Boss Energy’s Honeymoon uranium project is on track, with strong progress on all fronts.
The Honeymoon project is a uranium mine roughly 80km north-east of Broken Hill in South Australia. It ceased operation in 2013 due to low uranium prices and was bought by Boss Energy in 2015.
Approval for the revamping of Honeymoon was received in October 2022 and start-up is expected to occur in the December quarter of 2023.
Boss Energy hopes to produce 2.5 million pounds of uranium annually by 2026.
The company is fully funded through to production, with cash on hand of $103 million and a uranium stockpile with a value of $96 million.
Boss Energy also reported that $65 million, or 62 per cent, of budgeted expenditure has now been committed to the program.
The company also reported that all critical equipment components, including the essential ion exchange columns, are on track for delivery.
“All aspects of the construction are proceeding to plan, including delivery of critical equipment, wellfield development and the evaporation pond,” Boss Energy managing director Duncan Craib said.
“We are currently scheduled to be on track for first production as planned in the December quarter of this year.
“This timetable was designed to ensure we are in production at the start of the next forecast uranium bull market, not half-way through it.
“With the outlook for the uranium price continuing to strengthen amid growing use of nuclear power and a shift away from Russian uranium, we are perfectly positioned as we prepare to move into the final stages of construction ahead of commissioning.”
In January, Boss Energy appointed experienced mining professional James Davidson as the general manager of Honeymoon.
Davidson has previously held positions with Rio Tinto, Mt Gordon Copper and Energy Resources of Australia (ERA) at its Ranger uranium mine.
“James has immense experience across project management and construction, with a particular emphasis on uranium metallurgy and operations,” Craib said at the time.
“This knowledge will be invaluable as we advance development of Honeymoon and prepare for commissioning and steady-state production.”