Canadian-based First Quantum Minerals has commenced a maiden diamond drilling program along the Yarramba Palaeovalley on the tenements of Boss Energy’s Honeymoon uranium project in South Australia.
Boss Energy first entered into an exploration earn-in agreement with First Quantum Minerals in February 2022. The agreement covers the base metals rights of five tenements at the Honeymoon project, which commenced mining operations last week.
“With a proven track record in discovering and developing deposits, Boss considers First Quantum Minerals an ideal partner in the exploration and potential development of any base or precious metal discoveries at Honeymoon,” Boss Energy said of the agreement.
The new drilling program will target basement-hosted base metal mineralisation below the Yarramba Palaeovalley and will cover three high-priority targets identified from extensive analysis and modelling of geophysical and geochemical datasets.
It will consist of at least five diamond core holes for a minimum of 1800m drilling. Global drilling company DDH1 – which was acquired by Perenti last week – will complete the 4–6 week-long drilling program.
The geochemical assay results are expected to return within 1–2 months after the program’s completion.
“This agreement is an outstanding opportunity for Boss and our shareholders,” Boss Energy managing director Duncan Craib said.
“We have a global leader in First Quantum Minerals funding base metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia’s next uranium producer.”
After the drilling program’s completion, First Quantum Minerals may choose to earn a 51 per cent interest in its agreement with Boss by spending $6 million on exploration within five years, as well as maintaining minimum annual expenditure on the project of $500,000.
If First Quantum Minerals follows this path, it will enter into a joint venture agreement with Boss Energy.