Why Boss Energy shares are falling despite positive uranium update

Boss Energy Ltd (ASX: BOE) shares are on the slide on Thursday morning.

At the time of writing, the ASX uranium stock is down 4.5% to $1.56.

Why are Boss Energy shares falling today?

The company’s shares are falling today after a market selloff offset the release of a positive announcement relating to its Gould’s Dam and Jason’s Deposit satellite uranium deposits near the Honeymoon operation.

According to the release, Boss Energy has updated the mineral resource estimate for Gould’s Dam to 38.7Mt at 388ppm U3O8 for 33.1Mlbs of contained U3O8. This represents a 30% increase in total contained uranium from the previous estimate.

The company also updated the mineral resource estimate for Jason’s Deposit to 13.3Mt at 410ppm U3O8 for 12.0Mlbs of uranium. That is up 9% from the previous estimate.

Development pathway advancing

Boss advised that the development pathway for both deposits has accelerated over the past six months, with baseline and technical studies for permitting applications being advanced.

The company is targeting the commencement of state and federal approvals processes in the second half of calendar year 2026.

However, Boss added that the timeframe from initial applications to the granting of a mining lease is expected to take up to 18 to 24 months, followed by a further six to 12 months for Program for Environment Protection and Rehabilitation approval.

So, if everything goes to plan, it will still be some time before these deposits contribute to the Honeymoon project.

Boss Energy’s managing director, Matthew Dusci, was pleased with the progress. He said:

Over the past six months, the Company has initiated several strategic programs aimed at unlocking shareholder value. One of these is aimed at progressing the value realisation of Gould’s Dam and Jason’s Deposit located close to the Honeymoon Operation. The updated Mineral Resource Estimates for Gould’s Dam and Jason’s Deposit incorporate additional drilling and an improved understanding of geology and mineralisation controls derived from the Honeymoon deposit.

This work highlights the significance of these deposits, with Gould’s Dam and Jason’s Deposit hosting 33Mlbs and 12Mlbs of uranium, respectively, with mineralisation at both deposits remaining open. Further drilling programs are planned to commence in the second half of this calendar year to continue to extend both resources.

Commenting on the impact on the New Feasibility Study for Honeymoon, Dusci adds:

The wide-spaced wellfield design being advanced as part of the New Feasibility Study at Honeymoon is also expected to be directly applicable to these satellite deposits. If successful, this approach has the potential to deliver a high conversion of resource to wellfield mining inventory through cost-efficient extraction. Early indications suggest that both deposits could be material production sources of uranium in the future, leveraging the existing infrastructure at the Honeymoon Operation.

The post Why Boss Energy shares are falling despite positive uranium update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.