of further header houses scheduled through the March quarter, Peninsula is confident it can offset the previous weaker-than-expected production from Mine Unit 3. The company says it remains confident it can still meet its 2026 guidance of 400,000 to 500,000 pounds of yellowcake, despite subdued output in the December quarter, while the reset was being bedded down.
Behind the scenes, the Lance central processing plant is also edging closer to full stride. The facility, which was expanded and commissioned last year, delivered its first drums of dried yellowcake in a mid-September milestone, transforming Peninsula into a fully independent, end-to-end uranium producer in the US.
Permanent piping upgrades are nearing completion and commissioning work continues across the uranium stripping, precipitation and drying circuits.
Peninsula’s comprehensive reset has landed well. Alongside the transition to an acid rather than alkaline processing solution, legacy take-or-pay contracts have been unwound, revised production schedules are now in place and almost $70 million in fresh capital has been secured. Together with a new $15 million debt facility, the company finally has the breathing room it needs to reach full production.
The commencement of acidification at our second header house in Mine Unit 4 represents another important step in executing our production reset plan. The team is currently finalising the third header house, Header House 15, and we have a clear schedule in place to complete all six header houses within MU-4 ahead of schedule.
Peninsula Energy managing director and chief executive officer George Bauk
Peninsula’s rapid progress since rolling out its new plan has paid handsomely for punters. The company’s share price, which began its meteoric recovery from a 28c low in September, is now almost 230 per cent higher in just four months, hitting a peak today of 99.5 cents.
Meanwhile, the macro picture for yellow cake continues to dramatically improve. The US consumes about 50 million pounds of uranium each year, but produces only a fraction domestically.
Additionally, Washington has launched a formal review of nuclear energy, committed billions to enrichment capacity and has flagged measures to shore up critical mineral supply chains and uranium now sits firmly in the national interest.
For Peninsula, America’s renewed policy momentum has added serious heft to its operational progress. Backed by a 58-million-pound uranium resource, upside at its high-grade Dagger satellite deposit, early wins from Mine Unit 4 and a processing plant ready to scale, the company is shaping up as a credible domestic supplier as the US nuclear story heats up.
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