Boss Energy has revealed plans to grow its Honeymoon uranium project in South Australia with two new satellite prospects.
Following successful scout drilling at the Billeroo and Sunrise prospects just 80km from Honeymoon, Boss said the results reveal a significant potential for more uranium.
“We have abundant exploration upside at Honeymoon, as shown by these results and the recent success at Gould’s Dam,” Boss managing director Duncan 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.”
The drilling on the Billeroo deposit confirmed uranium mineralisation along a strike length of 1.5km, while mineralisation at the Sunrise prospect remains open to the south and east.
The new prospects sit just 2.5km from Honeymoon’s Gould’s Dam deposit, which contains a JORC resource of 4.4 million tonnes.
These two new target areas, along with the Gould’s Dam and Jasons deposits, will form the basis of a study on increasing the forecast production rate to more than three million pounds per year or an extension of mine life.
“Organic growth of this nature will generate strong financial returns because we can leverage the infrastructure we are now establishing at Honeymoon,” Craib said.
“With first production on track for the coming quarter, a strong pipeline of growth and an extremely bullish outlook for the uranium market, Boss is ideally positioned to continue delivering superior returns for shareholders.”
The announcement follows Boss’ recent infill drilling project at Gould’s Dam revealing a host of strong results with promising future production rates.
The company is taking steps to move the site towards development, with exploration drilling ongoing to uncover the extent of the resource.