Boab Metals Ltd Company Profile

A near surface lead-silver development to support a clean energy future

Boab Metals Limited (ASX:BML) is developing a significant lead-silver project at Sorby Hills in partnership with China's largest lead smelting enterprise and silver producer.

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    Boab Metals Ltd
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    Metals & Mining
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    Diversified Metals & Mining
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Company Overview

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Boab Metals (ASX:BML) is a resource exploration and development company based in Western Australia. The company's flagship project is the Sorby Hills Joint Venture Project in which it has a 75% stake. Sorby Hills is located 50km from the regional centre of Kununurra. There are existing sealed roads to transport concentrate from site to the facilities at Wyndham Port, a distance of 150km, and established infrastructure allows for fast track production. Henan Yuguang Gold Lead Co. Ltd is the other joint venture partner with a 25% interest in the project. Henan Yuguang is China's largest lead smelting enterprise and the largest silver producer in China. The company's focus is to bring the Sorby Hill Joint Venture Project into production.

The company also has a variety of other non-core assets. This includes the Borroloola West JV project (51% interest in partnership with Sandfire Resources (ASX:SFR) at 49%), Mount Jukes in Tasmania (12% interest) and Colombian Projects prospective for economic Copper-Gold deposits.

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Developing a near-surface lead-silver project in WA for a clean energy future

Boab Metals (ASX:BML) is focusing on the development of its Sorby Hill Joint Venture Project, a large near-surface lead-silver-zinc deposit. Sorby Hill is situated in a politically stable jurisdiction with access to local infrastructure and is partnered with Henan Yugang Gold Lead Co, China's largest lead smelting and silver producer.
Right Location

The Sorby Hills JV Project is situated in a politically stable jurisdiction with access to existing infrastructure. The deposit is close to surface which allows for simple conventional mining.

Clean Energy

Lead batteries are a key element in the transition to a low carbon economy. Electric vehicles use a separate lead battery to run their battery management and safety systems.

Strategic Partner

Henan Yugang Gold Lead Co, China's largest lead smelting enterprise and silver producer, hold a 25% stake in the Sorby Hills JV. This partnership is expected to help with off-take and financing.

Latest Presentation

Click here to read the company's latest presentation

A-Grade Jurisdiction

The Sorby Hills Project is situated only 50km north-east from Kununurra, a regional centre in WA. It is made up of 42km2 of mining licenses and 217km2 of exploration licenses. Existing infrastructure, which includes a sealed road to Wyndham port, means that fast tracked production at a lower CAPEX is possible.

Research Report

Click here to read research coverage on the company

Simple geology & metallurgy

Sorby Hills has a JORC Global Resource of 44.1 Mt at 4.5% Pb equivalent (including silver credits). The deposit is near-surface and it remains open along strike and down dip. The resource now stands at 20.8mt Measured (7.1mt) & Indicated (13.7mt) at 4.9% Pb equivalent and 1% Pb cut off. In addition, in August 2020 as part of the company's PFS a total JORC Ore Reserve of 13.6Mt at 3.6% Pb and 40g/t Ag was also announced.

Mineral Resource Update

Click here to see the recent MRE update

Approvals & Strategic Land Holding

The Sorby Hills Project consists of pre-native title tenements that have been granted mining and environmental approvals for open pit mining and the associated infrastructure. Furthermore, Boab Metals have expanded its strategic land holding through the acquisition of "Eight Mile Creek", which is 100% BML owned covering 217 km² and adds 30km of strike length adjacent to the Sorby Hills deposit.

Strategic Land Holding

Click here to read about additional tenement acquisition

Pre-Feasibility Study

In August 2020 the company released its Sorby Hills PFS and reported a A$303M NPV8, 46% IRR and ~1.6 year payback period. Significantly, the economic assumptions underpinning the PFS are based on conservative 10 year average lead and silver prices. Expansion potential on this base-case also remains via the inclusion of a Dense Media Separator ("DMS") and through the exploration of near-mine targets which could potentially expand the resource. Boab Metals are now able to begin DFS and other related activities. Click the link below for more information.

Sorby Hills PFS

Click here to read the Sorby Hills PFS

Why lead?

The base case for mined lead shows a deficit from 2023 without new mine supply. Fueling demand is the transition to a low carbon economy. Electric vehicles use a separate lead battery to run their battery management and safety systems. In addition, 50% of all new vehicles will have stop-start technology by the end of 2020 and will contain 25% more lead. Automative batteries account for 86% of refined lead.

Strategic Partner

Boab Metals is partnered with Henan Yuguang Gold Lead Co (HYG) which owns a 25% stake in the Sorby Hills JV. HYG is China's largest lead smelting and silver producer. Its plants are largely modern, focussed on development of industrial technology and are environmentally friendly. Discussions with HYG for the best financing options for Sorby Hills are ongoing.

