Sorby Hills Project Advances with 10% Road Completion, Bulk Earthworks Set
Boab Metals reports solid progress on its Sorby Hills silver-lead project, with early construction milestones met and key contracts nearing finalisation ahead of a 2027 production start.
- Early works on Sorby Hills project on track for April completion
- Main access road construction and bulk earthworks advancing
- Processing plant relocation contracts nearing execution
- Project fully funded, targeting first production in H2 2027
- Expected annual silver production of 2.2 million ounces
Construction Momentum Builds at Sorby Hills
Boab Metals Limited (ASX: BML) has provided a reassuring update on the development of its 100% owned Sorby Hills silver-lead project in Western Australia's East Kimberley region. Following a Final Investment Decision late last year, the company is steadily advancing construction activities with a clear eye on first production targeted for the second half of 2027.
Early works are progressing well, with key infrastructure pads for the mine-site camp and processing plant now completed. The main access road construction is underway, with about 10% finished, and road base material production is already a quarter complete. These foundational steps are critical in setting the stage for the bulk earthworks phase, which is scheduled to commence in April after mobilisation begins in March.
Strategic Infrastructure and Contracting
Boab Metals is leveraging existing infrastructure advantages, including sealed road access and proximity to Wyndham Port, which will facilitate efficient concentrate transport. The refurbishment of accommodation blocks and preparation of camp facilities are well underway, ensuring the workforce will be supported as construction ramps up.
Significantly, the company is nearing execution of key contracts related to the dismantling, relocation, and rebuild of the DeGrussa Processing Plant at Sorby Hills. This move is a cost-effective strategy that could accelerate project timelines and reduce capital expenditure. Concurrently, negotiations continue for fuel storage, supply, and power arrangements with Horizon Power, underscoring the project's comprehensive planning approach.
Positioning for Production and Market Impact
Once operational, Sorby Hills is expected to produce an average of 2.2 million ounces of silver annually, positioning Boab Metals among Australia's leading silver producers. This output, combined with lead production, aligns well with current market fundamentals, potentially offering robust returns for shareholders.
Managing Director Simon Noon expressed optimism about the project's trajectory, highlighting that construction activities are advancing ahead of schedule and building strong momentum toward full-scale development.
With environmental approvals secured and funding in place, Boab Metals is navigating the complex construction phase with a clear roadmap. The coming months will be pivotal as bulk earthworks commence and processing plant relocation contracts are finalised, setting the stage for the transition from construction to production.
Bottom Line?
Sorby Hills is shaping up as a major silver-lead producer, but execution risks remain as Boab Metals moves toward 2027 production.
Questions in the middle?
- Will Boab Metals maintain its construction schedule amid potential supply chain or labour challenges?
- How will the relocation of the DeGrussa Processing Plant impact overall project costs and timelines?
- What are the contingencies if power supply negotiations with Horizon Power face delays?
