Boss Resources Ltd (ASX:BOE) has a chance to reduce operating costs at its Honeymoon Uranium Project in South Australia after receiving positive test results from resin based metallurgical test work.
The ongoing test work program is associated with the expansion study in progress for Honeymoon.
The method being tested is the most commonly used in in-situ leach uranium operations in Kazakhstan and the U.S.
The expansion study is also targeting reductions in operating costs through increased volumes at Honeymoon.
Grant Davey, executive director, commented:
“We are encouraged by the positive results received from the initial stages of the resin technology test work program at Honeymoon.
"We are confident that additional test work will result in further reductions to project operating expenditure, as we look to identify the optimal pathway for the re-start of the Honeymoon mine.
"Furthermore, we are anticipating preliminary engineering designs to be submitted in June and we expect to commence additional resource drilling within our Eastern tenements in Q3, 2016.”
Test work details
The test work is being undertaken by Australian Nuclear Science and Technology Organisation (ANSTO), a world leader in uranium and ion exchange processing.
Results from process modelling work indicate that high recoveries of over 95% can be achieved at high resin loadings, assuming an increased number of operating resin columns.
Honeymoon expansion study
The expansion study is focused on selecting technology that will optimise and reduce costs for the planned expansion and minimise start-up issues for the processing plant.
Three core processes are being evaluated in the study and one will be selected and progressed in a pre-feasibility study.
The results from the expansion study are on schedule for delivery in the Q3, 2016.
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 on a granted mining lease.
The mine has been on care and maintenance since 2013 and was acquired by Boss in December 2015 for $9 million in staged payments.
The overall resource inventory at the Honeymoon project is 57.8 million pounds of uranium, which is 3.5 times larger than the resource size at acquisition.
Analysis
Using resins could allow Boss to reduce operating costs, which has the potential to make the project viable at lower uranium prices.
A recent maiden resource for the Jason’s Deposit was completed which saw Honeymoon's resource grow to being 3.5 times larger than it was at acquisition.
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.
Preliminary engineering designs are expected to be submitted in June and additional resource drilling is expected to commence in Q3, 2016.
Boss recently raised $1.25 million through a placement of shares to professional and sophisticated investors, which included an institutional fund manager.
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