Name of the Project
Honeymoon uranium restart project.

Location
South Australia.

Project Owner/s
ASX-listed Boss Energy.

Project Description
An enhanced feasibility study on the project has resulted in a 22.5% increase in production capacity, compared with a 2020 feasibility study on the project.

The project comprises two main exploration areas – the Eastern and Western tenement regions – with one granted Mining Lease 6109 totalling a 2 595 km2 tenement package.

The enhanced feasibility study was based on revised capital and operating estimates, a revised wellfield design plan and revised economic assumptions reflecting continued improvement in the outlook.

The study is based on using only 36-million pounds of the project’s global Joint Ore Reserves Committee-compliant resource of 71.6-million pounds.

The study proposes the removal of the existing solvent-extraction (SX) plant and replacing it with ion-exchange (IX) capacity. IX will be used as the only uranium-recovery technology in two stages to match the wellfield development schedule.

The startup phase will produce 1.63-million pounds of uranium in Year 2. Works for this phase include replacing the existing SX processing facility with three NIMCIX trains.

Additionally, various modifications will be made to improve performance in the leach liquor, precipitation, drying and packaging circuits to allow for the production of uranium by replacing the existing vacuum dryers with a calciner kiln.

The ramp-up IX circuit will mirror the startup NIMCIX circuit.

In the ramp-up phase, production will increase to 2.45-million pounds a year in Year 3, with the installation of a duplicate IX facility that will operate in parallel with the startup IX facility.

Life-of-mine production has increased from 20.74-million pounds in the 2020 feasibility study to 21.81-million pounds in the enhanced feasibility study.

The project’s mine life has decreased from 12 to 11 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The enhanced feasibility study estimates a pretax net present value, at an 8% discount rate, of $308.75-million, an increase of 35%, compared with the 2020 feasibility study.

The internal rate of return is estimated at 47.1%, compared with 51.4% in the 2020 feasibility study.

Payback has decreased from four years in the 2020 feasibility study to 3.5 years in the enhanced feasibility study.

Capital Expenditure
The cost of the project has increased from $69.98-million to $80.01-million.

Planned Start/End Date
Not stated.

Latest Developments
Boss Resources plans to start a seismic reflection programme to increase the inventory at its Honeymoon uranium project.

This new, innovative method of seismic acquisition is low-cost, low-impact and quicker than drilling, the company has said, and will be used to identify likely uranium-bearing sediments within known mineralised palaeochannels ahead of a forthcoming drilling campaign. This will enable the company to reduce the number of drill holes required to locate additional resources, streamline ground-based workflows and preserve exploration funds.

Key Contracts, Suppliers and Consultants
GR Engineering Services (process plant redesign); AMC Consultants (mineral resources estimate); Australian Nuclear Science and Technology Organisation Minerals Laboratories (supporting testwork for the optimised NIMCIX and elution design); Groundwater Science (wellfield design and production scheduling); Inception Group (in situ recovery support); and Infinity Corporate Finance (financial modelling services).

Contact Details for Project Information
Boss Energy, tel +61 61 8 9388 1474 or email info@readcorporate.com.