Highlights
- Boab Metals (ASX: BML) has moved ahead to the next stage of project engineering and design at its Sorby Hills Project.
- GR Engineering Services has begun the Front End Engineering & Design (FEED) work for the process plant and related infrastructure at the project.
- Engineering Services Agreement (ESA) has been executed with GRES to conduct FEED for Sorby Hills with the work likely to conclude in the third quarter of the ongoing year 2023.
- Commissioning of the process plant and first concentrate production is expected in early 2025.
ASX-listed exploration and development player Boab Metals Limited (ASX: BML) today revealed that GR Engineering Services (GRES) has initiated Front End Engineering & Design (FEED) for the process plant and related infrastructure at its Sorby Hills Project. Based in the Kimberley Region of Western Australia, the Sorby Hills Lead-Silver-Zinc Project is the flagship project of the ASX-listed firm.
BML shares jump 2.5%
BML shares were spotted trading 2.5% higher on 13 March 2023 post the announcement. The share price was noted at AU$0.205 during morning hours with market capitalisation of AU$34.89 million.
Details of BM-GRES agreement
The Engineering Services Agreement executed with GRES includes provision for the tender as well as early procurement of long lead items. The company expects the associated work to conclude by the third quarter of the year 2023 (Q3 2023).
Upon completion of work under ESA, GRES and BML are planning to sign an EPC contract and start full detailed design; however, this remains subject to a Final Investment Decision (FID) on the Project.
First concentrate production likely in early 2025
As per a preliminary construction schedule drafted by GRES, the long lead procurement and offsite fabrication is expected to kick off upon EPC award and FID in Q3 2023. The process plant construction team will be mobilised to the project location in April 2024.
The earthworks associated with footprint preparations for the Sorby Hills process plant and associated infrastructure have got EPA approval. It is likely to complete ahead of the 2023 wet season.
The commissioning of the Process Plant and the first concentrate production is expected in early 2025.
This is what Simon Noon MD & CEO has to say about the latest development
Data source: Company update
Read Sorby Hills DFS in detail here
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