Nov 20, 2024

Boss Energy Hits 3.25m @ 3,873ppm U3O8 at Honeymoon Satellite Deposits, South Australia

Introduction:

Boss Energy (ASX: BOE) (Market Cap: $1.24B | Last Close: $3.05 | Cash: $66.5M ) has reported significant uranium intercepts from infill drilling at its Gould's Dam and Jason's satellite deposits within the Honeymoon Uranium Project in South Australia, highlighted by 3.25m at 3,873ppm U3O8 from 122.00m.

Drill Results:

3.25m @ 3,873ppm U3O8 from 122.00m (Highest grade outside Gould's Dam Indicated resource) [WRM0176]
6.25m @ 1,094ppm U3O8 from 118.00m [WRM0175]
3.00m @ 960ppm U3O8 from 86.75m (Jason's deposit) [BMR233]
1.50m @ 1,381ppm U3O8 from 120.25m [WRM0192]
2.00m @ 714ppm U3O8 from 119.25m plus 4.25m @ 724ppm U3O8 from 122.50m [WRM0180]

Project Overview:

The Honeymoon Uranium Project is located in South Australia. The Gould's Dam deposit is situated approximately 80km northwest of the Honeymoon Mine and contains a JORC-compliant resource of 25Mlbs of indicated and inferred U3O8. The Jason's deposit is located about 13km north of the Honeymoon mine and contains a JORC Resource of 6.2Mt at 790ppm U3O8 for 10.7Mlbs contained U3O8 (Inferred).

The global Honeymoon Mineral Resource stands at 71.6 Mlb (52.4Mt) with an average grade of 620ppm U3O8, using a cut-off grade of 250ppm. The project has existing federal approvals allowing export of more than 3Mlbs/annum U3O8 equivalent.

Program Details:

The infill drilling campaign comprised 47 mud rotary holes for 6,455m at Beulah (within the Gould's Dam Inferred Resource envelope) and an additional 25 holes for 3,074m within the Inferred resource envelope at Jason's. The program utilized Borehole Magnetic Resonance (BMR) tools to provide porosity and permeability data critical for determining ISR mining suitability. Uranium mineralization is typically hosted within the basal sand package of the Eyre Formation, associated with a well-defined redox boundary.

Understanding These Results:

The high-grade intercepts, particularly at Beulah, demonstrate potential for significant resource expansion. The BMR data indicates that mineralization within the lower Eyre Formation sands should be amenable to in-situ recovery (ISR) mining in most cases.

The results from both Gould's Dam and Jason's deposits will be incorporated into updated geological and mineralization models, feeding into a mineral resource update planned for the first half of 2025. This update will guide further development work and infill drilling at these satellite deposits.

Management Commentary:

Boss Managing Director Duncan Craib stated:

"These satellite deposits have the potential to drive growth as well as enabling us to leverage existing infrastructure and further capitalise on the opportunity presented by growing global demand for uranium from tier-one locations".

Next Steps & Catalysts:

Boss Energy will incorporate the latest drilling data into ongoing geological and mineralization modeling for the Gould's Dam and Jason's satellite deposits. This will feed into a mineral resource update expected in the first half of 2025.

The company plans to use the updated resource for ongoing development work, including proposed scoping studies and mining lease applications. Further infill drilling at Gould's Dam is also anticipated based on the results of this update.

Commodity Outlook:

The uranium market continues to show strong fundamentals driven by growing global demand for nuclear energy as a low-carbon power source. Australia's stable regulatory environment and Boss Energy's existing approvals for significant uranium exports position the company well to potentially capitalize on favourable market conditions.

Conclusion:

The successful infill drilling program at Gould's Dam and Jason's satellite deposits has returned strong results, highlighting the potential to significantly expand Honeymoon's resource base and production profile. With existing infrastructure and federal export approvals in place, Boss Energy is well-positioned to leverage these satellite deposits to potentially drive growth and capitalize on increasing global uranium demand.

Sources:

BOE Drill Results Announcement

Additional Figures:

Australia

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Nov 19, 2024