Boab Metals Ltd - Boab Metals (ASX:BML) Announces Plans for a Phase V Drilling Program
Boab Metals Ltd (ASX:BML)

Boab Metals (ASX:BML) Announces Plans for a Phase V Drilling Program


What has happened?

Boab Metals (ASX:BML) announced plans for a Phase V drilling program set to commence in April 2021 at the conclusion of the wet season. The purpose of the Phase V drilling program is to investigate the potential to expand the proposed processing capacity at the 75% owned Sorby Hills Lead-Silver-Zinc Project, located in the Kimberley Region of Western Australia.

What are the key highlights?

  • A recent Boab Pre-Feasibility Study (PFS) confirmed that the 75% owned Sorby Hills site is underpinned by a large near surface Lead-Silver-Zinc deposit comprising a Mineral Resource of 44.1Mt at 3.3% Lead, 38g/t Silver and 0.5% Zinc, and Proved and Probable Reserves of 13.6Mt at 3.6% Lead, and 40g/t Silver.
  • The proposed Phase V drilling program will include up to 6,000m of high impact drilling with the primary objectives of the program being to materially increase the mining inventory at Sorby Hills and to investigate the potential to increase the processing plant capacity.
  • The PFS highlights the low-risk nature of the Sorby Hills Project with a well-defined large-scale Mineral Resource, conventional crush-mill-float processing circuit, high metal recoveries and key approvals received.


What does this announcement mean?

SmallCapInsider from Mawson Graham provides perspective on this recent announcement.
Written by SmallCapInsider
Published Feb 11, 2021

What does this mean?

Boab’s planned Phase V drilling program will aim to investigate the potential to expand the proposed processing capacity at the 75% owned Sorby Hills Lead-Silver-Zinc Project. The drilling program will last approximately 3 months and will commence in April at the conclusion of the wet season. This program may prove to be significant, as the last three drilling campaigns conducted by Boab increased Resource tonnage by 50% and approximately tripled the contained metal classified as Measured and Indicated. Most importantly, Boab has converted Resource growth into a high-quality mining inventory with the Sorby Hills PFS underpinned by 50% Proven and 50% Probable Reserves.


On the back of positive results from the Phase IV drilling program, Boab has formed the view that a significant opportunity exists to materially expand the Sorby Hills mining inventory. With nearly A$15M cash on hand and metallurgical and geotechnical drilling now complete, the Company is well positioned to invest in a high impact drilling program to maximise the value extracted from the Sorby Hills deposit for the purpose of the Definitive Feasibility Study (DFS). The results of the Phase V drill program will dovetail with those of the ongoing DFS Metallurgical program and act as inputs to an investigation into the potential to expand the currently proposed processing capacity at Sorby Hills.

Some of the potential benefits of expanding the processing capacity may include lower capital costs and operating costs per tonne of concentrate produced. This can lead to more robust project economics such as a shorter payback period, higher operating margins and increased operating cash-flows. Ultimately, this could serve to add value to Boab shareholders in the long term.

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