Boss Energy's Honeymoon uranium project set to commence production in early 2024

[Music] hello welcome to small caps I'm Peter capsis well with the uranium price hitting at a near 15-year High coupled with a core for cleaner and Greener energy the prospect of uranium and nuclear energy is back on the table uranium producer boss energy that's ASX code Boe is amongst those in the mix for a bright 2024 to tell us more I'm joined by CEO and managing director Duncan CRA Duncan we got there welcome to the show Peter thanks very much thanks for having you back on the show now give us a quick recap of your main project the honeymoon project in South Australia it's been a long time coming uh where are you right now oh it's a terribly exciting Time Peter we're right on the verge of starting our first production so the honeymoon mine located in South Australia will be that state's third operating uranium mine similar to Olympic Dam and uh bhp's Olympic Dam and Four Mile so we'll be the first coming or the third coming into that state but the first in Australia in the past decade to come online so very exciting time for Uranium mining within the whole of Australia yeah it is very exciting indeed as you say run us through the numbers uh in terms of the life of mind the planned annual production because it's uh it's pretty much all systems go now isn't it it is I mean we've started pre- flushing the well fields and that's what was announced uh just recently because it shows that we're already getting the right tener of uranium being leeched from the wellfield which is what we need in order to start commercial production so we'll be ready to produce our first drum of uranium by the end of February 2024 which is in line with our schedule so we're on track we're on budget we're on time to meet our production forecast it's a 2-year ramp up um so the first year will produce or 12 months will produce between £850,000 to1 million pound perom the second year up to 1.6 million and the third year up to 2.45 million perom so and then that's your name plate capacity for a sort of 10 11 year mine life but what's important to note is that's only based on half our J resource which is what the current mine license sits on outside of that joke resource of 36 million sits another 36 million on two Satellite deposits so it really is there's a huge um sort of uh uh sort of opportunity here to extend the life of mine or increase the annual production throughput and I say increase annual production through put because we've also got an export permit uh which is federal government endorsed for up to £ 3.3 million perom so name plate production £ 2.45 million an export license for to 3.3 so we can actually increase our annual production and Export capability so yeah it's just an exciting time and as you mentioned the uranium price hitting 81 us a pound 15year High you couldn't time it better to bring a new operation into production You' be fair to say all your Christmases are coming at once Duncan you'd like to say that but it's been seven years of toiling to get to this point so yeah it's uh seven Christ to get to this point um but yeah we're we're absolutely delighted and uh you know it's all about people people people and and the best thing about South Australia it is a premier jurisdiction in Australia for Uranian mining as mentioned Olympic D for mile you've got real skills and capabilities to actually operate these mins and you know that State's been exporting material in excess of 20 years so yeah it's a it's just a it's really rewarding and particularly um for those who have been involved with the project for some time now uh you uh you mentioned about the um all traces in the wells which you announced just uh I think a few days a few days ago what does that how does that position you I guess going forward what's the significance of that because it's it's kind of a big deal yeah the significance is the previous operators were only able to achieve an average of 53 milligram per liter of uranium in the pregnant Lee solution or the solution coming out of the wellfield we're already at 70 MGR per liter so it just shows that we've introduced more modern well filled um sort of techniques we proved this capability back in the uh back half of 2017 when we ran our field Leach trial now we're doing it on a commercial scale and achieving those High grades so for the purposes of our feasibility study we more um conservative we only used a um an average of 47 migr per liter but as mentioned we're already at 70 and we're yet to get started at using our proper lixiviant our our sort of desired chemistry mix so it just shows that the mining method or the extraction of that uranium's on target for where we want it to be well it's a good segue in terms of the fact that you're adopting ex ion exchange technology at the processing plant so this is one benefit I guess of adopting it and uh why you'd be implementing it uh further I guess absolutely I mean Iron exchange account for over 60% of the world supply of uranium so all of the Kazakhstan operations use as zon exchange which is the leading country for Uranium production uh in the North America you've got Wyoming you've got Texas and in Australia so that nearest minav Val the Four Mile mine 300 km to our West uses iron exchange and in citu recovery to actually extract the uranium so this is a proven tried method and the reason why it's so prevalent and prominent within our industry today is that it was able to survive when the commodity price was in the doldrums because it's a cheaper more effective means of actual processing so it's the right technology for our deposit and uh yeah it will lead to increased production throughput and lower costs leading to more profit uh and and you know the dividends for shareholders okay you've mentioned uh increased production and throughput Etc what's happening with ongoing drilling at those satellite deposits you touched on it and D around it a moment ago but in terms of exploration the region uh Jason's gold biloo Sunrise deposits uh what's on the harise and what's around the corner thank you so we're currently in field drilling we've just finished on gold Stam and the actual uh resource