- Boab Metals (BML) acquires the Manbarrum zinc-lead-silver project in the Northern Territory from Todd River Resources
- BML will obtain 100 per cent of the project through $500,000 of fully paid ordinary shares at 42 cents each, plus a net smelter return royalty of 1.25 per cent
- Managing Director and CEO of Boab Simon Noon says the acquisition is an exciting strategic opportunity for the company to grow its resource base
- Boab will remain focused on bringing its Sorby Hills Project into production but will look in to how the Manbarrum Project can be incorporated into its broader regional production strategy
- Company shares were up 3.61 per cent, trading at 43 cents at 11:00 am AEST
Boab Metals (BML) has agreed to acquire the Manbarrum zinc-lead-silver project in the Northern Territory.
The Manbarrum Project is located 25 kilometres east of Boab’s flagship Sorby Hills Project and is currently owned by Todd River Resources.
Boab will obtain 100 per cent of the project through $500,000 of fully paid ordinary shares in the company at 42 cents per share plus a net smelter return royalty of 1.25 per cent payable on future revenue generated from the sale of minerals extracted from the Manbarrum Project.
Previous drilling at the project by Todd River struck zinc-dominated mineralisation in two locations, Sandy Creek and Djibitgun. Coincidentally, Sandy Creek was explored between 2006 and 2009 by Todd River Resources under the direction of Boab’s current exploration manager.
The company says mineralisation at Sandy Creek consists of a large, tabular horizon of mineralisation in sandy carbonate rocks, and mineralisation in steeply-dipping, high grade fissure zones. Boab says these high-grade zones present attractive exploration targets, which will be drilled to increase the resource size and grade.
Boab’s interest was further piqued by a conceptual open-pit mining study completed by an independent consultant in 2018. The study delivered positive results based on an on-site processing facility and identified the opportunity to improve project economics via toll treating at a future plant located at Sorby Hills.
Boab Managing Director and CEO, Simon Noon says the acquisition is an exciting strategic opportunity for the company to grow its resource base.
“The location of Manbarrum, with respect to Sorby Hills and its genetic relation to Sorby Hills, will allow for the systematic exploration and economic evaluation of a highly prospective and under-explored geological domain,” said Simon Noon.
For now, Boab says it will remain focused on bringing its Sorby Hills Project into production but will look in to how the Manbarrum Project can be incorporated into Boab’s broader regional production strategy.
Boab Metals was up 3.61 per cent, trading at 43 cents at 11:00 am AEST.