Boss Energy sees continued gains as enCore expands Alta Mesa uranium output

Boss Energy’s (ASX: BOE) investment in the Alta Mesa uranium project in Texas continues to pay off, with further positive news overnight from partner enCore Energy.

Boss expanded its global plans in February 2024 with the $92 million acquisition of a 30% stake in the Alta Mesa in situ recovery uranium project from enCore.

Since that time, enCore has successfully commenced production at Alta Mesa and continues to ramp up activities aimed at achieving a targeted annualised production rate of 1.5 million pounds of uranium.

New IX circuit initiated

As part of that ramp-up, the US-based uranium developer has now started up a second ion exchange (IX) circuit at the Alta Mesa central processing plant.

IX circuits collect uranium from process water pumped from recovery wells in the well-field.

The new IX circuit doubles the total flow capacity from 2,500 gallons per minute (GPM) to 5,000GPM, with flow rate an essential factor in expanding the amount of uranium captured.

Additional rigs to come

The Alta Mesa central processing plant is currently running at approximately 75% of its total designed flow rate capacity due to well-field development activities and enCore is aiming to improve the development rate by expanding drill rig capacity.

In conjunction with the expansion of processing capacity, enCore has installed additional injection and extraction wells in the currently permitted and operational well-field.

enCore will bring additional wells online systematically in order to reach capacity and increase uranium capture at the processing plant.

The company is also progressing the development of a third IX circuit at Alta Mesa, which it is targeting to bring online in 2026.

‘Important phase’

“Sequencing well-fields as part of a ramp-up of new processing circuits, as experienced by our operating partners enCore at present on the Alta Mesa project, is an important phase for in situ recovery uranium mines,” Boss managing director Duncan Craib said.

“We remain encouraged by enCore’s program of work in addressing these issues.”

enCore executive chair William Sheriff said the company expects to add 13 recovery wells over the next six weeks.

“While we are pleased to see the second IX circuit operating, we look forward to full utilisation of this increase in capacity,” Mr Sheriff said.

“With additional drill rigs and accelerated effort, we look forward to the steady advancement of our uranium capture rates.”