Boss Energy expects the FEED study for its honeymoon uranium mine to be completed early next year.
Boss Energy (ASX: BOE) is one step closer to becoming Australia’s next uranium producer after it was revealed that the front-end engineering and design (FEED) process on its honeymoon project in South Australia is “well ahead of schedule” .
The company now expects the FEED study to be completed early next year. The main objectives of the study include completing key technical decisions, preparing basic technical documents, and confirming and refining the budget and project scope.
Once the study is complete and a final investment decision has been made, Boss will begin the detailed engineering work and begin ordering items with a long lead time.
“We are expanding our advantage as the most progressive up-and-coming uranium producer in Australia,” said Boss managing director Duncan Craib.
“We have a maintenance facility, other major manufacturing and warehouse infrastructures, we have formed an owners team to restart honeymoon, and we are quickly moving through the FEED phase,” he added.
Progressive honeymoon restart
To start ordering long lead-in items to restart the mine, Boss is working with preferred vendors.
Negotiations are ongoing about the drying and calcining furnace, the NIMCIX columns, the reverse osmosis system and the modernization of pumping systems for pregnant / sterile caustic solutions.
Boss has also appointed Jonathan Owen to lead the mine recovery project. Mr. Owen is also part of the owners team.
Mr. Owen has over 25 years of experience working on all aspects of a project’s life cycle from feasibility to handover.
The rapidly advancing recovery work is taking place amid a rising uranium price that hit a six-year high of $ 39 a pound last week.
To take advantage of the forecast price hikes, Boss bought 1.25 million pounds of uranium for $ 37.68 million (AUD 49.69 million) on the spot market in March.
Boss noted that the 1.25 million pounds of uranium is now valued at $ 48.75 million (A $ 65.88 million) based on the price of $ 39 / pound last week.
“Strategically, this inventory is very valuable to Boss on several levels as the company signs purchase agreements, finalizes project financing and begins production,” said Boss.