A mining company is confident it could resume operations at its mothballed metal project in Central Australia.
Boss Resources has confirmed it could resume production within a year at its Honeymoon Uranium Project, 80km northwest of Broken Hill. The operation was put in maintenance and care back in 2013 due to low uranium commodity prices and high production costs.
‘Low upfront cost’
A feasibility study the proponent recently completed shows it would cost at least $92.9 million to restart and expand existing mine infrastructure worth $170M. This “very low upfront” expense and absence of corporate debt could make it affordable to produce more than 3.3M pounds (lb) of uranium annually.
“Its average all-in-cost of US$32.3/lb U308 over life of mine positions Honeymoon as one of the lowest operating uranium production costs worldwide,” Boss managing director and CEO Duncan Craib said in a public statement.
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Boss claims no further permits or approvals are needed to restart production and talks are already underway to make deals with utilities companies and potential off-take partners.