Directors & Management

Senior management have a strong track record of creating value in junior mining companies, and includes the successful commissioning and operating of base metal mines.
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Gary Comb
Executive Chairman
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Simon Noon
Managing Director
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Richard Monti
Non-Executive Director
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Andrew Parker
Non-Executive Director

Boab Metals (ASX:BML) Gallery

Clock icon Information current at 25 August 2020

Analyst Commentary

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Is this next ASX company to be producing meaningful amounts of silver?

Written by SmallCapInsider
Published Feb 03, 2021

Following the recent short squeeze of GameStop (GME) and AMC Entertainment Holdings (AMC) which saw share prices surge 1600% and 800% respectively, there are reports that a silver squeeze under the hashtag "#silversqueeze" could be next with the spot price of the precious metal surging, albeit temporarily as all "squeezes" are.

Outside of the hype, it did prompt us to have a fresh look at the commodity. The fundamentals of silver started to look particularly interesting around early 2020. The recent Biden administration's win saw them further bolstered with prices rising by almost 80% since its low in March last year, making it the best performing metal of 2020. Furthermore, silvers reputation as a safe-haven asset and its association with electrification/renewables may see the price rise even higher in the long term as demand increases for the metal.


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Although the exact future price of silver remains uncertain, its status as a safe-haven asset and an alternative to gold provides a degree of price support as the aftermath of Covid-19 casts uncertainty on economic and financial market performance.

For investors looking for leveraged plays on silver; one company we've been working with and following for several months called Boab Minerals (ASX:BML), may be poised to gain if silver markets continue to see an increased level of interest. The company, formerly Pacifico Minerals, seems well-positioned to capitalise on the recent shift in commodity prices after announcing promising news from its Pre-Feasibility Study (PFS) of the Sorby Hills Lead-Zinc-Copper project which could stand to produce 1.5Moz of silver per annum based on life-of-mine averages. The PFS aided in highlighting the comparatively low-risk nature of the Sorby Hills Project with a large-scale mineral resource.


These developments have not gone unseen by investors with the share price rocketing by 575% since last year late April and jumping 19.78% (as at 01/02/2021) following today's market buying spree. The large jump in price was partly helped by a reverse stock split or stock consolidation in December of 2020.

The reason why the PFS completed by Boab proves so vitally important is that it effectively confirmed that Sorby Hills is underpinned by a large near-surface Lead-Silver-Zinc deposit comprising of a Mineral Resource of 44.1Mt at 3.3% Lead, 38g/t of silver and 0.5% Zinc, and Proved and Probable Reserves of 13.6Mt at 3.6% Lead, and 40g/t of silver. BMY also launched the Phase IV drilling program to advance the Project towards Definitive Feasibility (DFS) status. The Phase IV drilling program was initially launched to highlight the significant upside potential of the Sorby Hills Mineral Resource. See below for the current mining resource and ore reserve figures.


The purpose of a DFS is to provide investors with a high degree of accuracy that the project is technically and financially robust.

As with any pre-production company, there are the usual risks that something unexpected comes up in the DFS, drilling program, or overall correlation with silver markets – however, these things generally tend to be "priced in" for small companies. Investors focused solely on short term investments should bear in mind that investing only on flash trends increases risk and uncertainty, therefore having a long term view on silver and the company is prudent.

However, for investors comfortable with the conclusions of their own independent research, Boab Minerals (ASX:BML) seems well exposed to the silver markets if the tailwinds continue.

If you've got any specific questions about BML and would like to talk with one of our analysts working on the company, feel free to send us an email at [email protected] or give us a call on 1300 131 551.

The information within this section has been provided by Mawson Graham and is for general information purposes only and is not intended to reflect any recommendations or financial advice. The information in this section has been prepared without taking into account your objectives, financial situation or needs. For this reason, you should consider the appropriateness of the advice or recommendation in light of your own personal circumstances, relevant risk factors, the nature and extent of your risk of loss, as well as the legal and accounting consequences before acting making an investment or trading decision regarding any Financial Product mentioned herein. While it is believed that all information sourced and contained within this section to be accurate at the time of publication, liability for any errors, omissions, accuracy or completeness of the information (except any statutory liability which cannot be excluded) is specifically excluded by Mawson Graham, its associates, officers, directors, employees and agents. Past performance is not a reliable indicator of future performance. Important Disclosure: Mawson Graham, its directors, associates and employees advise that they may hold securities, may have an interest in and/or earn brokerage, investor relations fees, corporate fees, and other benefits or advantages, either directly or indirectly from client transactions arising from any information mentioned within this section and in documents published within this section.
Mawson Graham
Mawson Graham

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