en.Wedoany.com Reported - Boab Metals (ASX:BML) has signed an engineering, procurement and construction agreement with GR Engineering Services (ASX:GNG) for the Sorby Hills Silver-Lead Project in the Kimberley region of Western Australia.
Under the agreement, GR Engineering will be responsible for dismantling, refurbishing and relocating the existing DeGrussa processing plant to Sorby Hills to complete reconstruction and commissioning in accordance with Boab's requirements. The contract is valued at A$109 million, covering GR Engineering's related engineering services, with early works and long-lead item ordering already commenced. Construction teams will mobilise to their respective sites in the coming weeks.
Meanwhile, development activities for the project are accelerating. Boab stated that the project timeline remains on track, with commercial concentrate production expected to commence in the second half of 2027. CEO Simon Noon said the contract represents "another significant step forward for the Sorby Hills Project," with the company focused on transitioning to full project execution. Noon commented: "GR Engineering has extensive experience delivering mineral processing projects across Australia and, through their early involvement in the project, has demonstrated a deep understanding of the Sorby Hills development strategy. We look forward to continuing to work closely with the GR Engineering team as we progress towards construction and first production."
The DeGrussa processing plant equipment includes a primary crusher, ore storage bin, ball mill, SAG (Semi-Autogenous Grinding) mill, flotation circuit, concentrate and tailings thickeners, and a significant inventory of new spares, all of which are suitable for the proposed Sorby Hills processing plant flowsheet. Boab stated that the DeGrussa plant is sized to meet Sorby Hills' expected production target of 100,000 tonnes of concentrate per annum.
As reported by Mining.com.au, Boab listed on the OTCQB Venture Market in the United States late last year under the ticker code "BMLQF" as part of its strategy to expand into the US. This listing provides US investors with more accessible trading channels while supporting the company's broader strategy of increasing market visibility and expanding its international base.
Boab Metals is focused on developing the Sorby Hills Project in the East Kimberley region of Western Australia, a large, undeveloped, near-surface lead-silver deposit.
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