Boss Energy (ASX:BOE) receives new ‘high-grade’ drill results that potentially point to growth in the mine life and production rates at the Gould’s Dam deposit within the Honeymoon Uranium Project in South Australia.
The company, which has a market capitalisation of $1.19 billion, says its twin hole validation drilling has confirmed an overall upgrade of historical drill results.
With the current life-of-mine (LOM) plan at the Honeymoon Project being based on 50% of the existing JORC resource, Boss says the combination of the resources sitting outside the mine plan and the latest drill results suggests there is potential to grow the production rate and mine life of the project.
Boss reports ‘exceptional’ new drilling results include drillhole WRM0013 with 5.25m @ 3,744 parts per million (ppm) pU3O8 from 102.5m, plus 3.25m @ 1,150ppm pU3O8 from 110.25m; and drillhole WRM0020 with 2.75m @ 3,693ppm pU3O8 from 113.25m plus 1.25m @ 2,277ppm pU3O8 from 117.75m.
Commenting on the results, Boss Energy Managing Director Duncan Craib says: “These strong drilling results are in line with our strategy to increase the inventory at Honeymoon. This will in turn enable us to grow the mine life and production rate, increasing cashflow and leveraging our existing infrastructure.
“The results from new drillholes within the resource surpass our expectations in both grade and thickness of the mineralisation”
The results from new drillholes within the resource surpass our expectations in both grade and thickness of the mineralisation.
To put it into perspective, our cut-off grade is 250ppm, and while we could mine at lower grades, there are numerous cost and operational benefits to leaching higher-grade material from continuous thicknesses.
Primarily, less ore has to be leached to extract the same amount of contained uranium, which typically results in lower operating costs and increased operating margins. The data also enables us to improve our exploration models for the region and strongly suggests that future exploration programs have the potential to add to the existing mineral resource.”
The current drilling program is continuing at Gould’s Dam, with further twin/infill drilling planned within the indicated resource area, alongside investigative drilling of promising areas peripheral to the current indicated resource.
Once the current work at Gould’s Dam is completed, a resource infill drilling program will begin at the Jason’s satellite deposit.
Boss Energy is an ASX-listed uranium company focused on the restart of the Honeymoon Uranium Project in South Australia.
As of 30 June 2023, the company had $88.94 million cash and cash equivalents at hand, according to its latest quarterly report published on 25 July 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Boss Energy
