Boss Energy (ASX: BOE) has announced strong results from the first phase of its new exploration strategy at the Honeymoon uranium project in South Australia, which highlight the potential to increase inventory, forecast production and mine life.
The emerging uranium producer today reported results from a 37-hole drilling program recently completed for 4,448 metres across three lightly explored prospects, Brooks Dam Extension, Brooks Dam North and Jason’s South.
The drilling intersected mineralisation outside of the current JORC resource at the Honeymoon restart area. Best results include: 2.25m at 774 parts per million uranium oxide from 83.35m and 1m at 1,727ppm from 99.5m at Brooks Dam North; 2m at 907ppm from 110m and 0.75m at 1,715ppm from 105m at Jason’s South; and 1.5m at 903ppm from 113.25m at Brooks Dam Exit.
Boss managing director Duncan Craib said the results demonstrate the “substantial growth potential” at Honeymoon, which is poised to be Australia’s next uranium producer.
The company’s exploration strategy has already increased the JORC resource at Honeymoon from 16.57 million pounds to 71.67Mlbs since December 2015.
“We will resume exploration drilling this quarter, thereafter infill drilling, with the aim of growing the forecast production rate and mine life at Honeymoon,” Mr Craib added.
Second exploration phase to start next month
A second phase of the current exploration campaign, named the ‘accelerate discovery initiative’, is planned for March supported by a cultural heritage clearance survey that was completed in December over high priority areas in the eastern region tenements.
The survey facilitates access to prepare for infill drilling at the Jason’s satellite deposit, which is aimed at upgrading inferred resources to increase the production profile contained in the enhanced feasibility study.
“The enhanced feasibility study was based on just half the existing JORC resource and these results show there is significant scope to expand the inventory further,” Mr Craib said.