Uranium mine to reopen
Monday, 8th October, 2018
By Myles Burt
The wheels are in motion at Honeymoon Mine after mining company Boss Resources sold off its African gold interests to focus on the uranium project.
The Perth-based company has sold its stake in the Golden Hill and Gourma gold projects in Burkina Faso for $10 million to their joint venture partner Teranga Gold.
Earlier this year, Honeymoon Mine was still in care and maintenance mode while engineering works were carried out to “de-risk” the asset, and increase its competitive edge against other uranium mines.
Now Boss Resources is waiting for the uranium spot price to hit over $30 US per pound.
“So before committing the expenditure to a project we need some certainty and confidence of the price,” Boss Resources said.
The company believes a price increase was on the horizon after prominent uranium company Cameco closed the McArthur River Mine indefinitely.
Kazatomprom has also cut back on uranium production and Russia has threatened to halt nuclear fuel trade dealings with the US.
“So there’s a number or so grassroots appearing but until we see the price rise it’s really a matter of keeping it in good care and maintenance,” Boss Resources said.
“Best preparing ourselves for when it does rise.”
The uranium spot price was dwindling at $20 to $22 US earlier this year, but has now crept to $27 US per pound.
Honeymoon could reopen next year, and Boss Resources said it would look to Broken Hill for transport and workers.
The company also plans to continue exploring around the mine site area where about 50 million pounds of untapped uranium is believed to be sitting, with areas such as Gould’s Dam being strong targets for exploration.
“Where the Honeymoon resource is located it’s in a highly prospective paleochannel,” Boss Resources said.
“Which is very, very exciting from a uranium exploration perspective.
“So that’s also an area where we’ll do some exploration.”
Boss Resources said it was also “open-minded” to potential uranium exploration in the Far West of New South Wales.
The NSW State Government revoked a ban on uranium exploration in 2012, but a ban on uranium mining is still in place.