Peninsula Energy has announced that it will begin commercial mining operations at its Lance in-situ recovery (ISR) uranium projects in Wyoming, US, in the second half of 2012.

Peninsula Energy executive chairman Gus Simpson stated that the start of mining operations at Lance is indicative of the completion of the pre-development stage.

"With financing advancing well, and permitting progressing on schedule, we are confident that Peninsula will be a uranium producer in the near-term," said Simpson.

Last year, the company announced the results of the definitive feasibility study (DFS) on the Ross project and expanded economic study (EES) on the greater Lance projects, which stated the technical and economic viability of an ISR mining operation at the site.

Since the completion of these studies, Peninsula has commissioned Trec, an engineering firm based in Wyoming, to complete an owners review and optimisation study of the DFS and EES.

The revised feasibility study will form the basis of a debt-funding proposal to several financial institutions who are currently reviewing the Lance projects.

A funding package is expected to be finalised within the financial year.

First production is targeted next year, subject to final permitting and project financing.