Boab Metals Ltd · ASX:BML
Boab Metals — Investor Presentation (February 2021)
32 slides from Boab Metals's investor presentation, Feb 17, 2021
Slide 1: Developing an Open Pit Lead-Silver Project in Western Australia
For personal use only Developing an Open Pit Lead-Silver Project in Western Australia Investor Presentation 16 February 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Competent Person Statements For personal use only Certain statements in the presentation are or may be “forward-looking statements” and represent the The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Compan
Slide 3: Investment rationale
Investment rationale For personal use only Australia’s largest undeveloped, near- Impressive Project Economics Rare ASX exposure to Silver markets surface Lead-Silver deposit Pre-Tax NPV8 A$303m, Pre-Tax IRR 46%, ~1.6- Sorby Hills 54 Million Ounce Silver Resource2 is Granted mining leases, EPA appro
Slide 4: Board and management
Board and management For personal use only Experienced Board and Management with a proven track record in exploration and development. Gary Comb Simon Noon Richard Monti Andrew Parker Chairman Managing Director and CEO Non-Exec. Director Non-Exec. Director Engineer with over 30 years’ Experienced ex
Slide 5: Corporate summary
Corporate summary For personal use only Capital structure (as at 12 February 2021) PFS Confirmed a Strong Low-Risk Base Metal Project with Very Significant Silver Exposure Share Price A$0.45 / share Shares on Issue 152 million shares 475,223 t Payable Lead Enterprise Value A$53.5 million A$1.4 Billi
Slide 6: Undeveloped ASX Listed Silver Resources located in Australia
Undeveloped ASX Listed Silver Resources located in Australia Aside from its primary base metal content the Sorby Hills’ 54 Million Ounce Silver Resource alone is For personal use only among the largest undeveloped Silver Resources located in Australia 200 Contained Silver Ounces 150 Sorby Hills (Mil
Slide 7: PFS highlights
PFS highlights For personal use only The Sorby Hills PFS released in August 2020 highlights a technically robust project with impressive economics The PFS highlights the low-risk nature of the Sorby Hills Project with a well-defined large-scale Mineral Resource, conventional crush-mill-float process
Slide 8: Project highlights
Project highlights For personal use only Sorby Hills Lead-Silver-Zinc Project Australia’s largest undeveloped, near-surface Lead-Silver-Zinc deposit. • 75%/25% Joint Venture Partnership with China’s largest Lead smelter and Silver producer, Henan Yuguang Gold and Lead Co. Ltd. • Granted pre-native t
Slide 9: Mineral resource estimate
Mineral resource estimate For personal use only Large shallow Resource comprising gently dipping Lead-Silver deposits with well defined geology Image: Long section looking west. Red blocks represent mineralisation from the MRE block model. Deposit Mt Pb (%) Ag (g/t) Pb Eq. (%) Zn (%) A 0.6 6.1 32 6.
Slide 10: Ore reserve and mine plan
Ore reserve and mine plan For personal use only A low-risk Mine Plan underpinned by 92% Ore Reserves Classification Mt Pb (%) Pb (kt) Ag (g/t) Ag (Moz) Pb Eq. (%) Pb Eq. (kt) Proved 6.8 4.1 275 53.0 11.5 5.4 368 The PFS Base Case incorporates the mining of 14.8Mt of ore over an initial 10-year mine
Slide 11: Metallurgy & Processing
Metallurgy & Processing For personal use only Conventional processing route producing a high-quality concentrate Production Summary Plant Process Crush, Mill and Float Plant Throughput 1.5Mt p.a. Average Feed Grade 3.6% Lead, 39.5 g/t Silver Average Lead Recovery 93.3% Average Silver Recovery 80.3%
Slide 12: Value adding opportunities
Value adding opportunities For personal use only The Sorby Hills project has significant upside potential that has not been included in the Pre-Feasibility Study. These advanced opportunities have the potential to scale-up, expand and add value the Project Phase IV and Phase V Drilling Programs: • R
Slide 13: Phase IV drilling program
Phase IV drilling program For personal use only Successful advancement of the Sorby Hills towards Definitive Feasibility Study status • 4,803m drill program designed primarily to collect Metallurgical and Geotechnical samples to underpin Definitive Feasibility Study standard testwork. • Included 1,4
Slide 14: Phase V drilling program
Phase V drilling program For personal use only High impact drilling program to maximise the value extracted from the Sorby Hills deposit for the DFS • The Sorby Hills Mineral Resource is a function of Boab’s demonstrated ability to effectively and efficiently increase Resource 2,000 size and confide
Slide 15: Near mine drilling targets
Near mine drilling targets For personal use only High quality near mine drilling targets • Further drilling is expected to confirm continuity between Norton and Omega deposits. • Four wildcat drillholes in 2018 intersected continuous shallow mineralisation. Follow up diamond drilling planned for Q2
