Boss Energy has commenced an infill drilling program at its Honeymoon uranium site in South Australia in an effort to expand inventory at the site.
The program is aimed at upgrading the resources at the deposit and improving both the geological and hydrogeological understanding of the mineralisation found there.
“These satellite deposits have the potential to expand Honeymoon’s production profile and extend the current mine life,” Boss managing director Duncan Craib said.
“Increases in the forecast production rate were not considered as part of the current Honeymoon restart feasibility studies, but given the strong outlook for the uranium market, we want to unlock the substantial value which would result from increasing the inventory and production rate.”
Honeymoon is on track for first production in the December quarter of this year.
Craib said the Honeywell project’s development is proceeding to plan and remains on time and on budget as the company moves towards restarting it.
“Our timing is looking ideal, with the uranium market continuing to tighten and the spot price moving up,” he said.
“Boss remains fully funded through to production, with cash on hand of $103 million and a strategic uranium stockpile valued at $105 million based on current spot prices. The company has no long-term debt.”