- 01Sorby Hills plan: 10.5y life; first concentrate Sep 2027.
- 02NPV A$1.06b IRR 97% LOM FCF A$1.7b capex A$262m.
- 03Funding: >A$350m secured; 2.1 Moz Ag, 60 kt Pb p.a.
Boab Metals (ASX: BML) has set out an updated delivery plan for its 100%-owned Sorby Hills silver-lead project in Western Australia, extending the mine life to 10.5 years and targeting first concentrate production in the September quarter of 2027.
The base case delivers a pre-tax net present value at an 8% discount rate of A$1.06 billion and an internal rate of return of 97%, with A$1.7b of life-of-mine free cash flow and total capital expenditure of A$262 million.
Boab has A$205m of CapEx remaining, including A$17m of contingency, while the expanded plan targets average annual production of 2.1 million ounces of silver and 60,000 tonnes of lead.
Boab has secured more than A$350m of debt and equity funding to carry Sorby Hills through construction and commissioning, with an expanded resource and reserve base and optimised mine schedule underpinning the plan alongside binding terms for mining services starting in early 2027.
Construction and Economics Converge
About A$56m of total project capex had been incurred by the end of August, with most of the remaining expenditure covered by fixed-price engineering, procurement, and construction contracts across key work packages.
Early works and the first stage of the accommodation village are complete and bulk earthworks are well advanced, while relocation of the acquired DeGrussa process plant has begun alongside foundation construction at Sorby Hills.
The revised mine schedule brings forward higher-value Norton ore, while metallurgical test work lifted estimated Norton lead recovery to 88.4% from 83% and silver recovery to 83.3% from 78%, with an approximately A$5m plant upgrade estimated to ±30% deferred until 2029.
“Our focus is now firmly on safely delivering construction, maintaining discipline around cost and schedule, and preparing for commissioning and operations,” chief executive officer Simon Noon said.
“With construction advancing and funding secured, Sorby Hills is well positioned to become a long-life Australian silver-lead operation, with further value potential through resource and reserve growth, continued optimisation, and significant exposure to silver.”
Resource Growth Supports Longer Plan
The updated mineral resource estimate stands at 50.6 million tonnes at 3.0% lead, 34 grams per tonne silver, and 0.4% zinc, representing a 7% increase in resource tonnage from the previous estimate.
Measured and Indicated resources across the Bimota, Omega, and Norton deposits increased by 10%, while a net smelter return approach to mineralisation domains contributed an additional 1.6Moz of contained silver.
The revised Ore Reserve has increased by about 20% to 18.3Mt at 3.2% lead and 37.3g/t silver, including 22Moz of silver, with contained silver up 15% and contained lead up 10% from the previous reserve.
Those changes support a 22Mt production target containing about 690,000t of lead and 26Moz of silver, extending the planned mine life from 8.5 years to 10.5 years, with recent 47-hole Phase IX drilling results not yet incorporated into the MRE providing an additional source of potential resource growth.
The production target comprises 53% Measured resources, 31% Indicated resources, and 16% Inferred resources.
Mining Mobilisation Scheduled
Boab has executed a binding heads of agreement (HOA) with RE:GROUP Australia for mining services covering the scope of services, pricing, mine planning, production requirements, and commencement dates.
Site establishment is scheduled to start on 15 January 2027 and mining services are due to begin no later than 1 March 2027, aligning mine mobilisation with the broader construction and commissioning schedule.
The definitive Mining Services Contract is substantially complete and the parties are targeting execution within two weeks of the HOA, adding contractual certainty to one of the project’s main operating packages before mining begins.
Boab is also progressing power, water, and concentrate logistics infrastructure, including a self-funded diesel power station for commissioning and a 10-year port access and stevedoring agreement to support concentrate exports from Wyndham Port.
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