Boss Energy Begins Drilling Program to Enhance Resources at Honeymoon Uranium Project in South Australia

Uranium company, Boss Energy Ltd (BOE), launches an infill and resource extension drilling program to boost resources at its Honeymoon Uranium Project in South Australia.

Boss Energy Ltd (BOE) has initiated an infill and resource extension drilling program at the Jason's and Gould's Dam satellite deposits, located within 10 km of the Honeymoon processing plant. The program's primary objectives are to enhance resource confidence, upgrade the existing inferred and indicated resources, and explore for additional mineralization potential.

Drilling Program Scope and Objectives

The drilling program, comprising 120 reverse circulation (RC) holes covering 12,000 meters, aims to increase resource confidence and upgrade the current inferred and indicated resources of 36. 2 million pounds (Mlb) of U3O8 at Jason’s and 9. 7 Mlb of U3O8 at Gould’s Dam. In addition to that, the program will test for potential mineralization extensions along the existing resources' strike and down-dip.

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It will also explore new targets identified through airborne electromagnetic (AEM) surveys. The drilling program is projected to be completed by Q1 2023.

Strategy for Production Increase and Project Restart

BOE's ongoing drilling program is part of its broader strategy to enhance the production rate and mine life of the Honeymoon project. The project, which is fully permitted and ready for restart in Q4 2023, holds a high-grade, low-cost uranium deposit. To support the project's restart, BOE has secured a US$20 million debt facility from Tribeca Investment Partners. This funding will contribute to the projected annual production of 2. 45 Mlb of U3O8 at a low operating cost of US$23. 90/lb.

Offtake Agreements and Positive Outlook

BOE has signed binding offtake agreements with four customers for a total of 7. 5 Mlb of U3O8 over a five-year period, representing 75% of the planned production. The company remains optimistic about the Honeymoon project, labelling it a low-risk, high-margin operation that stands to benefit from the increasing demand and rising price of uranium.

Disclaimer: This article provides a summary of the original Boss Energy Ltd announcement and is not a substitute for the full text of the announcement.

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