Boss Energy drills first new wells at Honeymoon, admitted to ASX 300
Boss Energy managing director Duncan Craib says the enhanced study shows Honeymoon to be an “extremely robust project”.
South Australia uranium developer Boss Energy (ASX: BOE) continues to make strong progress on its planned reopening of the Honeymoon mine, with well field drilling now underway.
The company will also, from 19 September, be promoted into the ASX 300 index — and that is particularly significant as there will then be three uranium companies in that key index.
Paladin Energy (ASX: PDN) is already in the ASX 300, and also promoted this month is Deep Yellow (ASX: DYL), which is a strong indication the uranium sector is gaining investor confidence.
Boss managing director Duncan Craib said the move into the ASX 300 will pave the way for more global investors to become shareholders.
Recommissioning site accommodation
Well field drilling has begun with 12 of the planned 86 pre-start wells successfully completed and cased.
Meanwhile, well field construction contractors have begun preliminary testing and inspections. That team will be responsible for the mechanical, piping and electrical works.
Boss said it has also made “rapid” progress with recommissioning site accommodation, with 80 rooms now completely refurbished and in use.
The rest of the camp services have also been brought back into operation.
Boss has awarded contracts for camp services, including messing, laundry and maintenance, with the successful tenderer to begin work in October.
Sixty procurement packages already let
The company says a local earthworks contractor has been tasked with upgrading the 22km-long access road to the mine site, thus making it more resilient to weather and vehicle wear.
Boss is accelerating the procurement process, with contracts totalling $14.4 million already awarded.
“The packages awarded to date are in line with the feasibility cost estimates and represent 13% of the project’s total forecast capital cost of $113 million,” the statement noted.
‘Outstanding’ progress as Boss heads toward production
The long-lead items ordered include two new electric kilns, which will produce a calcinated uranium oxide product.
An ambulance has also arrived on site.
Mr Craib said the mine reopening process is making “outstanding” progress and Boss is on track to be Australia’s next uranium producer by the December quarter of next year.
“We are on budget and on time.”
“The outlook for uranium continues to strengthen as the world looks to nuclear as the solution to the energy crisis and global warming,” he added.
The company has been identifying, addressing, and positioning the Honeymoon project to be Australia’s next producer of up to 3.3 million pounds per annum.
Honeymoon contains a fully permitted uranium mine with $170 million of established infrastructure including a plant in good condition under care and maintenance.