Boss Energy (ASX:BOE) is hoping to increase the forecast production rate or mine life for its Honeymoon Uranium Project in South Australia off the back of additional ‘strong’ drilling results.
The $2.2 billion market capitalisation company says it will look to increase production at Honeymoon to more than 3 million pounds (Mlbs) per annum through a study.
Managing Director Duncan Craib says the increase in production is part of the company’s two-pronged strategy of ramping up production while increasing the inventory in preparation for the company’s next round of growth.
“This is aimed at generating strong cashflow while laying the foundations for increases in Honeymoon’s production, which will in turn drive further growth in cashflow while also enabling us to leverage existing infrastructure.”
Boss reports the study will include the Jason’s deposit, as well as the known satellite deposits of Gould’s Dam, Billeroo, and Sunrise. Results will be used to update satellite geological models in H1 2024, which will then feed into a resource update in H2 2024.
The company notes work for the resource update will form the basis of further step-out and infill drilling leading to a potential resource upgrade in 2025.
The study comes after Boss announced today (23 January 2024) it has posted ‘strong’ assays from its latest drilling program at the Jason’s deposit.
Results include uranium grades up to 3,221 parts per million (ppm) pU3O8.
Craib says: “These latest drilling results provide more evidence that the Jason’s deposit can play an important role in that growth strategy and help Boss increase its exposure to the uranium market as it continues to benefit from the highly favourable supply and demand fundamentals.”
Boss Energy is an ASX-listed uranium company which owns the Honeymoon Project in South Australia. The project holds a JORC resource of 71.67Mlbs with an average grade of 620ppm U3O8 using a cut-off grade of 250ppm.
As of 30 September 2023, Boss Energy had $63.118 million cash and cash equivalents at hand, according to its latest quarterly report. The company in January 2024 completed a $10 million oversubscribed and upsized share purchase plan (SPP).
Boss Energy received $29.6 million of applications, however, scale back of allocations have still been required.
Write to Adam Drought at Mining.com.au
Images: Boss Energy
