Boab Metals (ASX:BML) reports an action-packed March quarter

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Boab Metals (ASX:BML) reports an action-packed March quarter

Boab Metals (ASX:BML) March quarter results
Image source: Copyright © 2022 Kalkine Media ®

Highlights

  • Boab Metal signed a Port Access Agreement to secure access and stevedoring services at Wyndham Port.
  • The DFS study remains on track for the Sorby Hills Project and is expected to be completed during the second quarter of 2022.
  • Boab has received strong offtake offers for the project and is planning to evaluate them in light of DFS findings.
  • The Company reports a cash balance of AU$7.5 million at the end of 31 March 2022.

Boab Metals Limited (ASX:BML) has reported its quarterly performance for the period ending 31 March 2022, a day before the holidays. Boab wrapped up a busy quarter with a lot of developments happening at its 75%-owned Sorby Hills Pb-Ag-Zn Project in WA.

Related read: Boab Metal (ASX:BML) showcases Sorby Hills lead and silver project at Euroz Hartleys conference

Boab is focusing on the completion of the Definitive Feasibility Study (DFS) for the project. The company has received a significant number of offtake offers from potential buyers. Boab is planning to evaluate the offers in light of findings of the DFS. As per the company, the DFS is running on schedule and is expected to be completed during the second quarter of 2022.

Data source: BML update, 14 March 2022

BML executed port access agreement

Boab executed an agreement with Cambridge Gulf Limited for the access and stevedoring services at Wyndham Port, one of the major highlights of the March quarter. Boab will use the port to store, load and ship products to buyers from the Sorby Hills Project.

Related read: Boab Metals (ASX:BML) executes port access agreement with offtake deals in sight

The port is located just 150km by existing sealed road, from the project site and is the only deep-water port between Broome and Darwin. The port acts as one of the key links between primary and secondary industries of Northern Australia.

Boab has executed the agreement for a period of 12 years, to April 2034, with a provision of automatic rollover for a 12-month period thereafter.

Location of Sorby Hills Project and Wyndham Port (Image source: BML update, 14 April 2022)

Drilling results of Beta deposit included in the DFS

Boab Metals undertook a diamond and RC drilling campaign to test the Beta deposit on the project in 2021. The drill intercepts received were dominated by galena mineralisation along with high-grade silver. The assay results confirmed the presence of elevated silver grades with up to 360g/t recordings received at some intervals.

BML is hoping to include the Beta deposit in the Sorby Hills DFS mining inventory. The high-grade assay results received support for this move.

Related read: Boab Metals reports High Grade Mineralisation at the Sorby Hills Beta Deposit

Beta deposit cross section (Image source: BML update, 14 April 2022)

DFS study update

During the quarter, the DFS remained on track and significant developments were made during the reporting period.

Data source: BML update, 14 April 2022

Related read: What is boosting Sorby Hills DFS progress for Boab Metals?

Future action

  • The completion of the DFS Study of the project.
  • The execution of binding offtake agreement with potential buyers of the Sorby Hills Pb-Ag concentrate.
  • Securing approvals for starting site establishment works.
  • Selecting a preferred tenderer for undertaking the EPC work for the processing plant.
  • The completion of financier due diligence workstreams.

BML is targeting to reach Decision to Mine by late Q2/early Q3 of 2022. The Company has also provided a development timeline too.

Image source: BML update, 14 April 2022

Related read: Boab Metals' HY report heralds success, DFS on track for early Q2 2022

Share price movement: BML shares were trading with a positive bias, with an uptick of 2.22% at AU$0.46 (as at 12:00 PM (AEST)). The Company has a market cap of AU$69.07 million as of 14 April 2022.

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