- Junior miner Boab Metals (BML) is edging closer and closer to fully developing its core Sorby Hills Lead-Silver-Zinc Project in Western Australia
- The company hit some major milestones over the March quarter as it spoke to potential offtake partners and Export Finance Australia (EFA)
- While the talks are in their early stages, Boab said top-tier offtake partners have expressed interest in Sorby Hills, and EFA has flagged plans to potentially help fund the project's development
- Further to this, Boab's joint venture partner, Yuguang Gold and Lead Co, has agreed to accelerate the final development work at the project
- Boab kicked off definitive feasibility study (DFS) metallurgical testwork at the project over the quarter, drilling 28 holes for 2116 metres as part of the program
- The company is now planning a fifth-phase drilling program for the project to maximise the value extracted from the Sorby Hills deposit for the DFS
- Shares in Boab Metals closed 1.2 per cent lower today at 41 cents per share
Junior miner Boab Metals (BML) is edging closer and closer to fully developing its core Sorby Hills Lead-Silver-Zinc Project in Western Australia.
The company owns 75 per cent of the Sorby project in a joint venture with Yuguang Gold and Lead Co, which is the biggest lead smelting company and the largest silver producer in China.
After years of exploration and development work, Boab said its joint venture partner has agreed to accelerate the finalisation of the Sorby Hills development and engage with project financiers.
As it stands, Boab had $14.1 million worth of funding available at the end of March to continue developing the project — over 17 full financial quarters based on March quarter spending levels. The company spent around $800,000 on operating activities over the March quarter.
Core Sorby Hills to development
As it builds the project up with its joint venture partner, Boab said it has also received indications of strong demand for silver offtake from the project.
Over the March quarter, Boab spoke to some top-tier local and offshore customer for lead-silver concentrate from Sorby Hills.
While no deals have been signed just yet, Boab said it received indicative offtake terms for Sorby Hills concentrate and important customer feedback, suggesting a "strong appetite" for mined material from the project.
The company said a tender process will kick off in the second quarter of 2021.
Further to this, Boab said it received a letter from Australia's export credit agency, Export Finance Australia (EFA), during the March quarter, in which EFA said subject to some further due diligence, it would consider helping finance the development of the Sorby Hills project.
In light of all this, Boab kicked off definitive feasibility study (DFS) metallurgical testwork at the project over the quarter, drilling 28 holes for 2116 metres as part of the program.
Boab Managing Director and CEO Simon Noon said the company hit a range of "significant" milestones over the March quarter.
"The support received from Export Finance Australia, positive feedback from potential offtake partners and the acceleration of the development and operations agreement provide Boab with immense confidence that the company will be well-positioned to attract project financing for Sorby Hills subsequent to the completion of the DFS," Simon said.
Looking ahead, Boab is now planning a fifth-phase drilling program for the project to maximise the value extracted from the Sorby Hills deposit for the DFS.
Under the new program, Boab will drill 6000 metres and target under-explored mineralisation pods, satellite exploration targets and mineralisation extensions.
Shares in Boab Metals closed 1.2 per cent lower today at 41 cents per share.