Name of the Project
Honeymoon uranium project.

Location
The project is located in South Australia, about 80 km north-west from Broken Hill near the South Australia/New South Wales border.

Client
Boss Resources.

Project Description
The results of an expansion study on the project has motivated Boss Resources to progress to the next stage of development.

The mineral resource estimate used for the study totals 40.1-million tonnes grading 654 parts per million of uranium (U₃O₈) equivalent.

The study has identified and detailed the opportunity to restart the 880 000 lb/y plant, currently on care and maintenance, at minimal cost and to operate this during the expansion.

This will generate early cash flow and ramp up production from the wellfields more effectively.

The base case investigated considers an initial two-million-pound-a-year U₃O₈ operation ramping up to 3.6-million pounds a year (potentially in the fifth year of operation). The preferred route, based on economics and project risk, is a hybrid of ion exchange and solvent extraction (Eluex), which maximises the use of the existing equipment at Honeymoon.

The study proposes that wellfields for the project will be developed near the Honeymoon facilities, at the Jason’s deposit and near the Gould’s Dam deposit.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The cost estimates for the base case indicate that an initial capital expenditure of $7-million will be required for the restart of the existing plant, with a further $57-million required to achieve a two-million-pound-a-year throughput.

An additional $85-million will be required to bring Gould’s Dam on line and ramp it up to 3.6-million pounds a year.

Duration
Not stated.

Latest Developments
The prefeasibility study (PFS) has started at the project and is expected to be completed in the second quarterof 2017.

The PFS will consider opportunities to further optimise the process route and associated costs of the Honeymoon project. An in-fill drilling programme to further delineate the Jason’s deposit will also be undertaken.

The PFS will include metallurgical testwork to support a “go forward” case at the mine, as well as upgraded mineral resource estimates and engineering to define the preworks required to start the existing plant.

Boss hopes to make a decision to mine by the end of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Boss Resources, tel +61 8 6143 6730 or email admin@bossresources.com.au.