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Key points
- The Boss Energy share price is currently up 2%, trading at $2.06
- The gains follow the release of encouraging drilling results from the company's Honeymoon Uranium Project
- According to Boss Energy, the results point to potential increases to the project's inventory, forecast production, and mine life
The Boss Energy Ltd (ASX: BOE) share price is in the green on Wednesday after the company released drilling results from its Honeymoon Uranium Project.
The drilling made up the first phase of the company's accelerated discovery initiative (ADI).
At the time of writing, the Boss Energy share price is $2.06, 1.98% higher than its previous close.
Let's take a closer look at the latest news from the up-and-coming uranium producer.
The Boss Energy share price is gaining 2% today
The Boss Energy share price is launching higher this morning on the back of "significant" results from the Honeymoon Project, highlighting the potential to increase the project's inventory, forecast production, and mine life.
The first phase of the ADI was made up of 37 holes for 4,448 metres across three lightly explored prospects. They included Brooks Dam Extension, Dam North, and Jason's South.
The results found potential for high-grade mineralisation outside the Honeymoon Restart Area.
Boss Managing Director Duncan Craib commented on the findings, saying:
These results demonstrate the substantial growth potential at Honeymoon, which is already poised to be Australia's next uranium producer…
We will resume exploration drilling this quarter, thereafter infill drilling, with the aim of growing the forecast production rate and mine life at Honeymoon.
Additionally, the company completed a significant cultural heritage clearance survey over high priority areas in the Eastern Regions tenements in late December.
The completion of the first phase of the ADI and heritage clearance survey will allow Boss Energy to begin planning for the program's second phase. That's set to begin next month.
It will also let the company plan for resource infill drilling of the satellite deposit at Jason's. The company expects that will go ahead in the 2022 field season.
Finally, grant funding for the first phase of the ADI – part of South Australia's Growth State Agenda – is now banked. The second phase will see the company complete the requirements of its ADI $275,000 exploration grant.
The company's exploration of the Honeymoon Project has seen its JORC Resource increase around 433% since 2015.
Unfortunately, today's gain hasn't been enough to boost the Boss Energy share price into the year-to-date green.
Right now, it is 8% lower than it was at the final close of last year.
