Boss Energy (ASX:BOE) and First Quantum Minerals (TSE:FM) have begun a maiden diamond drilling program targeting basement-hosted base metal mineralisation within the Honeymoon tenements in South Australia.
Boss Energy, which has a $1.51 billion market capitalisation, says this 1,800m drilling campaign is being undertaken as part of an earn-in agreement with First Quantum and will be overseen by drilling contractor DDH1.
First Quantum has the right to earn a potential 51% interest in Honeymoon’s base metal endowment by funding $6 million worth of exploration, as well as a further 24% interest by sole-funding all base metals expenditure up to a decision to mine.
This deal enables Boss to remain fully focused to its core business of uranium exploration, development, and production, while having exposure at no cost to the ‘significant’ potential of a base metals exploration program led by a global major.
Expenditures incurred beyond this initial program will count towards First Quantum’s earn-in. The fresh drilling work will cover 3 ‘high-priority’ targets identified from ‘extensive’ analysis and modelling of geophysical and geochemical datasets alongside geological logging of historic drillholes.
The program is expected to take 4-6 weeks, with assays scheduled to be in hand within 1-2 months of program completion.
Boss Energy Managing Director Duncan Craib says this deal works hand-in-hand with its goal of becoming Australia’s next uranium producer.
“This agreement is an outstanding opportunity for Boss and our shareholders.
We have a global leader in FQM funding base metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia’s next uranium producer.”
“This agreement is an outstanding opportunity for Boss and our shareholders”
Boss Energy is a uranium-focused company actively working to restart operations at its Honeymoon Uranium Project in South Australia.
The project represents one of the few uranium projects globally that is ready to come on-stream in the early stages of what could be an emerging uranium bull market.
Boss Energy had $99.94 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
First Quantum Minerals is a Canadian listed group operating 8 mines across 4 continents producing copper, nickel, and gold, with an additional 3 mines under development.
Write to Adam Drought at Mining.com.au
Images: Boss Energy