Why the Peninsula Energy (ASX:PEN) share price is soaring 9%

The Peninsula Energy (ASX:PEN) share price is soaring in today’s trade, up 9%. We look at the ASX uranium share’s latest announcement.

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Peninsula Energy Ltd (ASX: PEN) shares are on the rise today after the company provided a market update. At the time of writing, the Peninsula share price is soaring 8.7% higher to 12.5 cents.

We take a look at the ASX uranium share’s latest announcement below.

What was announced?

The Peninsula share price is charging higher after the company provided an update on the MU1A low-pH field demonstration at its Lance Project in the US state of Wyoming.

Since Peninsula’s last update on 26 February, it reported it has made a number of test modifications that have delivered favourable results.

According to the release, the field demonstrations are “designed to provide key data on pattern configurations, pH adjustment, acid consumption and oxidants ahead of a decision to restart production” at the company’s project.

The latest field demonstration revealed that target pH levels were close to being achieved and the new oxidant was delivering results. This moves the company closer to its plans to recommence uranium production.

Commenting on the progress made, Peninsula’s CEO Wayne Heili said:

We are currently 8 months into the field demonstration and are happy with how it is progressing. Adjustments made since our February update have delivered positive results. We will continue to run the field demonstration through the first half of 2022 and the information gained will be invaluable as the company progresses the Lance Project toward a return to commercial production.

In further news driving the Peninsula share price, the company reported that its pilot uranium recovery circuit has been activated.

With leading world nations increasingly moving to reduce their carbon emissions in an effort to minimise global warming, uranium is gaining more attention as a potential power source. While issues like radioactive waste disposal remain a sticky point, uranium doesn’t release any greenhouse gases. That trend could provide tailwinds for ASX uranium shares such as Peninsula Energy.

Peninsula Energy share price snapshot

Despite today’s surge, the Peninsula share price remains down by nearly 11% over the past 12 months, compared to a gain of 31% on the All Ordinaries Index (ASX: XAO).

Year to date, Peninsula shares are up by around 4%.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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