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Boss Energy (ASX: BOE) has started uranium production at its 30% owned Alta Mesa Project in South Texas.
This comes just 8 weeks after the minerals’ explorer had begun production at its 100% owned Honeymoon project in South Australia – shifting the company up a gear towards becoming a ~3Mlbs-a-year uranium producer this year.
Boss said production is forecast to ramp up to a steady rate of 1.5Mlbs a year at Alta Messa, with the company retaining sales and marketing rights over its pro-rata share.
The Alta Mesa Project, comprising over 200,000 acres, a central processing plant and wellfields, is managed by experienced uranium producer, and 70% partner, enCore Energy Corp.
Boss said that commissioning was proceeding to script at its Honeymoon project, where production is forecast to ramp up to 2.45Mlbs a year.
Boss acquired its 30 per cent interest in the Alta Mesa Project in February 2024 from enCore for US$60 million cash. Managing Director Duncan Craib described the start of production at Alta Mesa as another key milestone on the company’s pathway to becoming a global uranium supplier with a diversified production base in tier-one locations.
“With operations now ramping up at both Honeymoon and Alta Mesa, we are on track to hit our combined nameplate production target of 3Mlbs of uranium per annum,” Mr Craib said.
“Our timing could hardly be better given the increasingly tight supply and demand fundamentals in the uranium market.
“This highly favourable outlook was underpinned by US President Joe Biden’s recent signing of legislation to ban the importation of uranium products from Russia.
“This was a game-changing event for the uranium market and in particular for uranium projects in North America and Australia.
“Given that we are ramping up production in both locations and we have strong growth prospects at each one, Boss is very well positioned to continue capitalising on this huge opportunity”.
BOE was up nearly 5% in early trade at $4.23 cents.
