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Boss Resources Ltd Eyes Reduction In Operating Costs At Honeymoon Uranium

Boss Resources Ltd (ASX:BOE) has identified resin technology which may reduce operating costs at the Honeymoon uranium project, located 80 kilometres northwest of Broken Hill.

ANSTO, a world leader in uranium technology, was recently appointed to undertake additional test work on usage of the resin technology.

Boss is also commencing an expansion study at Honeymoon following the recent 330% increase in the global uranium resource.

The expansion study will be aimed at reducing operating costs through larger volumes, with results expected in August.

Grant Davey, executive director commented: "The use of resins at Honeymoon is a development to be thoroughly investigated for the expansion and recommissioning of the Honeymoon uranium project.

"The project is far bigger than what the original process plant was designed for.

"Using resins as part of an expansion could allow Boss to drop operating costs, which we believe will make the project viable even at current uranium prices."

Expansion study

Since acquisition of the project in December 2015, Boss has increase the Honeymoon global resource by 330%.

An important part of the resource increase comes from satellite deposits located up to 50 kilometres away from the main processing plant.

It is believed these satellite deposits could be effectively treated with the use of satellite ion exchange processing units.

Option study

Resin technology has improved significantly and resins capable of operating within the Honeymoon conditions have been developed and tested successfully.

As a result, Boss has initiated an option study focussing on expansion scenarios as well as processing design.

Using information generated during this study, Boss will be able to define input data required for the next stage of engineering development.

Analysis

The Boss share price is up circa 40% over the past 3 months, which has been largely driven by the increase in the resource base at Honeymoon.

Honeymoon is one of the highest grade un-mined uranium resources in Australia, and 1 of 4 fully permitted.

Given the time it takes to attain permits, this theoretically places them 3-5 years ahead of peers.

A larger processing plant facility, as well as the possible usage of resin technologies, could significantly reduce the cost of production.

Boss continues to show its ambition to lower costs, which has been spearheaded by lowering care and maintenance costs at Honeymoon from $2.5 million a year to $650,000.

Upcoming news flow is expected surrounding further resource estimation and exploration and updates on the option and expansion study.

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