For thousands of other reports visit RSC's Mineral Intellingence Map
Boss Resources Ltd.
Summary
| Project: | Honeymoon | |
|---|---|---|
| Deposit: | Honeymoon | |
| Location: | Australia | |
| Commodities: | Uranium | |
| Date: | 1/21/2020 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 21-1-2020: Boss Resources Ltd. announces a Feasibility Study report for its Honeymoon deposit at the Honeymoon project. Feasibility study results incl. pre-tax NPV (8%) of US$163M, IRR of 42.9%. Boss Resources Limited (ASX: BOE) (Boss or the Company) is p | |
| Resources: | (Resource, Total): 24Mt @ 660ppm U3O8 at Honeymoon Restart Area | |
| CP/QP: | [Overall Report]: n/a (n/a) | |
| ABSTRACT: | Boss Resources Limited (ASX: BOE) (Boss or the Company) is pleased to report results of Honeymoon’s Feasibility Study (FS or the Study) for the base case restart and expansion of its Honeymoon Uranium Project (Honeymoon or the Project) in South Australia. Outstanding FS results, based on a conservative uranium price, position Honeymoon 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 to seize an anticipated rally in the uranium market. Boss’ FS provides a base case to fast-track uranium production from the Honeymoon Restart Area (Restart Area) to achieve a 12-year LOM at 2Mlb/annum U3O8 equivalent, from only 35.9Mlb of the Project’s global mineral resource (JORC 2012) of 71.6Mlb. A total of 94% of the Restart Area Measured and Indicated resource is located within the boundaries of Mining Licence (ML) 6109, which has mining approval. ML6109 has a Uranium Mineral Export Permission for 3.3Mlb/annum U3O8 as renewed by the Australian Federal Government in April 20196 . No new permitting is required on ML6109. 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 (Table 1). Total pre-production capital is estimated at A$92.9 million, including a project contingency of A$8.1 million. The FS is based on in-situ recovery (ISR) mining with an average uranium tenor of 49 mg/l targeted over the LOM from the wellfields. All base case financial analyses were completed assuming an average US$50/lb U3O8 price over the LOM. Sensitivity analysis at a lower and higher industry referenced prices of US$40/lb U3O8 andUS$60/lb U3O8 demonstrates downside and upside to the Project (Table 2). The Company considers a base sales price of US$50/lb U3O8 over the LOM is reasonable given that current spot and term uranium prices are well below the price required to guarantee viability of a large proportion of the world’s existing production. Uranium analysts predict that a long-term spot price in the mid US$40’s (anticipated from 2023) will incentivise restarts whilst a price closer to US$60/lb will be needed for most new mines. | |
Full Report
opaxe is a smart software platform that reconfigures and redistributes information and produces business insights to help mining professionals and investors make better decisions. We utilise technology and machine learning for data collection and human intelligence for the value-added services.
Full Report