Slide 16: Regional exploration potential
Regional exploration potential For personal use only Eight Mile Creek - Exploration Licence E80/5317 • 100% owned by Boab Metals. • High resolution gravity survey completed over the northern half of • Covers 217 km2 of relatively E80/5317 and data is currently underexplored tenure immediately being
Slide 17: Potential increase in mine size
Potential increase in mine size For personal use only Results of the Phase V drill program together with the ongoing DFS Metallurgical program will act as inputs to an investigation into the potential to expand the currently proposed processing capacity at Sorby Hills Key benefits may include: • low
Slide 18: Dense Media Separation (DMS) circuit addition
Dense Media Separation (DMS) circuit addition For personal use only The incorporation of a DMS circuit would allow Optional DMS Circuit for the economic treatment of lower grade ore that would otherwise be classified as waste The PFS considered an alternative processing option whereby low-grade ore
Slide 19: Sorby Hills JV partnership
Sorby Hills JV partnership For personal use only Boab (75% interest) Henan Yuguang Gold and Lead Co., Ltd (25% contributing interest) • Very positive meetings have been held with Joint Venture partner Henan Yuguang Gold and Lead Co., Ltd (“Yuguang”), the largest Lead smelting company and Silver prod
Slide 20: The Silver & Lead Markets
For personal use only The Silver & Lead Markets Boab Metals Limited ASX:BML 20
Slide 21: Lead and Silver in the clean energy economy
Lead and Silver in the clean energy economy For personal use only Lead Silver Lead batteries are a key in the transition Silver’s industrial applications, particularly to a low carbon economy, applications in emerging green industries, provides a include: supply-demand overlay to the traditional sto
Slide 22: Exposure to the silver market
Exposure to the silver market For personal use only The recent surge in the price of Silver has been reflected in Boab’s share price demonstrating the significance of the precious metal in the value of Sorby Hills The Sorby Hills Mineral Resource Estimate of 44.1Mt at 3.3% Pb, 38 g/t Ag and 0.5% Zn
Slide 23: Outlook
For personal use only Outlook Boab Metals Limited ASX:BML 23
Slide 24: Project financing
Project financing For personal use only Boab has engaged with the Northern Australia Infrastructure Facility (“NAIF”) regarding financing for the Project • NAIF is an Australian Federal Government organisation with an aggregate of A$5 billion of debt finance which may be lent on concessional terms t
Slide 25: Development timeline providing significant newsflow
Development timeline providing significant newsflow For personal use only On track to become a significant West Australian Lead-Silver producer in 2023 Milestone Status CY2021 CY2022 Q1 Q2 Q3 Q4 Q1 Q2 Pre Feasibility Study ✓ Maiden Ore Reserve Estimate ✓ Secure Funds to reach Decision to Mine ✓ DFS
Slide 26: Thank you
For personal use only Thank you Simon Noon – Managing Director info@BoabMetals.com www.BoabMetals.com
Slide 27: Appendix
For personal use only Appendix 27
Slide 28: Peer Comparison Supporting Information
Peer Comparison Supporting Information For personal use only Measured Indicated Inferred Total Primary Ticker Project Stage Source Metal Mt g/t Moz Mt g/t Oz Mt Grade g/t Mt Grade Moz SVL-ASX Bowdens Feasibility Complete Silver 76 45 111 29 31 29 23 31 23 128 40 163 2020 AGM Presentation 27 Nov 2020
Slide 29: PFS capital and operating costs
PFS capital and operating costs For personal use only Capital Cost Estimate Operating Cost Estimate1 Capital Item A$M Cost Centre A$M A$/t ore A$/lb2 US$/lb2 Pre Production Mining 24.3 Mining 347 23.48 0.33 0.23 Process Plant incl. EPC fee 105.4 Processing 292 19.80 0.28 0.20 Infrastructure 20.5 G&A
Slide 30: PFS life of mine metrics
PFS life of mine metrics For personal use only Item Unit Base Case Item Unit Base Case Economic Assumptions Cash Flow Lead Price US$/t 2,095 Lead Revenue A$M 1,422.3 Silver Price US$/oz 21.10 Silver Revenue A$M 431.1 Exchange Rate A$:US$ 0.70 Gross Revenue A$M 1,853.3 Physicals Royalties A$M (69.5)
Slide 31: Mineral resource estimate
Mineral resource estimate For personal use only Mineral Resource Estimate. Reported at cut-off of 1% Pb (Pb domains only). • Updated Mineral Resource Measured Indicated Inferred Total Estimate undertaken by Pb Ag Zn Pb Ag Zn Pb Ag Zn Pb Ag Zn Deposit Mt Mt Mt Mt (%) (g/t) (%) (%) (g/t) (%) (%) (g/t)
Slide 32: Equivalent calculation
Equivalent calculation For personal use only The contained metal equivalence It is Boab’s opinion that all elements Metal equivalents are highly dependent on the included in the metal equivalent calculation metal prices used to derive the formula. Boab formula is based on the Sorby Hills notes that