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Sorby Hills lead/silver/zinc project, Australia – update

Location map of the Sorby Hills project

Photo by Boab Metals

12th September 2025

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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

Location
About 50 km from the regional centre of Kununurra, in Western Australia.

Project Owner/s
Boab Metals (75%), and joint venture partner Henan Yuguang Gold and Lead Company (25%).

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

The project has an openpit mining inventory of 18.3-million tonnes at an average grade of 3.4% lead and 39 g/t silver. Proposed production is underpinned  by ore reserves of 83%.

The project proposes an operation with a 2.25-million-tonne-a-year-capacity conventional flotation process plant, producing an average of 103 000 t/y of lead/silver concentrate containing 64 000 t of lead and two-million ounces of silver.

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$411-million and an internal rate of return of 37%.

Capital Expenditure
Preproduction capital expenditure is estimated at A$265-million.

Planned Start/End Date
A final investment decision (FID) is targeted for the fourth quarter of 2025.

Latest Developments
Boab Metals has extended its option agreement with Henan Yuguang until December 31, 2025, to acquire the remaining 25% interest in the project. 

The extension enables Boab to complete key workstreams ahead of an FID. Since signing the option in September 2024, Boab has secured a binding offtake and $30-million prepayment deal with Trafigura, ensuring product marketability, and agreed to acquire Sandfire Resources’ DeGrussa processing plant for relocation to Sorby Hills, reducing execution risk. 

The company has also gained crucial state and federal environmental approvals, including those under the EPBC Act.

Key Contracts, Suppliers and Consultants
CSA Global (resource assessment); Entech (mining studies); Strategic Metallurgy, ALS Metallurgy, MicroAnalysis Australia (metallurgical testwork); Primero (process plant); Tetra Tech Coffey (infrastructure and tailings storage); GHD Consulting Engineers (dewatering and water supply); Minerals to Market (product logistics); Animal Plant Mineral (environmental studies); Green Values Australia (approvals); and BurnVoir Corporate Finance (financial analysis).

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

Edited by Creamer Media Reporter

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