Boss Energy has announced start-up well pre-flushing has revealed production-grade uranium at its Honeymoon project in South Australia.
With the uranium quality confirmed, Boss is on track to fill the pregnant leech solution (PLS) processing ponds by the end of 2023.
“To see production-grade uranium in well pre-flushing augurs extremely well for the start of commissioning and production ramp-up,” Boss managing director Duncan Craib said.
“We continue to execute our development strategy in line with the timetable and budget.”
The announcement follows the news earlier this week that the price of uranium skyrocketed to a 15-year high to $US80 ($121.9) per pound, the highest it has reached since March 2008.
With Boss gearing up for its first year of production, the boost sets the company up to hit the ground running as a competitive player in the global market.
“We are perfectly positioned to capitalise on this huge opportunity,” Craib said.
“Our position is further strengthened by the fact that we have no debt, cash on hand of $63 million and a strategic uranium stockpile now worth $156 million based on current spot prices, representing a book profit of more than $100 million since acquisition in 2021.”
Boss has big plans for the uranium space, with infill and scout drilling programs already underway at its Jason’s satellite deposit 13km north of Honeymoon.
“Satellite deposits such as Jason’s will help underpin our expansion study, which is aimed at increasing the inventory and production rate,” Craib said.
“This will also enable us to leverage the existing infrastructure at Honeymoon and capitalise on the growing demand for uranium from Tier-1 locations such as Australia.”
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