- Boab Metals’ updated MRE for Sorby Hills Project resulted in a 14% increase in Measured and Indicated Resources.
- The DFS Metallurgical Testwork Program has confirmed improved recoveries for fresh and oxidised ore for both lead and silver.
- NAIF and commercial banks undertook a site visit at Sorby Hills to progress due diligence.
Boab Metals Limited (ASX:BML) has highlighted significant progress of operations in its December 2021 quarterly report. During the period, the Company undertook a slew of developments at its 75%-owned Sorby Hills Lead-Silver-Zinc Project, in the Kimberley region of Western Australia.
The quarter was marked by a series of encouraging results from exploration and metallurgical testworks to assist in the financing and offtake process, putting Boab in a solid position to reach decision to mine in late Q2 / Q3 2022.
Pleasingly, the Company ended the December quarter on a firm financial footing, with a consolidated cash balance of AU$8.4 million.
Let us explore the Company’s December quarter activities in detail.
Highly encouraging upgraded MRE for Sorby Hills
CSA Global undertook the updated Mineral Resource Estimate (MRE), which included the results from the Phase IV and Phase V drilling programs. The latest Sorby Hills MRE upgrades the PFS (Prefeasibility Study) Mineral Resource Estimate.
The updated MRE for Sorby Hills stands at 47.3Mt at 4.1% Pb Eq (3.1% Pb, 35g/t Ag) and 0.4% Zn containing 1.47Mt Pb, 53Moz Ag and 0.21kt Zn.
The updated MRE represents a 14% increase in Measured and Indicated Resources, 65kt contained Lead (9%) and 3.0Moz contained Silver (11%) versus the PFS Resource.
Sorby Hills Mineral Resource Estimate – Alpha Deposit Zn Domains only
Image Source: BML quarterly update, 21 January 2022
Metallurgical testwork delivers enhanced metal recoveries
The DFS Metallurgical Testwork Program was launched, driven by the success of Phase IV drilling program, with samples and composites utilised for a range of testwork.
Flotation results confirmed the recoveries of
- 78% to 95% (Fresh Ore) and 80% to 90% (Oxidised Ore) for Lead
- 78% to 87% (Fresh Ore) and 88% to 92% (Oxidised Ore) for Silver
The results are anticipated to have a positive impact on the project economics.
The results of a comprehensive assay undertaken on Lead-Silver Concentrate produced from each locked cycle test have been provided to potential offtakers as part of the ongoing tender for Boab’s share of the Sorby Hills Lead-Silver concentrate production.
The DFS Metallurgical Testwork Program explored DMS as an opportunity to enhance low-grade ore before milling and flotation to allow for the processing of ore that otherwise would be deemed uneconomic.
However, owing to reduced recovery and highlighted additional process design and operation risk demonstrated by testwork results, the DMS option will not be considered further within the DFS.
Project due diligence by NAIF and Commercial Banks
Representatives from the Federal Government’s Northern Australia Infrastructure Facility (NAIF), and executives from a number of Australian and international commercial mining banks, undertook a two-day site visit of the Sorby Hills Project and surrounding infrastructure. The visit was a part of their ongoing due diligence of the project.
The site visit followed positive discussions with potential project lenders, with the discussions providing confidence in Boab’s ability to execute the project.
Road Ahead- Project Development Timeline
Source: Copyright © 2022 Kalkine Media®, Data Source: BML Update, dated 21 January 2021
BML shares were trading at AU$0.335 midday on 24 January 2022.