Boss Energy has withdrawn its feasibility study for its Honeymoon mine in South Australia, after it identified material deviations in life-of-mine production and costs.
The uranium producer warned that the mine had much less saleable product than it disclosed to investors in its 2021 feasibility study.
Boss Energy said its Honeymoon review found that there was less continuity of higher grade mineralisation, lower leachability, and smaller wellfields compared to previous assumptions.
These factors would be expected to impact estimated life-of-mine production, annual production rates and sustaining capital cost per pound of uranium produced from fiscal 2027 onwards.
Boss Energy Managing Director Matthew Dusci said: “Although Boss acknowledges this disappointing outcome, the Honeymoon review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design.
“While additional work is necessary to finalise a new feasibility study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to current wellfield design.
“We acknowledge there is a significant amount of work required for Boss to restore shareholder value.
“The team is committed to delivering on this important measure through optimising what we see as a robust uranium production asset, if a new wide-spaced wellfield design can be successfully implemented.”
Boss Energy has identified a potential pathway forward and initiated a new feasibility study, which is expected to be completed in the third quarter of 2026, to investigate a wide-spaced wellfield design.
The new design could potentially lower operating costs and extend mine life compared to the current wellfield design.
