US-based Lance uranium project withdraws 2026 production guidance; 2027 target remains unchanged.

Peninsula Energy has announced the withdrawal of its 2026 production guidance for the Lance uranium project in Wyoming, USA, while reaffirming its 2027 production target of 500,000 to 600,000 pounds of U3O8 (equivalent to 192–231 tonnes of uranium).

Lance Central Processing Plant (Image: Peninsula Energy)

The project had been suspended for five years before resuming operations in 2024 using a low-pH in-situ recovery (ISR) method. The company stated that the production ramp-up at the Lance project has been slower than initially anticipated, rendering the previously announced 2026 calendar year production target of 400,000 to 500,000 pounds of U3O8 unachievable.

In-situ recovery—also known as solution mining or in-situ leaching—is a mining method that involves dissolving minerals from a suitable orebody using a leaching solution and pumping the mineral-rich solution to the surface for recovery. Leaching solutions can be acidic or alkaline, depending on the geological conditions of the ore. Acidic, low-pH solutions typically offer higher uranium recovery rates and lower operating costs but are unsuitable for aquifers containing significant amounts of acid-consuming minerals such as gypsum or limestone.

Prior to the 2019 suspension, the Lance project—like other ISR uranium mines in the US—utilized a high-pH process, but uranium recovery rates fell short of expectations. Following research and field trials, Peninsula Energy decided in 2022 to resume operations and switch to a low-pH recovery process. The company noted that the Lance project represents the first commercial-scale application of low-pH ISR uranium mining in the US, meaning there was limited domestic operational experience, workforce expertise, or industry knowledge to draw upon.

Peninsula Energy stated that while the project has made operational progress, it continues to face several challenges. These include longer-than-expected timeframes to resolve gas generation issues in certain wellfield areas—resulting in solution flow rates falling below plan—as well as the need for continued optimization of wellfield chemical conditions.

George Bauk, Managing Director and CEO of Peninsula Energy, expressed disappointment regarding the slower-than-expected production ramp-up and the withdrawal of the 2026 guidance, but highlighted the valuable operational experience gained during the Lance project's transition to large-scale low-pH ISR operations. He stated that the primary challenges encountered thus far center on wellfield hydraulics, solution flow, and chemical optimization, rather than the quality of the uranium resources or the efficacy of the low-pH recovery process itself.

It is reported that wellfield and uranium capture operations at the Lance project resumed in December 2024, and the expanded Lance Central Processing Plant produced its first batch of dry yellowcake the following September.