definition and work is going on now between our geology team and competent person um so really just to prove up the resource there but what's happened out at Gold stams really surpassed our expectations I mean the grades a lot higher the the the deposits um the widths are fantastic for wellfields and then as you mentioned kindly um yeah another two uh deposits were identified being sunrise and billero so that Region's opening up what we now need to do is then apply a mining license over that property and then we'll look to basically trunk or pipe that product back to the honeymoon mine in the absence of that we would truck the resin beads back to the mine for further processing so yeah I mean what that will do is is just um really lead to to more utilization of the plant whether we increase that life of mine or grow the the production rates but very very exciting the rigs are currently working now on the Jason's deposits some 15 km to our North and it's another satellite deposits that we can look to to um be process through honeymoon to the south of our project we're also awarded some uh we call it the kinlock properties South Australian government awarded us four tenaments there it's a land package of about three 32,000 Square km it's got old traces of uranium but that in itself is also uh you know a very exciting sort of green field type project so our Focus now we get we've been really concentrated get honeymoon into production now we're really going to focus on the exporation and really adding more pounds to the actual plant to increase our throughput so yeah exciting period exciting all around coupled with that 15E high price what we mentioned before What's um what do you make of the recent run uh what's driving what's under I guess I think it's a combination of a few things but largely the mobile inventory so that Surplus inventory that can sort of be moved around and traded has been soaked up I mean whether it be Financial players like the Sprout commodity trust or really the draw down by Fuel buyers but that it's simply a tightening of the market the demand's there but there's a lack of new Supply coming into the market and I think that's where honeymoon's really well positioned we've got that first move Advantage now to seize upon these higher prices and when I look around the landscape I can't see another Australian mine uranium coming into production the next four or five years so we really do have that significant advantage to capture market share and that that's the key so what's been pleasing with the recent price Rises every time it ratchets up it seems to be staying there and supported by Fuel buyers so it's no longer Financial players pushing and manipulating the price underlying support by Fuel buyers is what's what's keeping it there and that to me is incredibly reassuring so for a commodity price of just over 18 months ago was hovering around the the sort of you know high 20s or so um to now be at 81 us per pound uh it's just terrific so um I I believe that and what's talked about in the industry is that 80 to 85 us per pound is an incentive vised price to bring on new production but as we know is are you in the right jurisdiction do you have the right people have you got your mining licenses have you organized your financing to build these mines they're all the determinants now that those developing companies are going to have to focus on and fortunately for honeymoon we're nearly there I mean our wellfields are now producing we're just making the final touches to the processing plant and by the end of February next year we'll be producing uh uranium ready for the export market so yeah it's it's about timing this game I mean you really want to position the mine and um as mentioned after seven years we've had time to strategize and try and get it right so fingers crossed we've we've done it properly last one from me the I guess the appetite and the conversation and the acceptance I guess uh you know around uranium and nuclear it's becoming more common if you will yeah I mean the the drive for nuclear power absolutely worldwide I mean it's part of the energy mix so to decarbonize the world and and really pursue green carbon free Bas load power nuclear's gaining great prominence so um hopefully in Australia we can we can look towards introducing that as a power source but really I mean for our purposes and that that would be you know what I would like for my children and nieces and nephews um to have that as part of our energy mix together with Renewable Power um but having said that you know there is an export market and that's growing so if you look around the world I mean we're getting huge inbound interests from call it North America Europe um South Korea Japan Etc there's a growing demand for for nuclear energy and when you look around the landscape you know Australia's Got a third of the world's uh the third largest sort of resource um within as a country so there's enormous potential here as a country to to sort of extract that material and sell um maybe one day uh we will go nuclear in Australia but if not the demands there internationally and that's where we'll be selling so you know our Target markets to start with would be North America and Europe um we've deliberately held back from entering into contracts because we could see the price rising and thank goodness we have because you're now entering a market where you can use what we call Market related contracts with a floor and a ceiling um the floor to protect the the producer the ceiling to protect the buyer so to speak and those have been ratcheting up with the uh increase in the spot price so yeah we've been very fous to to have timed it this way and uh really look forward to success going forward and for all our stakeholders to benefit from that well Duncan thanks for your time we appreciate the Insight uh it seems uh as you said very positive uh and I guess productive 2020 2024 for you so all I can say is bossing it next year and Beyond thank you very much thanks for the opportunity thank you

Channel: Small Caps

Views: 2,543

Keywords: Boss Energy, uranium, ASX, Duncan Craib

Id: HPy_dxcDUpU

Length: 13min 12sec (792 seconds)

Published: Sun Dec 03 2023