Boab clears a key Sorby Hills hurdle before 2027 mining

Mining services terms secured for Sorby Hills

Boab Metals Limited (ASX:BML) has secured a binding agreement covering one of the most important remaining operational work packages at its Sorby Hills silver-lead project in Western Australia’s Kimberley region.

The Heads of Agreement with RE:GROUP sets binding terms for the mining services scope, pricing, mine planning, production requirements and commencement dates. Boab said the definitive Mining Services Contract is substantially complete and is targeted for execution within two weeks, although the final contract has not yet been signed.

January mobilisation precedes March mining start

Site establishment works are scheduled to begin on 15 January 2027, with mining services due to commence no later than 1 March. Those dates support Boab’s stated development schedule, but remain planned milestones rather than completed activities.

Managing director and CEO Simon Noon said the agreement provides “further certainty” around a key operational work package and establishes a pathway towards mobilisation and early-2027 mining activities. The announcement does not disclose the value of the mining services arrangement or its detailed financial impact.

Construction continues across multiple work fronts

The mining agreement arrives as Boab advances construction and operational readiness following more than A$350 million in debt and equity funding and a Final Investment Decision in the fourth quarter of 2025. The company says all approvals needed to begin mining and construction have been received, while early works including all-weather site access and Stage 1 of the mine camp are complete.

GR Engineering Services is dismantling the DeGrussa Processing Plant for relocation and reassembly at Sorby Hills. Construction of the Evaporation Pond and Tailings Storage Facility is also progressing, alongside plant transport and civil works. First silver-lead concentrate remains scheduled for the second half of 2027.

Updated project economics still to come

Boab expects to release a Project Delivery Plan during the current quarter, incorporating contracted capital and operating costs and an enhanced Ore Reserve. The company says technical work has identified an opportunity to include additional mineralisation in the mine plan and potentially extend mine life, supported by a sustained increase in the silver price.

That forthcoming update will provide a more complete test of the project’s economics. Until then, the mining services HOA reduces one layer of execution uncertainty, but the final contract, mobilisation and delivery of the wider construction program remain the next tangible hurdles.