An evaluation of Boss Resources’ (ASX: BOE) advanced Honeymoon uranium project has identified avenues of “significant cost reduction” in developing and operating a mine in South Australia.
The improved economics are in comparison to the January 2020 feasibility study and are primarily a result of optimisation work on the ion exchange process resulting in a reduction of power required on site and transmission line upgrade costs.
GR Engineering Services identified a 10% or US$6.3 million cost saving in the estimated capital expenditure, while US$1.20 per pound of uranium is expected to be shaved off operating costs.
Since delivering what Boss describes as a “highly successful feasibility study” at the start of the year, Boss has worked with the Australian Nuclear Science and Technology Organisation on technical optimisation studies.
The studies aimed to remove the requirement for solution heating in the elution of uranium from the ion exchange resin.
Test work revealed an ambient temperature process could “easily” achieve the required conversion performance within the process design.
This has led to an estimated 45% reduction in required reagents in addition to power input needed.
Boss managing director and chief executive officer Duncan Craib said the company would continue working towards reducing costs and revising the previous feasibility study estimates to strengthen Honeymoon’s potential to become one of the lowest cost uranium producers worldwide.
The company will incorporate these latest optimisations as well as other initiatives into an updated feasibility study.
In parallel, Boss is also undertaking a comprehensive desktop review of historical data to define new exploration targets at Honeymoon – focusing on expanding the known discoveries.
The company anticipates it will firm up enough resources to underpin a planned stage three production of more than 3Mlb per annum of uranium equivalent.
Today’s news follows the possibility a uranium mining ban in NSW could be overturned. The current ban has been in place for more than 30 years.