Boss Energy drilling at satellite uranium deposit signals longer mine life for Honeymoon

As part of its effort to find additional resources to extend both the mine life and production rates at the Honeymoon uranium mine in South Australia, Boss Energy (ASX: BOE) says “highly successful” results have been reported from its drilling program at the Gould’s Dam satellite deposit.

So far 21 holes have intercepted uranium mineralisation.

Assays include 5.25m at 3,744 parts per million uranium oxide from 102.5m down hole and, in the same hole, a separate interval of 3.25m at 1,150ppm.

Another hole intercepted 2.75m at 3,693ppm plus a separate 1.25m at 2,277ppm, while a third hole returned 4.25m at 1,094ppm.

Mine life based on only 50% of known resource

The Gould’s Dam deposit is located about 80km northwest of the Honeymoon Mine and has an existing indicated mineral resource of 4.4 million tonnes at 650ppm uranium oxide and an inferred resource of 17.7Mt at 480ppm.

Boss Energy says twin-hole validation drilling at Gould’s Dam confirms an overall upgrade of the historical drill results.

The company says the existing substantial resource which sits outside the mine, plus the latest drilling results, highlight the potential to increase both the production rate and mine life at Honeymoon

To date, Boss’ exploration strategy has, it says, been highly successful, increasing the JORC resource at Honeymoon by 433% to 71.67 million pounds of uranium oxide.

Two-pronged strategy

Managing director Duncan Craib said the company has been successful with its two-pronged strategy.

These involve the start of production and cash flow and, in parallel, increasing the uranium inventory to lift the mine life and uranium production rate.

“The results from new drill holes within the resource surpass our expectations in both grade and thickness of the mineralisation,” he added.

“While we could mine at lower grades, there are numerous cost and operational benefits to leaching higher grade material from continuing thicknesses.”

Drilling ahead at another satellite deposit

The current drilling program at Gould’s Dam continues, with further twin and infill drilling planned within the indicated resource area

Boss is also planning investigative drilling of promising areas peripheral to the current indicated resource.

Once the current work at Gould’s Dam is completed, a resource infill drilling program will begin at another satellite deposit, Jason’s.