The S&P/ASX 200 Index (ASX: XJO) is down 0.7% in early trade, with ASX 200 uranium stock Boss Energy Ltd (ASX: BOE) suffering heavier losses.
Shares in the Aussie uranium producer closed yesterday trading for $3.98. In morning trade on Wednesday, shares are changing hands for $3.84 apiece, down 3.8%.
Boss Energy isn't alone in underperforming the benchmark today, with most ASX uranium shares deep in the red this morning.
And Boss is sliding despite the miner releasing promising drill results from its South Australian satellite project.
ASX 200 uranium stock tumbles despite promising drill results
Investors are bidding down the ASX 200 uranium stock today despite the company's reporting on high-grade drill results at its Gould's Dam satellite deposit.
Gould's Dam is located 80km from the company's flagship Honeymoon Uranium Mine. The project currently contains a JORC-compliant resource of 25 million pounds (Mlbs) of indicated and inferred U308.
The ASX 200 uranium stock's management highlighted that the drill results showed "the potential for Gould's Dam to help lift Honeymoon's production rate from the current nameplate capacity of 2.45M lbs a year to the export permit limit of 3.3M lbs a year and/or extend the mine's useful life".
The latest drilling campaign is targeting three areas within the inferred resource envelope at Gould's Dam – Sunrise, Billeroo and Beulah.
Infill and step-out drilling at the Sunrise and Billeroo targets is almost complete. To date, 96 mud rotary holes have been drilled for 12,911 metres.
Uranium mineralisation highlights include:
- 4.00m @ 2,925ppm pU3O8
- 3.25m @ 2,230ppm pU3O8
- 3.25m @ 1,406ppm pU3O8
The ASX 200 uranium stock said the exploratory program would assist it with wellfield planning and other pre-development work. Work has already commenced on accelerating the development of Gould's Dam.
Ongoing exploration will now focus on the Beulah satellite deposit, where Boss Energy plans to drill 40 holes to better define the region's mineralisation and geological characteristics.
It will also enable Boss to complete detailed geological and mineralisation models to support the development work and preparation for an ISR Mining Lease proposal for Gould's Dam.
According to the release:
This will lead into the next phase of mine plan development, including pump testing of the mineralised aquifer within the Gould's Dam Indicated resource (utilising monitoring wells installed during the 2023 drilling campaign) and core sample test work.
The global Honeymoon Mineral Resource stands at 71.6Mlbs (52.4Mt) with an average grade of 620ppm U308, using a cut-off grade of 250ppm.
Boss Energy share price snapshot
Amid growing global nuclear power generation plans, the Boss Energy share price has increased 22% over the past 12 months.
The ASX 200 uranium stock has lost ground over the past month, though, which sees shares now down 10% in 2024.
