Diamond drilling at Boss Energy’s Atlas target

Boss Energy has released the first results from the initial drilling program at the Honeymoon uranium project in South Australia, including the discovery of copper at the site.

The company said that First Quantum Minerals’ maiden diamond drilling program on Honeymoon’s tenements had successfully intersected basement-hosted base metal mineralisation below the Yarramba Palaeovalley which holds the uranium.

Assays include:

  • 23CURDD002: 16m at 0.27 per cent copper (Cu) and 0.1g/t gold (Au), from 288m
  • 23CURDD006: 47m at 0.19 per cent Cu from 404m, with a number of narrower zones of 5-6m containing up to 0.5 per cent Cu and 0.12g/t Au.

Following a phase of regional data assessment and targeting for base metals in the Paleo-Mesoproterozoic basement stratigraphy, a rotary mud-diamond drilling program was conducted on EL6081 and EL6510 during October-December 2023. Six holes totalling 2,473.4m across three targets were completed by DDH1 Drilling. Boss Energy said that the program intended to test several target styles associated with the Bimba Formation, the regionally anomalous unit that hosts the majority of known base and precious metal occurrences in the region.

Three holes totalling 1,029.5m were completed at the Atlas target, 4km east of Honeymoon. Drilling yielded several zones of stratiform and vein-hosted copper mineralisation with minor gold and outboard weak zinc at the interpreted Bimba Formation position, in two holes separated by 1.3km strike length.

Mineralised intercepts include 16m at 0.27 per cent Cu and 0.1g/t Au, from 288m (23CURDD002) and 47m at 0.19 per cent Cu from 404m (23CURDD006), with a number of narrower zones of 5-6m containing up to 0.5 per cent Cu and 0.12g/t Au. Boss Energy said that the intercepts are proof of process; evidence for movement and precipitation of copper (~gold/~zinc) within the Bimba Formation in the target area. 

One deep drill hole totalling 742.3m was completed at the Yarramba dome target, 15km north of Honeymoon. The hole targeted the inferred base of Bimba Formation and magnetic footwall beneath, based on magnetic inversion modelling and geological interpretations. The company said that whilst geometrically the apex of the dome was well-tested, neither the target horizon nor any appreciable mineralisation was intersected at economic depths and the target was downgraded as a result.

Boss Energy entered into an exploration earn-in agreement with First Quantum Minerals in February 2022. 

The agreement relates to base metals rights over the following five tenements at Boss Energy’s Honeymoon Uranium Project: EL 6512, EL 6511, EL 6020, EL 6510, EL 6081.

Following receipt of the results, Boss Energy said that First Quantum Minerals has elected to continue to fund further exploration under a joint venture (JV) agreement. Under the agreement First Quantum Minerals has the right but not the obligation to spend $6M on exploration within five years and maintain a minimum annual expenditure on the JV project of $500,000 per year. If First Quantum Minerals completes these obligations it will earn an initial 51 per cent interest in the project (first earn-in).

First Quantum Minerals may elect to earn an additional 24 per cent interest in the JV project for a total interest of 75 per cent by sole funding expenditure on the JV project until a Decision to Mine within five years and maintaining minimum annual expenditure on the JV project of $500,000 (second earn-in). First Quantum Minerals may extend the second earn-in up to ten years by increasing minimum annual expenditure on the JV project to $1 million.

After acquiring a 75 per cent interest, First Quantum Minerals shall continue to sole fund required studies and programs up to receipt of all permits for commencement of construction, after which Boss Energy can maintain its project interest of 25 per cent by funding its share of project development costs or dilute.

If First Quantum Minerals does not complete the second earn-in, Boss Energy’s interest in the JV project will revert to 51 per cent with First Quantum Minerals retaining a 49 per cent interest.

Boss Energy shall be the operator of the JV project until First Quantum Minerals has acquired a 51 per cent interest, after which First Quantum Minerals can opt to become the operator.

Boss Energy retains the sole right to explore for and exploit all uranium discoveries on the JV project (being greater than 50 per cent of the in-situ metal value being uranium). Boss Energy will have a first right of offer in respect of any uranium discoveries made by First Quantum Minerals within the Curnamona craton of South Australia.

First Quantum Minerals may withdraw from the JV project at any point pursuant to 60 days’ notice. If the withdrawal occurs after First Quantum Minerals has earned a 51 per cent interest, but prior earning a 75 per cent interest, Boss Energy shall revert to a 51 per cent interest. Should either party’s interest fall below 10%, its interest will convert to a 1 per cent net smelter royalty.

Featured image: Diamond drilling at Boss Energy’s Atlas target, located 4km east of the Honeymoon mine. Image credit: Boss Energy.

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