Boss Energy enhances Honeymoon’s mine life potential with drilling success at Jason’s deposit

Uranium specialist Boss Energy (ASX: BOE) has continued its strong start to 2024 with promising new results from drilling at the Jason’s deposit near its Honeymoon mine in South Australia (reports Small Caps).

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Managing director Duncan Craib said the latest exploration results from the Jason’s deposit support Boss’ strategy to leverage the Honeymoon infrastructure and increase exposure to the strong uranium market.

“We have a twin-pronged strategy at Honeymoon to drive shareholder value by successfully ramping up production while increasing the inventory in preparation for our next round of growth,” Mr Craib said.

“This is aimed at generating strong cashflow while laying the foundations for increases in Honeymoon’s production, which will in turn drive further growth in cashflow while also enabling us to leverage existing infrastructure.”

“These latest drilling results provide more evidence that the Jason’s deposit can play an important role in that growth strategy and help Boss increase its exposure to the uranium market as it continues to benefit from the highly favourable supply and demand fundamentals.”

Boss Energy’s exploration strategy has already been highly successful, increasing the Joint Ore Reserves Committee (JORC) resource at Honeymoon from 16.57 million pounds to 71.67Mlb since acquiring the project in December 2015.

The Jason’s deposit is located around 13km north of the Honeymoon mine and contains an inferred JORC resource of 6.2 million tonnes at 790 parts per million uranium for 10.7Mlb of contained uranium.

Boss is now preparing to commence a study aimed at increasing the forecast production rate at Honeymoon to more than 3Mlbpa of uranium, either from a 2.45Mlb nameplate capacity or an extension of mine life.

The study will include information from Jason’s, along with the known satellite deposits of Gould’s Dam, Billeroo and Sunrise.

These results will be used to update the satellite geological models in the first half of 2024, which will then feed into a resource update in the second half of the year.

This work will then form the basis of further step-out and in-fill drilling leading to a potential resource upgrade in 2025.

The completed Jason’s drilling program was designed to provide important geological and hydrogeological information for the Eyre Formation sediments that host the uranium mineralisation, along with in-fill and step-out coverage designed to establish continuity of mineralisation in key portions of the deposit.

Six holes from previous drilling campaigns at Jason’s were also twinned to obtain detailed hydrogeological information and to confirm uranium grades via borehole magnetic resonance, as well as prompt fission neutron and calibrated gamma logging.

Results from the 2023 twin drilling campaign predominantly confirmed both the historical grade intercepts and provided confirmation of suitable host lithologies for in situ recovery mining.

The promising results from Honeymoon follow the strong backing Boss recently received for its share purchase plan (SPP) and positive news from the Alta Mesa project it is set to acquire in the US.

In early January, Boss wrapped up a significantly oversubscribed SPP that, after originally targeting $10m, closed with $29.6m in applications.

However, the board elected to only increase the offer size by $5m to $15m to minimise the dilution of retail shareholders.

In mid-January, Boss also received news of a number of positive developments at the proposed Alta Mesa project acquisition in Southern Texas.

In early December, it entered into a master transaction agreement with US firm enCore Energy to acquire a 30% stake in Alta Mesa.

While the deal is still going through the normal paperwork and approvals, Boss has now received reports that enCore has successfully completed important drilling and refurbishment activities at the project.

It also confirmed that work is on schedule for a planned early 2024 resumption of uranium production at Alta Mesa.

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