- Boab Metals (BML) has reported a strong global demand for lead-silver concentrate from its 75 per cent-owned Sorby Hills Project in WA
- Since January, Boab has been undertaking preliminary discussions to assess the demand for its lead-silver concentrate and to gain customer feedback for an upcoming definitive feasibility study (DFS)
- The discussions have confirmed the demand for a high-value concentrate product in line with specifications detailed in last year’s pre-feasibility study
- A DFS is expected to wrap up next quarter, by which time offtake discussions and a competitive tender process will resume
- The tender process will seek interest from a a wide range of potential offtakers
- Company shares are up 10.8 per cent and are trading at 41 cents
Boab Metals (BML) has reported strong global demand for lead-silver concentrate from its Sorby Hills Project in WA.
Boab owns a 75-per-cent-interest in the lead-silver-zinc project, with China-based Henan Yuguang Gold & Lead Co holding the remaining 25 per cent.
In January, the company began a preliminary offtake sounding process with base metals customers to potentially produce lead-silver concentrate from the project.
The discussions also enabled Boab to build relationships with potential offtake partners, define offtake terms and gain customer feedback to support a definitive feasibility study (DFS).
According to the company, the process has been extremely positive and confirmed a high-demand for Boab to produce the concentrate product based on the specifications outlined in its pre-feasibility study (PFS), which was released in August 2020.
The PFS outlined Sorby Hills to be a low-risk operation that will process 1.5 million tonnes per annum from four open pit deposits. The project is expected to produce an average 81,000 dry metric tonnes of concentrate per year containing 50,000 tonnes of lead and 1.5 million ounces of silver.
The final lead-silver concentrate will be exported via the Port of Wyndham and is expected to generate nearly $2 billion in sales over an initial 10-year mine life.
“The confirmation by this select group of base metals traders and producers that our lead-silver concentrate is highly desirable provides us with a high amount of
confidence that we will have binding offtake on highly competitive terms agreed in advance of completing the DFS,” CEO Simon Noon said.
The DFS metallurgical program is expected to wrap up next quarter, by which time offtake discussions and a competitive tender process will resume. The tender process will seek interest from a a wide range of potential offtakers.
Company shares are up 10.8 per cent and are trading at 41 cents at 1:20 pm AEDT.