Boss Energy shares advance on potential Honeymoon upgrade
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The news: Shares in Boss Energy climbed in early trading on the ASX after the uranium miner said it returned "strong drilling results" from its infill drilling program at its flagship Honeymoon Uranium project in South Australia.
The numbers: Boss shares were up 2.6% to $3.13 by 10:45am AEDT, having shed more than 20% since January.
The context: Boss said it has completed drilling at the Gould's Dam and Jason's satellite deposits at Honeymoon, with results underpinning an updated geological and mineralisation model and resource upgrade.
The two deposits have combined resources of 36.7 million pounds (Mlbs) of triuranium octoxide, a compound of uranium, while Honeymoon's current mining licence covers 36Mlbs of production. Boss said it will now seek government endorsement for the mining of two satellite deposits, effectively doubling the allowance under the licence.
The move will pave the way for Boss to assess potential increases in the annual production rate and mine life at Honeymoon, the company said.
What they said: "With production ramp-up at Honeymoon progressing so well, we are eager to press ahead with our plans to grow the annual output, cashflow and mine life," Boss managing director Duncan Craib said.
"These satellite deposits have the potential to drive growth as well as enabling us to leverage existing infrastructure and further capitalise on the opportunity presented by growing global demand for uranium from tier-one locations."
The source: ASX announcement
