What is boosting Sorby Hills DFS progress for Boab Metals?

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What is boosting Sorby Hills DFS progress for Boab Metals?

 What is boosting Sorby Hills DFS progress for Boab Metals?
Image source: BML Presentation, dated 8 February 2022

Highlights 

  • The recent new high grade drilling results at the Beta Deposit provide further support and confidence to the recently updated Mineral Resource Estimate (MRE) at Sorby Hills.
  • Boab’s JV partner, Yuguang has fully endorsed the Company’s DFS program and budget and confirmed their intention to fund its 25% contribution to the DFS costs.
  • Boab is undertaking several financing initiatives, with a target for a Final Investment Decision (FID) by mid-2022.
  • Sorby Hills DFS on track for completion in early Q2 2022.

Boab Metals Limited (ASX: BML) is effectively steering the development of its 75% owned Sorby Hills project, in Western Australia. The remaining interest in the project is owned by Henan Yuguang Gold and Lead Co., Ltd, the largest Lead smelting company and silver producer in China.

 Sorby Hills Highlights

Source: Copyright © 2022 Kalkine Media®, Source: BML Presentation, dated 8 February 2022

While Boab has advanced a number of initiatives to underpin the Sorby Hills Definitive Feasibility Study (DFS), Yuguang has fully endorsed the Company’s DFS program and budget and confirmed their intention to fund its 25% contribution to the DFS costs. The Sorby Hills DFS is on track for completion in early Q2 2022.

ALSO READ: Boab Metals’ December quarter building momentum for Sorby Hills DFS

Updated Mineral Resource Estimate (MRE)

The recent MRE delivered a 14% increase in Measured and Indicated Resources versus the PFS including 78% increase in Measured Resources.

Drilling continues to reveal expanded mineralisation across the Sorby Hills deposits and prospects. The recent new high grade drilling results at the Beta Deposit provide further support and confidence to the recently updated MRE at Sorby Hills. The Beta deposit was not previously included the Sorby Hills PFS Mine Plan.

ALSO READ: Boab Metals reports High Grade Mineralisation at the Sorby Hills Beta Deposit

: Sorby Hills Deposit

Source: BML Presentation, dated 8 February 2022

Enhanced Metallurgical Recoveries

Boab is building upon a significant body of previous work undertaken since acquiring it’s interest in Sorby Hills in 2018 and from previous owners dating back to 1979. Currently, testwork is undertaken on around 1,420kg of new diamond core split into Variability Samples and Master Composites covering each deposit. Results highlight separate flotation of Oxidised and Fresh Ore will deliver significant uplift in metal recovery across the Life of Mine.

 Metallurgical recoveries

Source: BML Presentation, dated 8 February 2022

Support for Increased Mining Inventory and Processing Capacity

Upgraded Resource and Metallurgical Recoveries support increased mining inventory and processing capacity and should deliver improved Project economics. Notably, a low-risk Mine Plan is underpinned by 92% Ore Reserves. The PFS adopted conventional processing route producing a high-quality concentrate. The DFS will investigate the opportunity to increase the 1.5Mtpa processing plant capacity proposed in the PFS.

Demonstrated Demand of Sorby Hills Lead-Silver Concentrate

The Company also made progress toward securing binding offtake for Boab’s share of the Sorby Hills concentrate. Competitive Offtake Tendering is nearing conclusion with strong proposals received from a suite of international and domestic traders and smelters. Binding Offtake Agreement is targeted within Q1 2022.

ALSO READ: Boab Metals confirms solid demand for its Sorby Hills Lead-Silver Concentrate

Advanced Engagement with Project Financiers

Boab is investigating several funding initiatives, with a target for a Final Investment Decision by mid-2022.  The Company has engaged BurnVoir Corporate Finance to advise on and arrange a project finance solution for the Sorby Hills Project. Moreover, a site visit was recently undertaken by leading commercial banks and the Federal Government’s AU$7 billion Northern Australia Infrastructure Facility (NAIF). Additionally, Boab has had ongoing positive discussions, including a site visit of Sorby Hills, with Australian and international commercial banking groups.

ALSO READ: Boab Metals’ Mineral Resource upgrade to bolster DFS outcomes, shares jump 12% on ASX

Road Ahead

Source: BML Presentation, dated 8 February 2022

BML shares closed at AU$0.3330 on 9 February 2022, up by over 4% from the previous close.

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