ASX-listed Peninsula Energy announced on Tuesday that it had secured the final regulatory approvals required to start uranium recovery operations at the Kendrick production area within its Lance projects, in the US.

The Wyoming Department of Environmental Quality has granted both the amended permit to mine and the source materials licence, formally expanding the approved Ross project area to include Kendrick. Further, the US Environmental Protection Agency has approved an aquifer exemption for the Kendrick injection zone, completing the main permitting requirements.

“The receipt of the main permits and licences required to commence production from the Kendrick project area is a major milestone for Peninsula and a critical enabler for long-term growth at the Lance projects,” said MD and CEO George Bauk.

Kendrick, which hosts a Joint Ore Reserve Committee-(Jorc-) compliant resource of 19.8-million pounds of triuranium octoxide (U₃O₈), is the next sequential production area following Ross and forms a cornerstone of Peninsula’s production ramp-up plan. Together, Ross and Kendrick boast a combined resource of 26.2-million pounds of U₃O₈, supporting a decade or more of production-ready uranium supply.

Lance as a whole holds a Jorc-compliant resource of 58-million pounds of U₃O₈, making it one of the biggest in-situ recovery uranium projects in the US.

While uranium capture operations are currently paused owing to an issue with piping in Phase 1 of the central processing plant, Peninsula said it expected the issue to be resolved before commissioning of Phase 2 began. Construction activities on Phase 2 were progressing, with commissioning and handover expected in the coming weeks.

Peninsula restarted uranium production in December and is working on an updated production plan to optimise the roll-out of operations across the Lance projects.

“As we finalise the plan and prepare for its implementation, it’s important to emphasise that Peninsula continues to be underpinned by a flagship asset with significant potential, a committed leadership team, and exposure to an improving uranium market,” said Bauk.