- Peninsula Energy (ASX:PEN) has a new uranium play – the Dagger project
- Dagger is located near its existing advanced stage Lance project in Wyoming, USA
- Production at Lance will restart in late 2024
- Dagger boasts an initial resource of 6.9 million pounds of uranium
- The company will undertake resource upgrade drilling in FY24
- Shares last traded at 12 cents
Having spent US$800,000 to acquire all the rights comprising it, Peninsula Energy (ASX:PEN) has announced the creation of a new uranium project this morning.
The so-called Dagger project is located in Wyoming, USA, 20 kilometres northeast of an existing Pensinula-led uranium play called Lance.
In late 2022, the company raised $67 million to restart the Lance project across both an equity raise and a placement.
Lance is an advanced-stage development where production is set to recommence in late 2024. It was bestowed with a definitive feasibility study (DFS) back in August of 2022.
Introducing Dagger
The Dagger acreage is already home to an existing mining operation with uranium successfully produced in its history.
It graces with its presence in Crook County, Wyoming, in an area called the North Black Hills district.
An underground mine called Hauber operated by Homestake Mining Company was once present at the northern end of the Dagger acreage.
Slowly accumulated over the years
Peninsula has been slowly working towards building up the project for years, comprised of multiple claims from the Feds and from private vendors respectively.
“We are very excited to complete this long-term acquisition initiative … which provides [us] with an exciting opportunity,” Peninsula CEO Wayne Heili said.
“Buoyed by the robust uranium market that provides a supportive environment … Dagger perfectly complements the Lance projects, which once in production, will be one of the largest … in the United States.”
Uranium prices recently hit pre-Fukushima highs. All in all, the company paid US$800,000 to establish the Dagger project.
Existing mineral resource
The boundaries for the project cover some 4140 acres and will be subjected to an FY24 drilling campaign.
That campaign will aim to boost the project’s existing 6.8 million pound uranium resource.
The company says its new project overall expands significantly exploration and development growth upside potential.
PEN shares last traded at 12 cents.