Boss Energy locks-in key environmental approvals for Honeymoon operational improvements
Boss Energy’s enhanced feasibility study for the Honeymoon uranium mine is due for delivery in the June quarter.
Emerging uranium producer Boss Energy (ASX: BOE) has locked-in key environmental approvals for its flagship Honeymoon uranium project in South Australia, which pave the way for operational enhancements.
The company has now received approval from the South Australian Government’s Department for Energy and Mining relating to an updated program for environmental protection and rehabilitation (PEPR) at Honeymoon.
Boss has been working closely with the South Australian Government to update the PEPR over the past 12 months.
The improvements now included in the updated regulatory approvals include maximum production capacity of 3.3 million pounds of uranium per annum, an extended mining footprint to underpin a longer operational life, processing plant upgrades, and a new uranium calciner.
Australia’s next uranium miner
Boss managing director Duncan Craib said the company was fully-funded to production and is making “rapid progress” on-site.
“The outlook for uranium demand is extremely strong as the world prepares to meet its energy needs and carbon emissions targets at the same time.”
The enhanced feasibility study that was released in June last year demonstrated Honeymoon had a 47% internal rate of return based on a uranium price of US$60/lb.
Honeymoon has an initial 11-year life with the last PEPR approval allowing Boss to extend the mining footprint through near mine satellite deposits at the project to increase its operational life.
A final investment decision was made for Honeymoon in June this year – paving the way for Boss to accelerate construction, with first production scheduled for the December quarter of next year.
This will initially ramp up to 2.45Mlb a year of uranium output.
Mine development remains on-budget and on-time.
Boss chairperson Peter O’Conner said that FY2022 had been an “exceptional” year of achievement for the company.
He pointed out that the company’s market cap had increased from $410 million to $624 million over the 12-month period ending June 2022.
At the end of August, uranium was sitting above US$50/lb – up from around US$34/lb at the same time in 2021.