Boss Resources (ASX: BOE) announced that it is possible to restart and expand its Honeymoon uranium project in South Australia.
Following a feasibility study and based on a conservative uranium price, Boss believes that Honeymoon is positioned as one of the world’s most advanced uranium development projects that can be fast-tracked to re-start production in 12 months with low capital intensity.
Boss says the FS indicates a technically sound and financially viable project, capable of generating more than A$492 million in pre-tax free cash flow over the project life
In a press release, the miner said that the goal is to seize an anticipated rally in the uranium market.
Boss said that the FS base case is limited to the Honeymoon Restart Area only, comprising 36Mlbs JORC resource with a two-phased restart plan, most of which takes advantage of the existing infrastructure.
The first stage comprises refurbishing the existing solvent extraction plant with significant process improvement, while the second stage implies adding an ion exchange circuit to achieve an annual production of 2Mlbs U3O8 equivalent.
“Reflecting a conservative base case uranium price of $50/lb U308 over LOM, the FS demonstrates Honeymoon’s advanced development can rapidly respond to a market rally, given the low capital barrier,” Duncan Craib, Boss’ managing director, said in the media brief.
