Boab Metals (ASX:BML) has entered into an engineering, procurement, and construction agreement with GR Engineering Services (ASX:GNG) for activities at the Sorby Hills Silver-Lead Project in the Kimberley region of Western Australia.
GR Engineering will conduct the disassembly, refurbishment, and relocation of the existing DeGrussa processing facility to Sorby Hills for reconstruction and commissioning to suit Boab’s requirements.
The contract is valued at $109 million for GR Engineering’s work, with early engineering works and ordering of long-lead items already beginning.
Construction teams will be mobilised to respective sites in the coming weeks.
Meanwhile, development activities at the project are ramping up. Boab says the schedule remains on track for the commencement of commercial concentrate production in H2 2027.
CEO Simon Noon says the contract is “another significant step forward for the Sorby Hills Project” as the company focuses on transitioning toward full project execution.
“GR Engineering has extensive experience delivering mineral processing projects across Australia and has already demonstrated a strong understanding of the Sorby Hills development strategy through its early involvement in the project,” Noon says.
“We are looking forward to continuing our close collaboration with the GR Engineering team as we progress toward construction and first production.”
The DeGrussa processing plant includes a primary crusher, ore storage bin, ball mill, SAG (semi-autogenous grinding) mill, flotation circuit, concentrate and tailings thickeners, and an extensive list of new spares, all fit for purpose for the proposed Sorby Hills processing plant flowsheet.
Boab says the DeGrussa plant is sized to achieve the targeted 100,000 tonnes per annum concentrate production rate expected for Sorby Hills.
As reported by Mining.com.au, Boab listed on the OTCQB Venture Market in the US late last year, using the ticker code ‘BMLQF’, as part of broadening its US strategy.
The listing provides US-based investors with improved accessibility and convenience to trade in Boab shares, while supporting the broader strategy to enhance market awareness and expand its international base.
Boab Metals is focused on developing the Sorby Hills Project in the East Kimberley region of Western Australia. Sorby Hill is a large, undeveloped near-surface lead-silver deposit.
Write to Maddison Elliott at Mining.com.au
Images: Boab Metals
