PERTH (miningweekly.com) – The Sorby Hill joint venture (JV) partners have recommitted to the project’s development, ASX-listed Boab Metals said on Thursday.
Boab told shareholders that the company and its JV partner Henan Yuguang Gold and Lead Co have agreed to accelerate finalising the development and operations agreement for the Sorby Hills base metals project, in Western Australia.
Boab said that advancing the development and operations agreement would help facilitate engagement with potential financiers, and would enable a smooth transition from the definitive feasibility study (DFS) into project development and construction.
“The JV development and operation agreement is an important element of our progress towards bringing Sorby Hills into production. The JV’s commitment to advancing the finalization of this agreement represents a further opportunity to de-risk project financing and execution,” said Boab MD and CEO Simon Noon.
A 2020 DFS found that the project would require a capital investment of A$183-million to produce at a rate of 1.5-million tonnes a year, producing 500 000 t of lead and 15-million ounces of silver over a mine life of ten years.
Boab told shareholders on Thursday that the company has already engaged with the Northern Australian Infrastructure Facility and the Export Finance Facility regarding potential finance for the project, and is hoping to progress discussions with commercial lenders in the coming months, in conjunction with advancing the development and operations agreement with Yuguang.
Boab will also be undertaking a competitive offtake tender process for its 75% share of the Sorby Hills concentrate production.