Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Boab Metals (BML) pushes back the delivery date of a definitive feasibility study (DFS) for its Sorby Hills lead-silver project in the Kimberly region of Western Australia
  • The company was originally expecting to release the DFS this quarter but is facing setbacks due to COVID-19, delaying the release to the second half of the year
  • The decision was made in order to incorporate tendered pricing and operational costs into the DFS
  • However, the company is progressing its connection study for the project and has received approvals to commence site establishment works
  • Shares in Boab Metals are trading 7.58 per cent lower today at 30 cents at 10:47 am AEST

Boab Metals (BML) has pushed back the delivery date of a definitive feasibility study (DFS) for its Sorby Hills lead-silver project in the Kimberly region of Western Australia.

The company was originally expecting to release the DFS this quarter but has faced setbacks due to COVID-19, delaying the release to the second half of the year.

The decision was made in order to incorporate tendered pricing and operational costs into the DFS.

Nevertheless, Managing Director and CEO Simon Noon said the delays mean the company can ensure the DFS accurately reflects costs.

“While we are disappointed not to be releasing the DFS this quarter as planned, we have decided that, in the current economic environment, it is prudent to take time to seek and incorporate tendered pricing for major capital and operating costs, including our open-pit mining contract, to ensure they are as accurate and competitive as possible,” Mr Noon said.

Despite the delays, Boab has made progress on other activities to continue the development of the project.

The company has received a number of engineering, procurement, and construction (EPC) tenders, which are priced in line with its expectations.

It is also expecting to undertake a competitive tender process for the Sorby Hills Mining Contract.

This includes receiving major approvals to commence site establishment works, which will allow project development to continue during the wet season.

It has also begun a connection study to deliver the transmission of cheaper and cleaner power to the project from the Ord River Hydroelectric Plant.

Shares in Boab Metals were trading 7.58 per cent lower today at 30 cents at 10:47 am AEST.

BML by the numbers
More From The Market Herald
The Market Herald Video

" Laneway Resources (ASX:LNY) reports further high-grade gold at Agate Creek

Laneway Resources (ASX:LNY) has continued to report high-grade gold assays from the Sherwood and Sherwood West…
The Market Herald Video

" Altech (ASX:ATC) partners with IKTS to fast-track Silumina Anodes qualification

Altech Chemicals (ASX:ATC) has executed a framework agreement with Fraunhofer IKTS to expedite the testing and…
The Market Herald Video

" Genesis Minerals (ASX:GMD) to merge with Dacian Gold (ASX:DCN) via takeover offer

Genesis Minerals (ASX:GMD) is looking at acquiring fellow ASX-listed materials stock Dacian Gold (ASX:DCN) for an…

" Emerald Resources (ASX:EMR) reports “exceptional” drill results from Neptune, WA

Emerald Resources (ASX:EMR) has reported “exceptional” drill results from the Neptune gold prospect in Western Australia.