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Boab Metals Limited (ASX:BML) snaps up Manbarrum Zinc-Lead-Silver Project to expand resource base

Summary

  • BML has acquired 100% stake in the Manbarrum Zinc-Lead-Silver Project from Todd River Resources.
  • A JORC 2012-compliant mineral resource has already been estimated at the Manbarrum Project.
  • Boab will continue to focus on the Sorby Hills project and look for ways to incorporate the Manbarrum project within Boab’s broader regional production strategy.
  • The proximity and geological similarities of Sorby Hills and Manbarrum enhance the opportunity for Boab Metals, which is expected to benefit from the synergies and scale of the two projects.

In a strategic move, Boab Metals Limited (ASX:BML) has announced the acquisition of 100% stake in the Manbarrum Zinc-Lead-Silver Project in the Northern Territory from Todd River Resources Limited (ASX: TRT). The highly prospective Manbarrum project is only 25 km east of BML’s flagship Sorby Hills Lead-Silver Zinc Project.

Boab’s 100% acquisition of Manbarrum includes the following considerations –

  • Issuance and allotment of fully paid ordinary shares of BML worth AU$500,000 at an issue price of AU$0.4214 per share (30-day VWAP prior to execution of the binding agreement).
  • A Net Smelter Return (NSR) Royalty of 1.25%, payable on future revenue generated from the Manbarrum project.

ALSO READ: Boab Metals' (ASX: BML) Action-Packed March Quarter Sets Stage for Sorby Hills Project Success

Management Commentary

Mr Simon Noon, the Managing Director and CEO of Boab Metals, said -

“The acquisition of the Manbarrum asset is both a logical step and exciting strategic opportunity for the Company to grow its resource base and further establish itself as a long-term mineral producer and economic contributor to the Kimberley region.

The synergies between Manbarrum and Sorby Hills are clear. The location of Manbarrum with respect to Sorby Hills and its genetic relation to Sorby Hills will allow for the systematic exploration and economic evaluation of a highly prospective and underexplored geological domain.

While our near-term focus will remain squarely on bringing Sorby Hills into production, the Company looks forward to exploring opportunities to leverage our experience at Sorby Hills to fully realise the value adding potential of the Manbarrum Project.”

READ MORE: Boab Metals (ASX:BML) kicks off High-Impact Drilling at Sorby Hills

Manbarrum Project: Another Ace in the Vicinity of the Flagship Sorby Hills Lead-Silver Zinc Project

The Manbarrum project stretches over 175km2 of prospective tenements with mineral resources already estimated at two prospects. The project includes two granted mining leases, which are spread across prospective regions that are geologically similar to mineralisation at Sorby Hills.

Technical knowledge acquired by the Boab team from detailed work over several years at Sorby Hills will help to unlock the exploration and resource development potential at Manbarrum.

Manbarrum and the Sorby Hills Project Source: BML company announcement 21 July 2021

The Sorby Hills and the Manbarrum projects will be soon accessible throughout the year, thanks to a heavy duty sealed road, which is currently under construction from the town of Kununurra. A JORC 2012-compliant mineral resource has already been estimated at the Manbarrum Project.

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

In 2018, CSA Global carried out a conceptual open pit mining study at Manbarrum,  which delivered positive results from a production scenario which considered an on-site beneficiation facility. The mining study had identified further potential to enhance the project economics by deploying toll treatment of ores at a future onsite plant at Sorby Hills.

The proximity and the geological similarities of the two projects will allow the Company to contemplate synergistic benefits.

ALSO READ: Boab Metals (ASX: BML) on fast track to monetise High-Grade Sorby Hills Project

Burt Range sub-basin geology showing relationship between the Manbarrum Project and Sorby Hills Source: BML company announcement 21 July 2021

Though Boab will continue to focus on the Sorby Hills project, it will also investigate ways to incorporate the Manbarrum project within its broader regional production strategy.

READ MORE: Boab Metals (ASX: BML) and Yuguang take another step to expedite Sorby Hills project

The Next Steps

Over mid to long term, Boab’s exploration strategy entails –

  • Consolidating all technical data into a basin-wide exploration model
  • Delineation of priority target areas in and around the land holding for targeting or acquisition
  • Assessment of untested geochemical, geophysical and structural geological anomalies
  • Synthesis of mineralisation settings across the sub-basin
  • Review of the scope for re-interpretation and targeting of the high-grade mineralisation at Sandy Creek and Djibitgun

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