Boss Energy (ASX: BOE) is a step closer to becoming Australia’s next uranium producer after revealing the front-end engineering and design (FEED) process at its Honeymoon project in South Australia is “well ahead of schedule”.
The company now expects the FEED study will be finished early next year.
The study’s primary goals include finalising key technical decisions, producing foundational technical documents, as well as confirming and refining the budget and project scope.
Once the study is complete and a final investment decision made, Boss will begin detailed design work and start ordering long-lead items.
“We continue to extend our advantage as the most advanced emerging uranium producer in Australia,” Boss managing director Duncan Craib said.
“We have a plant on care and maintenance, other significant production and storage infrastructure in place, we have formed an Owner’s Team to restart Honeymoon and we are moving through the FEED stage rapidly,” he added.
Advancing Honeymoon restart
In readiness to begin ordering long lead items for the mine restart, Boss is engaging with preferred vendors.
Negotiations are underway regarding the dry and calciner kiln, NIMCIX columns, reverse osmosis plant, and upgrading pregnant/barren leach solution pumping systems.
Boss has also appointed Jonathan Owen as project manager of the mine’s restart. Mr Owen is also part of the Owner’s Team.
Mr Owen has more than 25 years’ experience working on all aspects of a project’s lifecycle from feasibility to handover.
The rapidly advancing restart work at Honeymoon comes amid a rising uranium price, which reached a six year high of US$39 per pound last week.
To take advantage of the predicted price rises, Boss purchased 1.25 million pounds of uranium on the spot market in March for US$37.68 million (A$49.69 million).
Boss noted the 1.25Mlb of uranium was now worth US$48.75 million (A$65.88 million) based on last week’s price of U$39/lb.
“Strategically, this inventory is highly valuable to Boss on several levels as the company secures offtake agreements, finalises project funding and moves into production,” Boss stated.