Boss Resources Ltd (ASX:BOE) has returned strong results from an ongoing infill drilling program at its Honeymoon Uranium Mine in South Australia.
The program is the first key component of the Honeymoon restart strategy and has confirmed large high-grade continuous mineralisation zones close to the existing Honeymoon processing plant.
A quarter of the 200 planned mud rotary drill holes are now complete.
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An outstanding single drill result assayed 9.5 metres at 7,407ppm uranium.
Other drill intercepts greater than 2 metres at a grade of 2,000ppm include: 5.5 metres at 11,248ppm from 105.25 metres; 2.5 metres at 3,568ppm from 106.25 metres; 2.25 metres at 3,360ppm from 107 metres; and 2.5 metres at 3,442ppm at 111.5 metres.
Results surpass expectations
Boss managing director Duncan Craib said the quality drill result grading at 7,407ppm uranium ranked as one of the best intersections drilled at honeymoon.
He said: “The infill drilling program is designed to deliver the measured and indicated resource components required to confidently determine production rates.
“These initial results surpass our expectations in both grade and thickness of the mineralisation.
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“To put it into perspective, our cut-off grade is 250ppm and whilst we could mine at lower grades, there are numerous cost and operational benefits to leaching higher grade material from continuous thicknesses.
“Primarily, less ore has to be leached to extract the same amount of contained uranium, which typically results in lower operating costs and increased operating margins.”
Honeymoon is around 80 kilometres northwest of Broken Hill near the South Australia and New South Wales border.
Following completion of the first phase infill drilling, Boss will commence a second phase of step-out exploratory drilling.