Regroup Signs Preliminary Mining Agreement with Boab for Australian Silver-Lead Project

en.Wedoany.com Reported - On September 28, Boab Metals announced the signing of a binding mining services agreement framework with RE:GROUP Australia, securing a mining contractor for the Sorby Hills silver-lead project in the East Kimberley region of Western Australia. The agreement has defined the scope of mining services, pricing principles, mine plan, production requirements, and commencement timeline, with the two parties planning to complete the formal mining services contract within two weeks. Site preparation is scheduled to commence on January 15, 2027, with mining services to begin no later than March 1.

Sorby Hills has now entered the construction phase. Boab Metals holds a 100% interest in the project and plans to achieve first silver-lead concentrate production in the second half of 2027. The company made its final investment decision in December 2025, at which time it completed A$110 million in equity financing and secured A$236 million in project financing commitments, providing funding assurance for project construction.

Project construction is advancing in parallel on both the processing plant and mine infrastructure. In May of this year, Boab signed an EPC contract with GR Engineering Services to dismantle, refurbish, and relocate Sandfire Resources' former DeGrussa processing plant to Sorby Hills, where it will subsequently be reassembled and commissioned on site. A July project update showed that dismantling of the DeGrussa equipment had commenced, the site access road and plant pad had been completed, the Phase I mine camp was in use, and clearing of the ROM pad, tailings storage facility, and haul road corridor had also been completed.

Sorby Hills is located approximately 50 kilometers west of Kununurra and about 150 kilometers from the Port of Wyndham. Silver-lead concentrate produced by the project in the future will be transported from the mine site to the Port of Wyndham in sealed half-height containers, and then exported to overseas smelters in batches of approximately 5,000 to 10,000 wet metric tonnes. Boab previously disclosed that the project area already has sealed roads and port logistics conditions that can directly support concentrate export after the mine commences production.

In addition to construction progress, Boab has also been conducting Phase IX resource extension drilling this year. As of July, approximately 60% of the planned drilling had been completed; results further announced in September showed that multiple silver-lead mineralized intervals extend beyond the existing FEED open-pit design, and the company has expanded the drilling program by approximately 15% to assess the potential to increase ore reserves and extend mine life.

From the perspective of the project implementation chain, Sorby Hills has now completed the final investment decision, financing, processing plant EPC, and major early-stage site works. With the mining contractor now also secured, the project's 2027 mining commencement timeline has been further clarified. Boab's current target remains to achieve first silver-lead concentrate production in the second half of 2027.