Boss Energy expands Honeymoon uranium mine at Broken Hill

Boss Energy (ASX:BOE) has today flagged a planned upgrade to the mine plan and production forecast for its Honeymoon uranium project is likely to proceed. 

Company geos have hit uranium outside of the known boundaries of existing deposits, and Boss intends to use the new drill results to boost its existing resource estimate. 

In turn, the company intends to upgrade its total uranium production forecast for Honeymoon.

Aerial photography reveals the extent of existing development at Honeymoon, near SA's Broken Hill

Company management bullish on results 

Boss Energy director Duncan Craib says today’s news is good news for shareholders. 

“These results show Boss’ two-pronged strategy for creating value…including the recent FID to restart Honeymoon’s production and generate substantial cashflows,” Craib commented. 

“We will undertake detailed geological modelling and planning for resource upgrade drilling this quarter.” 

Further drilling planned for early 2023 

In the first quarter of next year, Boss will move ahead with further infill drilling at Honeymoon to boost production throughput schematics. 

Currently, Boss Energy boasts a global mineral uranium resource of 71.6 million pounds of uranium with an average grade of 620ppm (0.062%) uranium. 

Boss notes the company’s successful FID to restart Honeymoon was based on only 50% of this resource. 

Honeymoon on its own has an exploration target for between 58Mlb and 190Mlb of uranium, with grades between 340ppm and 1,080ppm. 

Investor jitters ahead of US inflation data 

A number of companies have seen lacklustre investor reactions today despite posting news of potentially significant discoveries. 

The US will release its inflation data for June tomorrow, and it appears the market is not willing to make too many bets before seeing what that data brings. 

While Boss Energy has seen its share price fall into the red today, it’s worth noting the momentum of uranium prices has remained unchanged from its gains in 2021. 

Currently, the price of uranium per pound is up 48.9% compared to this time last year. 

Boss Energy's three month charts compared to the Materials Index (XMJ)