Boab Metals (ASX:BML) makes a strategic move, acquires accommodation camp for Sorby Hills project - Kalkine Media

Highlights:

• In September 2022, Boab Metals Limited (ASX:BML) acquired an accommodation camp for the Sorby Hills Lead-Silver Project, a significant de-risking milestone
• The camp includes 178 AC-fitted and furnished rooms with adjoining bathrooms
• This acquisition is in line with the company's plan to progress project execution workstreams in parallel with finalising the Definitive Feasibility Study

ASX-listed base and precious metals explorer Boab Metals Limited (ASX:BML) acquired a 178-room accommodation camp for the Sorby Hills Lead-Silver Project, in September 2022, a strategic move to de-risk the flagship project.

Boab’s Managing Director, Simon Noon, stated that the acquisition was in line with the company’s strategy to progress project execution workstreams in parallel with finalising the Definitive Feasibility Study.

The accommodation camp has been acquired at an extremely competitive price of AU$1.29 million, with an AU$259,000 deposit paid upfront and the remaining AU$1.04 million balance payable in Q4 2022.

The company believes that the acquisition provides substantial savings in running the project as against acquiring a new facility or via a lease finance arrangement.

Accommodation Camp details:

The camp lies approximately 600 km from Sorby Hills and is located at the Cosmo Mine Site in the Northern Territory and will be utilised to house project employees and contractors.

 About Sorby Hills Lead-Silver Project:

Sorby Hills is Australia’s largest undeveloped, near-surface Lead-Silver deposit with impressive project economics as per the Pre-Feasibility Study (“PFS”) data completed in Q3 2020. It is located 50 kilometres from the regional centre of Kununurra in East Kimberley.

For insights into the company's operations, click here.

Image Source: Company update

The Sorby Hills Project is located 150km by an existing sealed road from the Wyndham Port. The project boasts established infrastructure, along with existing permitting, enabling fast-track production.

The PFS also highlighted the robust nature of the project with a CAPEX payback of just 1.6 years from the first production. The project resource inventory^* comprises 1.5Mt of lead and 53Moz of Silver.

* As per the company's ASX announcement on 17 December 2021.