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Boab Metals Limited (ASX: BML) (“Boab” or the “Company”) is pleased to report assay results including a material intercept from the 1st drill hole at the Keep Seismic Target from the Phase VII drilling program at its 75% owned Sorby Hills Lead-Silver-Zinc Project (“Sorby Hills” or “the Project”), located in the Kimberley Region of Western Australia.
HIGHLIGHTS
- Drilling of the “Keep Seismic Target” intercepts significant base metal mineralisation.
- SHSD_185: 9.55 m @ 5.10% PbEq (2.59% Pb & 2.26% Zn) and 17.6 g/t Ag from 242.55 m
- Incl. 3.12 m @ 13.43% PbEq (6.37% Pb & 6.36% Zn) and 26.5 g/t Ag from 245.36m
- Intercepts of the exceptional grade and composition at the Norton Ore body:
- SHSD_171: 11.05 m @ 17.63% PbEq (10.98% Pb & 189 g/t Ag) from 81.95m
- SHSD_174: 11.60 m @ 20.23% PbEq (8.78%Pb & 325 g/t Ag) from 74.40m
- Metallurgical test work now underway to establish uniformity of the Norton deposit metallurgy with other ore domains of the Sorby Hills deposit.
- Significant exploration drill hole intercepts:
- SHSD_164: 6m @ 9.92% PbEq (3.92% Pb & 170g/t Ag) from 101m
- SHSD_183: 2m @ 6.85% PbEq (4.43% Pb & 69g/t Ag) from 103m
- SHSD_184: 2.8m @ 3.84% PbEq (3.17%Pb & 19g/t Ag from 129m
Boab Managing Director and CEO, Simon Noon, stated:
“We are very excited to confirm that the drill hole at the Keep Seismic Target has intersected zinc- lead sulphide mineralisation between 242 and 257m as was anticipated. This is an outstanding success given the conceptual nature of the target and its location in an area, and at a depth where no mineralisation has been intersected before. The location of the drill hole sits around 2 km away from the closest ore reserves at Sorby Hills and will be a catalyst for further exploration within our mining tenements.
It is clear there is more to be discovered at Sorby Hills. The step-out drill holes at Norton and at Beta also confirmed the continuity of mineralisation.
In conjunction with our 2023 drill program, Boab continues to advance toward a final investment decision on the Sorby Hills Project with preferred EPC contractor GRES firming up Front End Engineering & Design work whilst discussions with financiers is ongoing”.
Phase VII Program Details
The Phase VII drilling program concluded with the completion of 22 drill holes for 2,634 (an additional 24% of metres than originally planned). Of the total program, 1,433 m across 13 holes were drilled for a metallurgical purpose with another 1,200m across 9 holes drilled for resource/reserve expansion and exploratory objectives.
Collar locations for all the completed drill holes are shown below in (Figure 1).
Figure 1: Plan view of the Sorby Hills Project showing the locations of completed drill holes for Phase VII with respect to previous drilling, the Mineral Resource and DFS open pit outlines.
Exploration and Resource Extension Drilling
The resource extension/exploratory drilling targeted the periphery of the known mineralisation, areas of lower confidence in the ore distribution and a conceptual target.
Keep Seismic Target
The highlight of the 1st drill hole into the conceptual target is:
- SHSD_185: 9.55 m @ 5.10% PbEq (2.59% Pb & 2.26% Zn) from 242.55 m
Incl. 3.12 m @ 13.43% PbEq (6.37% Pb & 6.36% Zn) and 26.5 g/t Ag from 245.36m
As announced in October 2023, the interpretation of seismic data from petroleum exploration across the Burt Range Sub-Basin resulted in a conceptual drill target – the Keep Seismic Target. A 306.5m deep drill hole was successfully drilled into the target’s depth range.
Seismic line WP96-08 traverses the project area about 2 km south of B-Deposit and shows the reflectors of the Devonian-Carboniferous sedimentary strata gradually dip to the east and affected by a series of extensional faults (Figures 2 and 3) leading into a half-graben structure flanked on the eastern side by a reef covered basement high which was targeted by the Pincombe No 1 petroleum well, drilled in 1996.
SHSD_185 was aimed at testing the potential for a mineralised feeder fault system, which can be seen in the seismic data, and the potential for stratiform mineralisation at the Knox Formation/Sorby Dolomite interface (Figure 3).
The drill hole intersected the base of the Knox Formation at about 224.6m and was terminated at a depth of 306.5m within massive Sorby Dolomite after intersecting two intervals of mineralisation (Figure 3).
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Boab Metals Limited
Investor Insight
Boab Metals is well-positioned to capitalize on the rising demand for lead and silver, delivering value to shareholders and supporting the global transition to sustainable energy systems.
Overview
Boab Metals (ASX:BML) is an ASX-listed base and precious metals explorer and developer with a flagship project poised for near-term production. Boab Metals is progressing toward a final investment decision (FID) on its Sorby Hills project, a world-class lead-silver deposit, underpinned .
