Boss Energy is poised to restart the Honeymoon uranium Project in South Australia and become the country’s next uranium producer.
With developments moving more rapidly than the company expected, Boss managing director Duncan Craib said results from the Front-End Engineering Design (FEED) study had confirmed that the cost estimates in the Enhanced Feasibility Study remained accurate.
All targeted outcomes were achieved by the FEED, including:
- Finalisation of key technical and strategic project decisions
- Production of foundation technical documents for detailed design
- Confirmation of product specifications
- Refinement of budget, scope and schedule for the project
- Initiation of project procedures and systems
- Preparation of tenders for key long lead procurement items
“This was followed by the $125m equity raising, which was heavily over-subscribed,” Craib said.
“In parallel with these major achievements, the uranium price continued to increase sharply. As a result, the value of our 1.25 million pound stockpile of U308 has nearly doubled to A$95 million since we acquired it a year prior in March 2021.
“The combination of our highly successful raising and the valuable stockpile means we are fully funded through to production and cashflow at Honeymoon.
“As a result of this rapid progress on numerous fronts, we have entered the June quarter in a highly enviable position with preparation underway to make a final investment decision and begin negotiations on offtake contracts”.
The key findings of the Honeymoon EFS include:
- Honeymoon is economically robust with an IRR of 47 per cent at a US$60/lb U308 price
- Honeymoon is technically robust, with nameplate production of 2.45 million pounds U308 per annum at an AISC of US$25.60 over Life of Mine
- Potential to extend beyond initial 11-year mine life through near-mine satellite deposits.
Boss has also approved the Project Execution Plan (PEP) for Honeymoon’s restart, which outlines the objectives, processes and strategies to be employed by the company’s personnel and appointed EPCM engineer.
The PEP will be the governing control document for all aspects of Honeymoon’s execution phase of restarting operations and is designed to ensure the project meets targeted production requirements.
The developments come in the wake of Boss’ recent agreement with First Quantum Minerals to explore for base and precious metal over five tenements within the Honeymoon Project.