Peninsula Energy announces first uranium delivery

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Emerging uranium producer Peninsula Energy has announced that it has executed the first U3O8 delivery under its wholly owned subsidiary, Strata Energy Inc.’s 2011 sale and purchase agreement with a United States Utility.

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The company also provided an update on the progress at its Lance Projects located on the North-East flank of the Powder River Basin in Wyoming.

“On December 2, 205, in-situ uranium recovery operations began for the Ross Permit Area of the Lance Projects in Wyoming, USA,” said the company’s Managing Director and CEO, Mr John (Gus) Simpson.

“Production well flow-rates continue to be very good, uranium is being recovered and the second header house is being commissioned. Phase one full production will see a total of 7 header houses in operation.”

The company has in place four significant uranium concentrate sale and purchase agreements for a big chunk of production over the first five years of operations.

“These committed sales contracts substantially increase revenue certainty whilst allowing a significant amount of planned production to be free for future contracting in what is expected to be an environment of increasing prices,” Mr Simpson added.