Boss Energy identifies strategic satellite prospects at ready to go Honeymoon uranium project

Boss Energy (ASX: BOE) has identified significant potential to add to the production rates and mine life at its Honeymoon uranium project in South Australia with recent drilling uncovering two strategically-located satellite prospects.

Honeymoon is set to become Australia’s newest uranium mine when it begins operations later this year and the project’s mine life has been significantly boosted with scout drilling confirming the two new satellite prospects close to the Honeymoon production plant.

Boss managing director, Duncan Craib, said results from scout drilling at the Billeroo and Sunrise prospects have confirmed they have significant potential to add further uranium resources to Honeymoon.

Significant upside potential

“We have abundant exploration upside at Honeymoon, as shown by these results and the recent success at Gould’s Dam,” Mr Craib said.

“We intend to drive exploration hard with the aim of unlocking this value. This will enable us to continue growing the inventory which will in turn underpin increases in the mine life and production rates.”

“Organic growth of this nature will generate strong financial returns because we can leverage the infrastructure we are now establishing at Honeymoon.”

Mr Craib added that the strong pipeline of growth and an extremely bullish outlook for the uranium market is perfectly timed with first production from Honeymoon on track for the coming quarter.

“Boss is ideally positioned to continue delivering superior returns for shareholders.”

Scout drilling program a hit

Boss recently completed the small scout drilling program of 19 rotary mud holes for 2,520m at the two new prospects which are proximal to Honeymoon’s Gould’s Dam deposit.

The Billeroo and Sunrise prospects have very limited historical drilling, the bulk of which was completed in the 1970s and early 1980s.

The latest program followed up on some highly encouraging historic results across these prospects and identified new areas of potentially significant uranium mineralisation within the Inferred resource envelope for future upgrade drilling.

Mr Craib said further assessment of the two new target areas and the known satellite deposits of Gould’s Dam and Jasons, will be the focus of a study to assess and define a potential increase in the forecast production rate to more than 3 million pounds of uranium per annum or an extension of Honeymoon’s mine life.

Billeroo prospect background

The Billeroo prospect is located within the “Inferred” resource envelope between around 1.2km to 3km downstream to the north of the Gould’s Dam deposit.

A total of 7 rotary mud drill holes for 954m were completed as part of the recent scout drilling program, including a mix of historical hole twins and step-out drilling.

Several historic holes drilled in the early-mid 1970s within the Billeroo prospect identified wide intervals of uranium mineralisation associated with redox boundaries in the lower Eyre Formation sands, with highly encouraging results including 6.35m at 375 parts per million uranium and 6.15m at 484 parts per million uranium.

Sunrise prospect background

The Sunrise prospect is located upstream of the Gould’s Dam deposit. Historic drilling throughout this prospect is limited to a handful of wide-spaced drilling traverses, with line spacing ranging from approximately 250m to over 500m.

In the recent program a total of 12 scout holes were completed for 1,566m of drilling – made up of 11 step-out holes and one twin of historic hole BW324.

New hole WRM0048 was drilled as a twin of BW324 and was successful in replicating the geology and mineralised zone, returning 3.00m at 538 parts per million uranium

Mineralisation at Sunrise remains open to the south and east (towards the Gould’s Dam deposit) and given the wide spacing of the drilling to date the company believes the prospect represents an exciting opportunity to identify potentially significant additional resource proximal to the Gould’s Dam deposit.

Sunrise to be targeted in 2024

The company plans to target Sunrise with a significant infill drilling program in early 2024 in line with its plans to progress the Gould’s Dam project.

Boss now plans to utilise the newly acquired data from the scout drilling programs to update the regional geological model, which will facilitate drill targeting for a comprehensive infill program at Billeroo and Sunrise in early 2024.

Once the drilling is completed, that work will then feed into a mineral resource estimate update for these satellite prospects proximal to the Gould’s Dam deposit.

A number of other highly prospective prospects within approximately 10km of the Gould’s Dam deposit will also be tested with exploration drilling in 2024.