Name of the Project
Sorby Hills lead/silver/zinc project.

Location
The project is located in the Kimberley region of Western Australia.

Project Owner/s
Boab Metals (75%), formerly Pacifico Minerals, and joint venture (JV) partner Henan Yuguang Gold and Lead Company, which holds a 25% interest in the Sorby Hills project.
 

Project Description
The Sorby Hills project is the biggest undeveloped, near-surface lead/silver/zinc deposit in Australia. It comprises five granted mining leases covering six known lead/silver/zinc deposits.

The prefeasibility study (PFS) has highlighted the low-risk nature of the project, with a well-defined large-scale mineral resource, a simple crush-mill-float processing circuit, high metal recoveries and key approvals received.

The project has a mineral resource of 44.1-million tonnes at 3.3% lead, 38 g/t silver and 0.5% zinc, and proven and probable reserves of 13.6-million tonnes at 3.6% lead and 40 g/t silver.

The PFS base case incorporates the openpit mining of 14.8-million tonnes of ore from four deposits – Omega, A, B and the southern portion of Norton – over a ten-year mine life.

Mined ore will be treated through a simple crush-mill-flotation circuit at 1.5-million tonnes a year to produce 807 000 dry tonnes of lead/silver concentrate with an average grade of 62% lead and 580 g/t silver.

The PFS has demonstrated that the inclusion of a dense-media separation circuit enhances flotation feed grade, increases ore throughput and allows for the economic treatment of lower-grade ore.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$303-million and an internal rate of return of 46%, with a payback of 1.6 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$182.8-million.

Planned Start/End Date
Not stated.

Latest Developments
The Sorby Hills JV partners have agreed on a programme and budget for the project's definitive feasibility study (DFS), following a successful PFS in 2020.

Boab Metals has reported that its JV partner, Henan Yuguang Gold and Lead Company, has also expressed interest in potentially increasing its offtake participation above which it is currently entitled.

Boab intends to run an offtaker selection process over the coming months to allocate the offtake rights of its 75% interest in the Sorby Hills production.

“Yuguang’s support of the project has been unwavering, and its financial contribution towards the DFS work programme will enable the company to fully leverage the cash that has been raised to date for value-adding activities, such as extension drilling and, potentially, early capital works,” Boab MD Simon Noon has said.

“To have a partner of Yuguang’s stature continuing to back the project not only provides us with immense confidence as we move towards a decision to mine but also sends a strong signal to potential financiers that the interests of the project owners and project customers are deeply aligned.”

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Boab Metals, tel +61 8 6268 0449 or email info@BoabMetals.com.