Boss Energy hits ‘extensive mineralisation’ outside of existing Honeymoon resource
A highlight interval from the Brooks Dam extension target was 2.5m at 1,342ppm uranium from 98.75m.
Boss Energy (ASX: BOE) has hit “extensive mineralisation” outside the existing resource at its Honeymoon uranium project in South Australia as part of the company’s strategy to grow inventory to support an increased mine life and production.
Latest assays are from the accelerated drilling initiative program, which included 28 rotary mud holes for 3,210m completed in May. Drilling was across three prospects close to the known Honeymoon resource area.
Notable intersections outside of the Honeymoon resource area were 6m at 581 parts per million uranium from 84.5m; 2.5m at 1,342ppm uranium from 98.75m; 3m at 678ppm uranium from 86.25m; and 2m at 824ppm uranium from 101m.
These results were from the Brooks Dam extension target.
Over at Eaglehawk Dam, highlight intervals were 3m at 431ppm uranium from 74.25m; 2.25m at 526ppm uranium from 81.25m; and 2.75m at 430ppm uranium from 74.25m.
Meanwhile, wellfield delineation drill results within the Honeymoon resource area returned 6.1m at 2,640ppm uranium from 103.3m; 3.4m at 1,700ppm from 106.7m; and 1.2m at 3,500ppm uranium from 110.8m.
Boss managing director Duncan Craib said the results show the company’s two-pronged strategy of re-starting Honeymoon was “well on-track”.
“This involves the recent final investment decision to re-start Honeymoon’s production and generate substantial cash flows, which will make Boss Australia’s next uranium producer, and to grow Honeymoon’s mineral resource and mine life by advancing numerous highly promising near-mine and regional targets.”
Building Honeymoon resources
Mr Craib said in the current quarter, the company will undertake detailed geological modelling and planning for more infill drilling to increase resource confidence at the Jason’s and Gould’s satellite deposits.
Currently Jason’s has an inferred resource of 6.2 million tonnes at 790ppm uranium for 10.7 million pounds of contained uranium.
Gould’s Dam has an indicated resource of 4.4Mt at 650ppm uranium for 6.3Mlb, and an inferred estimate of 17.7Mt at 480ppm for 18.7Mlb.
The company expects the new target areas will underpin a study that will evaluate ramping production up to more than 3Mlb of uranium equivalent per annum.
This is not part of the current feasibility studies, but Boss noted with improving market conditions, it is “prudent” to progress development and mining of known satellite deposits to take advantage.
Global resources at Honeymoon stand at 52.4Mt at 620ppm uranium for 71.6Mlb.
Boss’ final investment decision and development plan for Honeymoon’s re-start is based on just 50% of the total global resource.