Sydney, June 15, 2016 AEST (ABN Newswire) - Boss Resources (ASX:BOE) announced a maiden resource of 5.2Mlb U3O8 (840ppm eU3O8) for their Jason's deposit. This increases the global resource for the Honeymoon Uranium Project to 57.8Mlb U3O8 (654ppm eU3O8). Boss has more than tripled the size of the resource since acquiring the project at the end of 2015. The Honeymoon Project is one of only four uranium projects in Australia to be fully permitted for uranium mining.
Analyst Comment: This is the third resource upgrade from Boss since they acquired the Honeymoon Uranium Project 6 months ago, and the maiden resource for the Jason's deposit. Whilst the size of the initial resource at Jason's is small, the grade is relatively high (840ppm), which maintains the Honeymoon Project (654ppm) as one of the higher grade ISL projects globally compared to their peers (ASX:PEN)(Peninsula Energy Ltd) - 476ppm; Kazakhstan ISL approx. 400ppm).
We look forward to the initial exploration drill program commencing during 3Q16. The program will target infill drilling aimed at increasing the confidence level of the resource, as well as test the resource extensions. We believe the size of the resource will increase at the end of the program, given the extension drilling will most likely join historical drill results which intersected uranium mineralisation, however are currently outside of the resource zone.
Valuation: We maintain our valuation at $0.23 per share based on a production rate of 1.8Mlbs p.a. However given the current size of the resource and the exploration target (100Mlbs) it is possible future production could be as high as 4Mlbs p.a. We will review our production rate post the release of the expansion study (2H16).
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