Boab Metals Advances Sorby Hills with Processing Plant Move and Production Set for H2 2027
Boab Metals has begun dismantling the DeGrussa processing plant to relocate it to Sorby Hills, with first silver-lead concentrate production targeted for the second half of 2027. Key infrastructure is progressing ahead of schedule, and an updated Project Delivery Plan will reflect higher silver prices and extended mine life.
- DeGrussa processing plant dismantling underway
- Site access and mine camp operational
- Evaporation pond and tailings facility construction progressing
- First concentrate production targeted for H2 2027
- Upcoming Project Delivery Plan to update Ore Reserve and economics
Processing Plant Relocation Marks Major Milestone
Boab Metals (ASX:BML) has kicked off dismantling the DeGrussa processing plant, acquired from Sandfire Resources, as part of its plan to relocate and reassemble the facility at its Sorby Hills Silver-Lead Project in Western Australia’s East Kimberley region. This move is a pivotal step toward achieving first production in the second half of 2027, with the company’s contracted engineering partner GR Engineering Services leading the EPC scope.
Infrastructure Progress Accelerates Ahead of Schedule
Site access roads are complete and Stage 1 of the mine site camp is operational, enabling the project to receive the relocated plant. Clearing for the Run-of-Mine pad, tailings storage facility, and haul roads has been finished ahead of schedule. Meanwhile, construction of the evaporation pond is on track, supporting the project's water management needs. These early works demonstrate Boab’s proactive approach to de-risking the construction timeline and maintaining efficiency.
Updated Project Delivery Plan to Reflect Market Conditions
Boab plans to release a comprehensive Project Delivery Plan this quarter that will incorporate contracted capital and operating costs alongside an updated Ore Reserve. The revision is driven by extensive technical work completed during execution, including mine optimisation and operational planning. Notably, the company is incorporating additional mineralisation into the mine plan and extending mine life in response to sustained higher silver prices, signalling potentially improved project economics.
Fully Funded Development on Track for Production
Following a Final Investment Decision in late 2025 and a capital raise exceeding A$350 million, Boab is advancing Sorby Hills with all necessary approvals secured. The project benefits from excellent logistics, located 50 kilometres from Kununurra with sealed road access to Wyndham Port for concentrate transport. The company remains on course to produce its first silver-lead concentrate in H2 2027, positioning itself to capitalise on strong market fundamentals for both metals.
Bottom Line?
Boab’s steady progress dismantling and relocating the DeGrussa plant, combined with infrastructure readiness and an Ore Reserve update, sets a clear path toward production in H2 2027, but the upcoming Project Delivery Plan will be critical to confirming the economics underpinning this optimism.
Questions in the middle?
- How materially will the updated Ore Reserve and mine life extension impact project valuation?
- What are the key risks to maintaining the H2 2027 production timeline amid ongoing construction?
- How will sustained higher silver prices influence Boab’s operational and capital expenditure plans?
