Boab Metals has obtained Federal environmental approval for its Sorby Hills silver-lead-zinc project, clearing a major hurdle towards development and a final investment decision later this year.
- Federal EPBC Act approval granted for Sorby Hills Project
- Approval covers open-pit mining and key infrastructure construction
- Project located 50km northeast of Kununurra in Western Australia
- Boab targets Final Investment Decision in Q4 2025
- Boab holds 75% interest, with option to acquire remaining 25%
Environmental Approval Clears Path
Boab Metals Limited has reached a significant milestone with the granting of approval under the Federal Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) for its Sorby Hills Silver-Lead-Zinc Project. This green light from regulators is a critical step that allows the company to proceed with plans for an open-pit mine and the construction of essential infrastructure such as a tailings storage facility and evaporation pond.
Strategic Location and Infrastructure
The Sorby Hills project is strategically positioned about 50 kilometres northeast of Kununurra in Western Australia's Kimberley region. The site benefits from proximity to existing sealed roads, facilitating the transport of concentrate approximately 150 kilometres to Wyndham Port. This logistical advantage could help streamline operations and reduce costs once mining commences.
Ownership and Investment Outlook
Boab Metals holds a 75% stake in Sorby Hills, with the remaining 25% owned by Henan Yuguang Gold & Lead Co. Ltd. Notably, Boab has an option to acquire Yuguang’s interest upon reaching a Final Investment Decision (FID), which the company aims to achieve in the fourth quarter of 2025. This upcoming decision will be pivotal in determining the project's development timeline and capital commitments.
Looking Ahead
Managing Director Simon Noon emphasized the importance of the EPBC approval, describing it as a key milestone that provides certainty and confidence to advance development plans. While the approval reduces regulatory risk, investors will be watching closely for further updates on financing, construction schedules, and market conditions that could influence the project's viability.
Bottom Line?
With environmental approval secured, Boab Metals is poised to make critical investment decisions that could reshape its growth trajectory.
Questions in the middle?
- What are the expected capital costs and financing plans for Sorby Hills development?
- How will Boab Metals’ option to acquire the remaining 25% stake impact project control and economics?
- What are the projected production volumes and timelines once operations commence?