Strategically located 150 km from Wyndham Port, the Sorby Hills project benefits from excellent infrastructure, including access to green power from the Ord River hydroelectric plant. The company's strategy combines technical expertise, sustainable practices, and robust financial planning to advance the Sorby Hills project, which is slated to produce high-grade lead-silver concentrate through conventional open-pit mining.
Strong economics underpin the project with a net present value (8 percent) of AU$411 million and a 37 percent internal rate of return, as confirmed by the completed front-end engineering design (FEED) study. Life-of-mine operating cash flow is pegged at AU$1.1 billion with an average annual EBITDA of AU$126 million. It boasts a competitive C1 cash cost of US$0.36/lb payable lead (after considering silver credits).
Further boosting the prospects of the Sorby Hills project a binding offtake and prepayment agreements with Trafigura, which ensured 75 percent of the lead-silver concentrate produced at Sorby Hills is pre-sold, providing a cornerstone financial foundation.
Company Highlights
- Boab Metals is an ASX-listed base and precious metals explorer and developer with a flagship project poised for near-term production.
- The Sorby Hills project, Boab’s flagship asset, boasts a high-quality 47.3 Mt resource at 4.3 percent lead equivalent (123 g/t silver equivalent), including 53 Moz contained silver, and is in Western Australia, 50 km northeast of Kununurra.
- Strong economics underpin the project with an NPV (8 percent) of AU$411 million and an IRR of 37 percent, as confirmed by the completed FEED study. Life-of-mine operating cash flow of AU$1.1 billion with an average annual EBITDA of AU$126 million. Competitive C1 cash cost of US$0.36/lb payable lead (after considering silver credits).
- Binding offtake and prepayment agreements with Trafigura.
- Access to green hydroelectric power and existing environmental approvals enhance the project’s sustainability credentials and support reduced operational costs.
- Committed to community engagement, Boab Metals fosters strong relationships with local stakeholders and supports regional development initiatives.
- Expert leadership with a proven track record in exploration and development of mining assets
Key Project
Sorby Hills Project
Boab Metals owns 75 percent of the Sorby Hills Project, with the remaining 25 percent held by Henan Yuguang Gold & Lead Co., China's largest lead smelting and silver producer. The project boasts a substantial, high-quality resource base of 47.3 million ton resource base at 4.3 percent lead equivalent (123 g/t silver equivalent), including 53 million ounces of contained silver, all with significant exploration upside.
Project Highlights
- Strategic Location: Situated in the Kimberley region of Western Australia, 50 km northeast of Kununurra, Sorby Hills benefits from proximity to existing infrastructure, including access to the Wyndham Port, facilitating efficient export routes to Asian markets.
- Low-risk Mining: Conventional open-pit mining with a shallow, high-grade orebody, ensuring rapid payback and early cashflows.
- Straightforward Conventional Processing: The process plant employs a crush-mill-flotation circuit to produce high-grade lead-silver concentrate, achieving metallurgical recoveries of 92 percent for lead and 82 percent for silver.
- Infrastructure and Accessibility: Excellent infrastructure, including sealed roads to Wyndham Port, facilitates efficient transport and export logistics.
- Exploration Upside: Potential for near-pit resource growth and regional discoveries at prospects like the Keep zinc-lead target and Eight Mile Creek.
- Sustainable Project: Powered by ~90 percent renewable energy from the Ord River hydroelectric plant. Opportunities are being explored to eliminate diesel power backups, further reducing emissions.
- Community Engagement: Boab Metals actively supports local initiatives, including partnerships with the Teach Learn Grow program and sponsorship of the Ord Valley Muster, which fosters community development in the East Kimberley region.
- Key Milestones Ahead: The company expects to finalize all regulatory approvals and secure debt financing to support project development by the first half of 2025, with construction and development expected by the second half of 2025. Boab Metals also plans to conduct infill drilling and exploration to expand the resource and refine the reserves.
Management Team
Gary Comb – Chairman
An engineer with over 30 years of experience in the Australian mining industry, Gary Comb has a strong track record in successfully commissioning and operating base metal mines. He previously served as chairman of Finders Resources, and was the managing director of Jabiru Metals and CEO of BGC Contracting.
Simon Noon – Managing Director & CEO
Appointed on October 19, 2013, Simon Noon brings more than 15 years of experience managing public resource companies. He has a strong background in strategic management, business planning, finance and capital raising across various commodities. Noon's notable achievements include leading the acquisition and development of the Sorby Hills project, resulting in a 50 percent increase in the mineral resource and the delivery of high-quality feasibility studies
Richard Monti – Non-executive Director
A geologist with a successful career spanning over 30 years in the international mineral resource industry, Richard Monti has broad industry knowledge and strong strategic planning capabilities. He has more than 46 years of directorship experience in 13 ASX and TSX listed mining and exploration companies, building and managing teams of up to 70 personnel.
Andrew Parker – Non-executive Director
Holding a Bachelor of Laws degree from the University of Western Australia, Andrew Parker has significant experience in the exploration and mining industry, with expertise in corporate advisory, strategic consultancy, and capital raising. Before joining Boab Metals, he co-founded Trident Capital, a corporate advisory and venture capital firm.Boab Metals Limited Investor Kit
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