Boss Resources Ltd (ASX:BOE) has now increased its uranium resource by 3.5 times since recently acquiring the Honeymoon Project in South Australia.
The increase is the result of a maiden resource being declared for Jason's Deposit of 2.8 million tonnes at 840 parts per million uranium for 5.2 million pounds uranium above a 250 parts per million cut-off.
This marks the third substantial resource upgrade for the Honeymoon Project since acquisition in December 2015.
The combined Honeymoon resource now stands at 57.8 million pounds uranium.
Boss will undertake a drilling program in Q3, 2016 with the aim of upgrading the resource at the Jason’s Deposit.
Jason's Deposit
The Jason’s Deposit is located at the northern end of the Yarramba palaeochannel which also hosts the 27.6 million pound Honeymoon Deposit.
The resource is based upon an extensive review of the historical drilling database of 165 drill holes that Boss acquired with the Honeymoon Project in December 2015.
Analysis of the drilling at the Jason’s Deposit indicates that the current resource estimate is conservative due to sparsity of data and lack of infill drilling.
An Exploration Target has been estimated for the Jason’s Deposit of 3-6 million tonnes 5-10 million pounds of uranium grading 700-800 parts per million.
Honeymoon Uranium Project
The project contains Honeymoon, Gould's Dam and Jason's Deposit and is located 75 kilometres northwest of Broken Hill.
Honeymoon is a high-grade sandstone hosted uranium project amenable to insitu-leach mining techniques.
The 2600 square kilometres project includes the granted Honeymoon mining lease making it 1 of 4 fully permitted uranium projects in Australia.
The mine has been on care and maintenance since 2013 and was acquired by Boss for $9 million in staged payments.
The overall resource inventory at the Honeymoon project is 57.8 million pounds of uranium.
Boss has commenced an expansion study at Honeymoon aimed at reducing operating costs through larger volumes, with results expected in August.
Recent capital raising
Boss recently raised $1.25 million through the placement of 31.25 million shares at $0.04 per share to professional and sophisticated investors.
An institutional fund manager subscribed for 40% of the placement shares.
Analysis
The maiden resource for the Jason’s Deposit was completed using 165 historic drill holes, showing that Boss are committed to increasing project resources while keeping expenditure low.
Furthermore, Boss are confident that the resource can be further expanded through infill drilling.
Honeymoon is one of the highest grade un-mined uranium resources in Australia, and 1 of 4 fully permitted.
Given the time it takes to attain permits, this theoretically places them 3-5 years ahead of peers.
The project has A$170 million worth of plant and infrastructure already in place.
Boss continues to keep expenditure low, exemplified already by lowering care and maintenance costs at Honeymoon from $2.5 million a year to $650,000.
Upcoming milestones for Boss include:
- Target known mineralised areas for low cost additional resources (Q3, 2016);
- Complete expansion definitive feasibility study by 2017; and
- Commence expanded production mid 2019.
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