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What’s fuelling Boab Metals’ (ASX:BML) eye-catching share price rally?

Summary

  • BML shares have surged significantly in the past two weeks, with the growing applications of lead and silver in the cleantech industry acting as tailwinds.  
  • Boab is committed to developing Sorby Hills, which is Australia’s largest undeveloped, near-surface lead-silver deposit, stationed in Western Australia. 
  • The Company is currently undertaking a Phase V drilling program, which has the potential to increase mine life and expand the proposed processing capacity at Sorby Hills.  

Boab Metals Limited (ASX: BML) has been making waves on the stock market recently, with investors beginning to appreciate the solid growth potential of the Australian lead and silver developer.  

Triggered by the investors’ activity, BML shares have rallied over 22% in the past two weeks. The stock was trading at A$0.440 on 24 June 2021 (at 2:21 PM AEST).

On that note, an overview of recent developments at the Company’s Sorby Hills joint venture (JV) project in Western Australia demonstrates that Boab is committed to delivering metals for a sustainable future by developing the project. Sorby Hills is Australia’s largest undeveloped, near-surface lead-silver deposit located in the Tier 1 mining jurisdiction.

DO NOT MISS:  Boab Metals' (ASX: BML) Action-Packed March Quarter Sets Stage for Sorby Hills Project Success

What are the stock market catalysts for Boab Metals? 

Reliance on lead and silver for green shift

At present, the world is racing towards a sustainable transition to alternative/cleaner energy sources to counter the environmental challenges.  However, such a shift is strongly dependent on two critical metals – lead and silver, which are a part of the Sorby Hills deposit. 

ALSO READ: Sorby Hills project places Boab Metals at vantage point amid rising demand for lead and silver

Source: BML Presentation, dated 16 June 2021

Lead acid batteries are a low-cost and reliable source of 12V power for various functions in all types of vehicles. In addition, new high-performance lead battery technologies such as lead-crystal batteries are also being developed. 

Silver, being the most conductive metal on the planet and highly resistant to corrosion, is ideally suited for usage in solar panels, printed circuit boards and electrical contacts. Significantly, more than 55 ounces of silver is used annually in the electrical connections found in all types of vehicles. 

Exploration efforts on track to expand resource inventory

Since the acquisition of Sorby Hills in 2018, each drilling program undertaken by Boab Metals has led to a substantial uptlift in resource size and confidence. There has been nearly 46% increase in the total resource and 170% increase across the combined measured and indicated categories. 

In line with the Company’s track record, the Phase IV drill program has also proved highly significant in improving the geological confidence in the project resource. 

Boab is currently undertaking a Phase V drilling program targeting the high impact opportunities identified in the previous program as well as focusing on high-grade resources located at Alpha and Beta, which so far have not been included in the mine plan optimisations.

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

Together with the ongoing definitive feasibility study (DFS) metallurgical program, the Phase V drilling results will be used to assess the potential of increasing mine life and expanding the proposed processing capacity at Sorby Hills.

Strong demand for Sorby Hills’ lead-silver concentrate

Boab has held preliminary soundings with potential local and offshore customers for the Sorby Hills Pb-Ag concentrate offtakers. The soundings have proven that there is a strong appetite for the concentrate. The Company has received an initial indicative proposal extending attractive terms, which further validate the high quality of the product.

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

Boab has held encouraging meetings with Sorby Hills’ JV partner, Yuguang Gold and Lead Co., Ltd., which reaffirmed their strong appetite for the lead-silver concentrate from Sorby Hills while confirming their commitment to advance the project. 

The partners have decided to fast-track the finalisation of the Sorby Hills development and operations agreement, which would expedite engagement with project financiers.

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

 

Source: Copyright © 2021 Kalkine Media, Data Source: BML update, dated 16 June 2021


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