Boss Energy (ASX:BOE) has been awarded 4 ‘highly prospective’ exploration tenements from the Government of South Australia under a mineral rights sharing arrangement with copper developer Coda Minerals (ASX:COD).
Boss Energy, which has a $1.66 billion market capitalisation, says these tenements cover a land area of 3,184km-square and form the Kinloch Project, which is only 130km south of its Honeymoon Uranium Mine.
These tenements were applied for as part of an exploration release area (ERA) process covering overlying Cenozoic Murray basin sediments in eastern South Australia.
The company notes it is targeting paleochannel sediments of the ‘Renmark Group’, which are broadly analogous to the Eyre Formation within the Lake Eyre Basin to the north of Honeymoon and other Boss-owned uranium deposits, including Jason’s, Gould’s Dam, Billeroo and Sunrise.
Boss says Renmark has never been targeted for uranium and represents a ‘highly promising’ new frontier for uranium exploration.
Both Boss and Coda will now progress the mineral rights sharing arrangements under which Boss will be the operator for uranium exploration and entitled to 100% of the uranium rights.
Meanwhile, Coda will be the operator for base metals exploration and be entitled to 100% of the base metal rights.
It is expected that the parties will enter into a mineral rights arrangement on customary terms.
Stakeholder engagement will now begin in preparation for on-ground exploration activities, which will feed into the planning for significant regional geophysical surveys designed to define basement architecture and potential paleochannel sequences.
Addressing the application, Boss Managing Director Duncan Craib says: “We sincerely thank the Government of South Australia for entrusting this exceptional exploration acreage to Boss and Coda.
“Boss will apply its wealth of exploration knowledge and in-depth understanding of uranium to the Kinloch Project area with the aim of establishing a new uranium province“
Boss has a thorough understanding of the geology style and its uranium potential due to its striking similarities with the geology at Honeymoon and surrounding areas.
Boss will apply its wealth of exploration knowledge and in-depth understanding of uranium to the Kinloch Project area with the aim of establishing a new uranium province.”
Boss Energy is a uranium specialist focused on the restart of its Honeymoon Project in South Australia.
The company has increased the JORC resource at Honeymoon from 16.57 million pounds (Mlbs) to 71.67Mlbs since project acquisition in December 2015.
Coda Minerals is a copper explorer and developer focused on uncovering minerals leveraged to the global energy transformation through electrification and the adoption of renewable energy technologies.
Boss Energy had $88.940 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Boss Energy
