Boab Metals is moving its Sorby Hills lead-silver project in Western Australia from study to build, with the plant contract signed and first concentrate targeted for the second half of 2027. For ASX investors, it is one of the few silver-bearing developments in the country with funding already in place, which sets it apart from the long list of explorers still waiting on capital.
A funded build with a clear timetable
Boab signed an A$109 million engineering, procurement and construction contract with GR Engineering Services to dismantle, refurbish and relocate the former DeGrussa processing plant to the site. The company has lined up equity placements worth A$110 million raised in late 2025, plus a binding A$236 million debt facility, and it paid A$12.5 million to buy out the remaining 25 per cent of the project. Cash stood at A$97.8 million at the end of March.
What Sorby Hills could deliver
Stage 1 is planned to produce about 68,000 tonnes of payable lead and 2.2 million ounces of payable silver a year over an initial 8.5-year mine life. The ore reserve holds roughly 19.1 million ounces of payable silver, within a wider resource of about 53 million ounces of contained silver. The feasibility study pointed to an after-tax NPV of A$411 million and a very low cash cost once silver credits are counted. Because silver is a by-product here, the project leans on both lead and silver prices, a different risk profile to a straight silver miner such as the names covered in our Silver Mines Bowdens update.
Market backdrop for silver developers
Silver has slipped to around US$55 an ounce this week after a strong run, yet the supply picture remains tight. Industry data points to another structural shortfall, as our recent look at the 46.3 million ounce deficit explained, and The Silver Institute tracks the same trend in its annual survey. Construction risk is the key test from here. Relocating a second-hand plant, hitting budget and ramping up on schedule are all things that can go wrong, and the equity will trade on delivery rather than on the silver price alone. Readers can follow more producers and developers in our silver coverage.
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