Peninsula begins next MU-4 acidification stage at Header House 16

Core Viewpoint - Peninsula Energy Ltd has initiated acidification at Header House 16 in Mine Unit 4, advancing its production reset plan and reporting progress in acidification at Header House 14, which is exceeding expectations in flow rates and pH reduction [1][2]. Production and Operations - Acidification at Header House 14 is currently at a pH of approximately 3.48 S.U., down from a natural level of about 8.5 S.U., with a target of less than 2.0 S.U. expected to be achieved in about three months [2]. - The company anticipates that uranium-bearing solutions from Header House 14 will be redirected to the Lance Central Processing Plant (CPP) for processing after acidification [2]. - The commencement of acidification at Header House 16 is a significant step in the production reset plan, with plans to finalize Header House 15 and complete all six header houses in MU-4 ahead of schedule [3]. - The Lance Project is on track to meet the CY2026 production guidance of 0.4 million pounds to 0.5 million pounds of yellowcake, with production volumes expected to increase from March 2026 [4]. Infrastructure and Design Improvements - Permanent piping upgrades within the CPP are nearing completion, on time and below budget, with commissioning activities ongoing and uranium volumes increasing [5]. - Revised wellfield designs for MU-4 include about 30 production wells per header house with 60 feet spacing, compared to 45 wells and 80 feet spacing in MU-3, aimed at improving production outcomes [6]. - Construction of Header House 15 is nearing completion, with acidification planned to start post-February 2026, and construction of Header Houses 17–19 scheduled for the March quarter of 2026 [7]. Challenges and Mitigation - Operational challenges in MU-3 have led to higher-than-expected wellfield maintenance requirements, but these issues have been addressed, and production delays are expected to be offset by the earlier start-up of MU-4 [8][9]. Commissioning and Process Enhancements - Commissioning at the Lance CPP is ongoing, focusing on water purification and piping upgrades to enhance the quality of the final dried yellowcake product [10][11]. Industry Context - The US Government has initiated a review of the nuclear energy industry, with significant funding announced to bolster domestic uranium enrichment services, indicating a supportive policy environment for the sector [12][13]. - A new Executive Order addressing imports of processed critical minerals, including uranium, suggests potential price floors to support domestic production [14].