PERTH (miningweekly.com) – The Sorby Hills joint venture (JV) partners have agreed on a programme and budget for the project's definitive feasibility study (DFS), following a successful prefeasibility study (PFS) in 2020.
ASX-listed Boab Metals on Thursday said that its JV partner Henan Yuguang Gold and Lead Company, which holds a 25% interest in the Sorby Hills project, had also expressed interest in potentially increasing its offtake participation above which it is currently entitled to.
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 their financial contribution towards the DFS work programme will allow the company to fully leverage the cash that has been raised to date into value-adding activities such as extension drilling and, potentially, early capital works,” said Boab MD Simon Noon.
“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 sends a strong signal to potential financiers that the interests of the project owners and project customers are deeply aligned.”
The previously completed PFS estimated that the Sorby Hills lead/silver/zinc project would require a capital investment of A$183-million, and that the project could produce some 81 000 t/y of 62% lead/silver concentrate containing 50 000 t/y of recovered lead and 1.5-million ounces a year of recovered silver, across an initial ten-year mine life.
The study was based on a mineral resource estimate of 44.1-million tonnes and a proven and probable reserve of 13.6-million tonnes, at 3.6% lead and 40 g/t silver.