Name of the Project
Sorby Hills lead/silver/zinc project.

Location
About 50 km from the regional centre of Kununurra, in Western Australia.

Project Owner/s
Boab Metals (75%), and joint venture partner Henan Yuguang Gold and Lead Company (25%).

Project Description
The project is the biggest undeveloped, near-surface lead/silver/zinc deposit in Australia. It comprises mining leases covering six known lead/silver/zinc deposits in the Kimberley region.

The project has an openpit mining inventory of 18.3-million tonnes at an average grade of 3.4% lead and 39 g/t silver. Proposed production is underpinned  by ore reserves of 83%.

The project proposes an operation with a 2.25-million-tonne-a-year-capacity conventional flotation process plant, producing an average of 103 000 t/y of lead/silver concentrate containing 64 000 t of lead and two-million ounces of silver.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$411-million and an internal rate of return of 37%.

Capital Expenditure
Preproduction capital expenditure is estimated at A$265-million.

Planned Start/End Date
A final investment decision (FID) is targeted for the fourth quarter of 2025.

Latest Developments
Boab Metals has raised A$50-million through a two-tranche placement to professional and sophisticated investors to fund the development of the project.

The funds will go towards early development works, acquiring the remaining 25% interest in Sorby Hills, meeting the FID payment for the DeGrussa plant acquisition and general working capital.

The placement comprises 125-million new shares priced at A$0.40 each, representing an 11.1% discount to the five-day volume-weighted average price. The offer will be split into two tranches: an initial A$5-million placement under Boab’s existing capacity, followed by a A$45-million issue subject to shareholder approval at the company’s annual general meeting in November.

Boab expects the first tranche to settle on October 20 and the shares to be issued on about October 21. The second tranche will be issued following shareholder approval.

Key Contracts, Suppliers and Consultants
CSA Global (resource assessment); Entech (mining studies); Strategic Metallurgy, ALS Metallurgy, MicroAnalysis Australia (metallurgical testwork); Primero (process plant); Tetra Tech Coffey (infrastructure and tailings storage); GHD Consulting Engineers (dewatering and water supply); Minerals to Market (product logistics); Animal Plant Mineral (environmental studies); Green Values Australia (approvals); and BurnVoir Corporate Finance (financial analysis).

Contact Details for Project Information
Boab Metals, tel +61 8 6268 0449 or email info@BoabMetals.com.