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Sydney, June 3, 2017 AEST (ABN Newswire) - Boss Resources (googlechartASX:BOE) (googlechartBSRGF:OTCMKTS) has announced a positive Pre-Feasibility Study (PFS) for their Honeymoon uranium in South Australia.

Highlights of the study include:

- Low capital outlay with optionality for quick restart;

o Stage 1 - US$10M re-start for SX Plant - 0.88Mlbs pa;
o Stage 2 - US$58M - Ion Exchange plant - 2Mlbs pa;
o Stage 3 - US$78M - Gould's Dam expansion - 3.2Mlbs pa;

- All-In Sustaining Costs (AISC) - US$23.90 / lb (LOM);

- Direct Operating Costs (C1) - US$15.60 / lb; and

- Work to commence on a DFS.

Analyst Comment: The results of the PFS were positive as it confirmed our belief that the Honeymoon project is on track to become the next uranium producing asset in Australia.

Capital - First, the existing infrastructure reduced the initial capital costs to recommence production to just US$10m. The low capital cost, as well as the fact Honeymoon is one of only four fully permitted uranium projects in Australia, should allow for production to recommence in a shorter time-frame compare to other uranium development assets.

Stage two development costs remained largely unchanged, however stage three capital cost fell significantly compared to our previous estimation (in part due to the reduced long-term production output). We believe, stage three expansion is likely to be funded from accumulated cash reserves as well as project financing. Therefore, reducing the likelihood of future capital raising requirements once the stage two expansion is completed.

Operating Costs - Operating costs (US$23.90 / lb - LOM), were in line with previous guidance. This will see the Honeymoon project become one of the lowest cost uranium producers when production commences in the future.

Production - Stage one and two expansion production guidance remained unchanged, however the long term guidance slightly fell (current 3.2Mlbs pa vs. previous - 3.6Mlbs pa). We understand this was to re-align guidance with the current export licence agreement.

Valuation: We currently value Boss at $0.23 / share (share price $0.05). Full details of our Valuation & Investment Analysis can be accessed by clicking on the button below.

To view the video, please visit:
http://www.abnnewswire.net/press/en/88614/BOE

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