S&P/ASX 200 Index (ASX: XJO) uranium stock Boss Energy Ltd (ASX: BOE) is charging higher today.
The Boss Energy share price closed yesterday at $5.66. In earlier trade shares were swapping hands for $5.79 apiece, up 2.3%. At the time of writing shares are trading for $5.75 apiece, up 1.6%.
For some context, the ASX 200 is up 0.5% at this same time.
The ASX 200 uranium stock is, obviously, best known for its uranium assets at its Honeymoon project in South Australia.
Boss Energy produced its first drum of uranium at Honeymoon in April.
The company recently said it's on track to ramp up to a steady-state production rate of 2.45 million pounds of U3O8 per year.
However, it's not uranium that's got investors bidding up the ASX 200 uranium stock today.
It's copper.
Here's why.
ASX 200 uranium stock strikes copper
This morning Boss Energy announced that Canadian-listed First Quantum Minerals Ltd (TSE: FM) maiden diamond drilling program at Honeymoon successfully intersected "basement-hosted base metal mineralisation".
The copper and gold intersections came in below the Yarramba Palaeovalley, which holds the uranium.
The ASX 200 uranium stock entered into an earn-in exploration agreement with First Quantum back in February 2022.
At the time, management stated:
The agreement enables Boss to remain fully focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential associated with a base and precious metals exploration program led by a global major.
That exposure looks to be paying off.
First assay results included:
- 16 metres at 0.27% copper and 0.1 grams of gold per tonne at 288 metres
- 47 metres at 0.19% Cu from 404 metres, with a number of narrower zones of 5 metres to 6 metres containing up to 0.5% Cu and 0.12g/t Au
Under the existing agreement, First Quantum has the right to earn a 51% interest in Honeymoon's base metal endowment by spending $6 million on exploration and a further 24% interest by sole-funding all base metals expenditure up to a decision to mine.
Following receipt of these results, First Quantum said it will continue to fund further copper and gold exploration at Honeymoon.
However, management noted:
Boss retains the sole right to explore for and exploit all uranium discoveries on the JV Project (being greater than 50% of the in-situ metal value being uranium). Boss will have a first right of offer in respect of any uranium discoveries made by First Quantum within the Curnamona craton of South Australia.
With copper, gold and uranium prices all surging over the past year, Boss Energy's Honeymoon project could prove to be more profitable than expected.
With today's intraday gain factored in, the ASX 200 uranium stock is up 110% since this time last year.
