A strategic review of Boss Energy’s (ASX: BOE) Honeymoon uranium project in South Australia has indicated an expected material deviation from the assumptions underpinning a 2021 enhanced feasibility study (EFS).
The findings are expected to impact life-of-mine production and costs from 2027 onwards, primarily due to less continuity of higher-grade mineralisation with no overlapping, less leachability, and smaller well-fields.
Boss has moved to formally withdraw the EFS, stating it should no longer be relied upon as a guide to future operational performance.
The company has initiated a new feasibility study to assess the potential economic benefits, and provide an update on work associated with the new design.
Wide-Space Design
Boss’ team has identified a potential pathway forward based on an alternative wide-space wellfield design that could better optimise the Honeymoon operation and maximise value for shareholders.
The design could potentially deliver lower costs and improved lixiviant grades by increasing leaching time, lowering reagent use, using more uranium under leach, and utilising well-field infrastructure over a larger surface area.
It could also improve resource recoverability and cost structure at the Gould’s Dam and Jason’s Deposit satellites.
Boss has targeted a scoping study for completion in mid-2026, with release of the feasibility study scheduled for later in the year.
The company remains in a strong financial position with $212 million of cash and liquid assets to self-fund key work programs associated with study.
Necessary Strategy Pivot
Managing director Matthew Dusci said the Honeymoon review had forced a change of strategy.
“We acknowledge this disappointing outcome, and believe the review and delineation drilling programs have enabled us to identify a potential pathway forward through a change in mining approach,” he said.
“This development presents an opportunity for us to potentially lower our operating costs, optimise production profiles, and extend mine life compared to the current well-field design.”
Boss has initiated a series of accelerated work streams to finalise the new feasibility study.
“Our team is committed to delivering on this important measure through optimising what we see as a robust uranium production asset in the event that a new wide-spaced well-field design can be successfully implemented,” Mr Dusci added.
