Mining Intelligence and News
United States

Lance Mine

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Categories

Overview

Mine TypeIn-Situ
StageRestarting
Commodities
  • Uranium
Mining Method
  • Solution mining
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SnapshotPeninsula’s flagship Lance Project is one of the largest US uranium projects in size and scale. Lance is a modern, large-scale, long-life project, located in Wyoming, USA, a premier uranium and mining jurisdiction.

In July 2023, Peninsula received a termination notice from its resin processing supplier, prompting the company to accelerate Stage 2 plans for an in-house backend facility to process resin and produce yellowcake. This shift delayed the production restart but enabled Peninsula to become a fully independent producer, mitigating third-party supply risks. A revised production and Life of Mine (LoM) plan was released in August 2023, reflecting the new strategy. By May 2024, the EPC contractor began earthworks for the expanded CPP, which will include enhanced ion-exchange capacity and new processing circuits.

As of November 2024, site preparations at the Lance Project continue to progress towards recommencement of production operations in December 2024.
Latest NewsPeninsula Energy: Commencement Of Production At Lance Project     December 19, 2024

Owners

SourceSource
CompanyInterestOwnership
Peninsula Energy Ltd. 100 % Indirect
Strata Energy, Inc. (operator) 100 % Direct
Peninsula Energy Ltd. holds 100% ownership of the Lance Project, which is operated through Peninsula's wholly owned subsidiary, Strata Energy Inc.

Contractors

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Deposit type

  • Sandstone hosted

Summary:

The deposits are epigenetic uranium roll-fronts. The Lance Project is located on the eastern periphery of the Powder River structural basin and on the western margin of the Black Hills Uplift. Geologic strata in the vicinity of the Lance Project comprise Cretaceous marine and marginal marine fluvial sediments belonging successively to the Pierre Shale Formation, Fox Hills Formation and Lance Formation within the Lance Project. Mineralization primarily occurs within the upper Fox Hills sandstone, although in localized areas there is some mineralization within the overlying Lower Lance sandstone. All the formations of interest (Lance, Fox Hills, Pierre) outcrop immediately east of the Lance Project at the Black Hills Monocline. The monoclinal feature caused a steepening of the dip (85°to 90°) to the east of the Lance Project, which resulted in the formations outcropping more abruptly than the 1° to 2° regional dip to the west.

Roll front deposits result from oxidizing groundwater migrating down gradient through regionally reduced sediments. Subsequent geochemical cells, produced by migrating groundwater, formed deposits through a dynamic process of oxidation, dissolution, transportation, reduction, and precipitation of uranium.

Previous geological modelling of the extensive downhole geophysical data has accurately defined the impermeable shales and mudstones that form the confining seals to the mineralised aquifers.

Geological interpretation
The sandstones that make up the various formations of the Lance uranium deposits were all deposited in a fluvialmarine environment as channel sand or overbank deposits. They are characterized by fining-upward sequences comprising thick, laterally persistent, tabular, sheet-like sandstones.

Uranium mineralization occurs preferentially in the sand units of the Fox Hills or lower Lance Formations, which were deposited under more reducing conditions. Within the sandstone, uranium distribution is controlled by basin- ward migration of chemical fronts that represent the interface between reduced and oxidized sandstone. The primary uranium-bearing minerals are uraninite, uranophane, autunite, or coffinite representing tetravalent and hexavalent forms in the reduced zone with H2S and organic carbon acting as the reducing agent to precipitate uranium.

Vanadium and, to a much lesser degree, selenium and arsenic are the main associated elements.

Dimensions
In plan-view, the deposits range from several hundred meters long to over 9,000 metres long with widths of between 10 metres and 80 metres wide. The high-grade cores of the roll fronts within the deposit range from about 2 metres to 10 meters wide and average 1.5 metres thick in section.

Mineralization occurs in several horizons with a total mineralized package of up to 60m in thickness.

Host sandstones dip at -1° to -2° towards the west and southwest.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Uranium U3O8 M lbs 1.515

Operational metrics

Metrics
Annual production capacity  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
All-in sustaining costs (AISC) Uranium (U3O8) USD  ....  Subscribe
C1 cash costs Uranium (U3O8) USD  ....  Subscribe
All-in costs Uranium (U3O8) USD  ....  Subscribe
Assumed price Uranium (U3O8) USD  ....  Subscribe
* According to 2023 study / presentation.

Project Costs

MetricsUnitsLOM Total
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Pre-tax NPV @ 8% $M USD  ......  Subscribe
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Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Dec 3, 2024
....................... Subscription required ....................... Subscription required Subscription required Nov 26, 2024
....................... Subscription required ....................... Subscription required Subscription required Nov 26, 2024
....................... Subscription required ....................... Subscription required Subscription required Nov 26, 2024

Aerial view:

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