PERTH (miningweekly.com) – A review has confirmed that ASX-listed Boss Energy has all the required permits to restart uranium production at its Honeymoon project, in South Australia.
The company on Tuesday reported that all federal and state permits required to mine, process, store, transport and export uranium from the Honeymoon operation had been received, along with permits needed to increase the nameplate production capacity to 2.45-million pounds a year.
Boss MD Duncan Craib told shareholders that the soon-to-be-completed enhanced feasibility study on the Honeymoon project would provide a roadmap to re-commissioning with simplified modifications.
“Combined with a significant uranium stockpile locked in at attractive prices and all the required approvals and permits for near-term production in place, Boss is well on track to be Australia’s next uranium producer.
“We will now complete the enhanced feasibility study in the coming weeks, paving the way for binding offtake contracts and a clear pathway for the restart of production, thereby capitalizing on Boss’ first-mover advantage in the new uranium cycle.”
A 2020 feasibility study into the Honeymoon project estimated that it would require a capital investment of $63.2-million to restart operation, and that the project would generate more than A$492-million in pre-tax free cash flow over the 12-year mine life, while the net present value had been estimated at $163-million and the internal rate of return at 42.9%.
Stage 1 of the operation was based on the refurbishment of the existing solvent extraction plant, with significant process improvements, while Stage 2 consisted of the addition of an ion exchange circuit, to achieve an annual production of two-million pounds of uranium oxide equivalent.