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Boab Metals (ASX:BML) in high spirits after Mineral Resource update of Sorby Hills

Image Source: BML company website

Summary

  • Boab Metals updated its Mineral Resource Estimate on its WA project located in East Kimberley.
  • Resource size increased significantly at the shallow depths, while Measured Resources increased by 56% on the project.
  • An additional drilling program is planned to increase the resource size and geological confidence on the project.

Western Australian-based Boab Metals Limited’s (ASX:BML) share price jumped 6.25% during the initial hours of the trade on the Mineral Resource update news of its Sorby Hills Lead-Silver-Zinc Project.

Boab reported a boost of 56% or 4.0Mt in Measured Resources with Total Resource estimated at 44.9Mt at 4.3% Pb Eq and 0.5% zinc. There has been a significant increase in the Resource size at the shallow depths of the project.

Read More: Boab Metals (ASX: BML) turns in sturdy first half with major strides at Sorby Hills

The latest update on mineral resources bolsters confidence in the project and paves the way for further exploratory drilling and other activities on the project.

Boab Metal is engaged in the exploration and development of the Sorby Hills Project in a joint venture with Henan Yuguang Gold & Lead Co. Ltd. BML controls 75% interest while the rest is controlled by its JV partner.

Mineral Resource Update

The work on Mineral Resource Estimates (MRE) on the Sorby Hills is undertaken by CSA Global. The estimates were complemented by the data and the geological findings from the recently concluded Phase IV of the drilling campaign. The prior MRE was set at 44.1 Mt as per the ASX announcement of 2 June 2020. The latest estimate is 44.9 Mt, which is nearly unchanged, but it is significant as Measured and Indicated resources have increased.

Map showing resource type on the project (Image source: Company update, 6 June 2021)

Additionally, 4.0 Mt of Indicated Resource was converted into Measured Resource with a significant increase in resource potential at the shallow depths of 60m or lower. The Measured Resource updated data will increase the Proved Reserves of the project and will be used for plant designing process during the detailed Feasibility Study.

The increase in mineralisation at the shallow depth indicates a possible increase in the thickness of deposits at Omega South and B Deposits.

Recent update: Export Finance Australia gives a leg up to Boab Metals’ Sorby Hills project

Cross-section of Omega Deposit showing new shallow Resources (Image source: Company update, 6 April 2021)

Cross-section of Omega Deposit showing new shallow Resources (Image source: Company update, 6 April 2021)

Mineral Resource Estimate

Data source: Company update, 6 April 2021

Mr Simon Noon, Managing Director and CEO of Boab Metals, expressed his views on today’s update and commented:

     Data source: Company update, 6 April 2021

BML stock prices reached A$0.425 on Tuesday before sliding a little and closing the trading session at A$0.400. As of 6 April 2021, BML has a market cap of A$60.9 million.


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