- Competitive EPC tenders received from a suite of highly experienced engineering firms.
- Boab to proceed to a competitive tendering process for the Sorby Hills Mining contract.
- Various workstreams on Sorby Hills are progressing well, with the Company securing major approvals to commence site establishment work.
Boab is currently finalising the Definitive Feasibility Study (DFS) of the project. The Company expects to wrap it in the second half of 2022.
Boab has managed to secure major approvals to commence Site Establishment works ahead of the 2022 wet season. In April 2022, Boab announced that it had executed a memorandum of understanding (MoU) with Horizon Power to deliver a cleaner, cheaper and more reliable power solution for the Project. Boab will now source low-cost, clean electricity from the Ord River Hydroelectric Plant Project.
Since executing the MoU, Boab has commenced work on a Connection Study concerning the transmission of green energy from the Ord River hydroelectric plant. The Connection Study will firm up engineering and design requirements, and ultimately, the pricing of electricity delivered to the project.
Data source: Company update, 31 May 2022
Preliminary supply and price modelling have indicated that the integrated hydro power solution proposed by Horizon Power would deliver a lower unit cost of energy with respect to the Build Own Operate “BOO” diesel power solution contemplated in the Sorby Hills PFS.
Boab to evaluate EPC Tenders for Project infrastructure
Boab has received tenders for the EPC Contract covering the process plant and non-process infrastructure from a range of highly experienced engineering firms. The quality of the tenders received, and the pricing of the EPC Contract have been highly competitive and in line with expectations.
The Company is currently working with a shortlist of tenderers to refine their submissions ahead of commencing contract formation with the preferred party. The tendered pricing will underpin capital costs included in the DFS, thus providing a higher level of accuracy.
Besides this, Boab is determined to progress to a competitive tender for the Mining Contract to secure accurate real-time pricing to underpin the DFS. Boab will take the opportunity to further refine the Sorby Hills mine design and schedule in light of positive results received from the DFS groundwater study, which has indicated that waterflow into the pits will be less than previously anticipated.
The Company feels it is prudent to take time to seek and incorporate tendered pricing for major capital and operating costs, including the open pit mining contract, to ensure they are reflective of the evolving economic environment. Boab will incorporate contracted pricing and advanced design work into the DFS, making for a more robust result.
With the release of the findings of the DFS, the Company can proceed with the final decision for offtake agreements for the materials produced from the Sorby Hills Project.