GR Engineering Services has been appointed preferred tenderer by Boab Metals Limited in relation to the engineering, procurement and construction (EPC) contract for the processing plant and non-process infrastructure for the Sorby Hills lead-silver project in Kununurra, Western Australia.
GR Engineering and Sorby Hills Management Pty Ltd (the manager of the Sorby Hills joint venture) will execute an agreement shortly to commence detailed design and selected ordering of long lead items, prior to the award of an EPC contract, it said. The EPC contract will be subject to the achievement of final investment decision.
Boab said the scope of work includes a process plant with a capacity of 2.25 Mt/y, representing a 50% increase over that considered in the Sorby Hills prefeasibility study. This 2020 study envisaged a 1.5 Mt/y throughput rate over an initial 10-year mine life, with the PFS combining ore drawn from three open pits with a processing plant employing conventional milling and flotation with a beneficiation plant between the coarse crush (dry end) and the grind and flotation circuit (wet end).
The PFS indicated steady state annual production of concentrate containing approximately 50,000 t/y of lead and 1.5 Moz/y of silver.
The tendered price for GR Engineering’s EPC agreement is commensurate with the proposed capacity expansion and will form the basis of capital cost estimates for the definitive feasibility study, Boab said.
GR Engineering’s Acting Managing Director, Tony Patrizi, said: “GR Engineering is pleased to have been selected by Boab as the preferred tenderer for the delivery of the project. GR Engineering has a strong track record of successful project delivery in the base metals space. Aligned with GR Engineering’s core values, it is exciting to work on this important regional project that has already implemented tangible green initiatives. We look forward to working with the Boab team.”
Boab owns 75% of the Sorby Hills joint venture project, with the remainder owned by Henan Yuguang Gold Lead Co. Ltd.