KBL Mining says its Sorby Hills project in Western Australia’s north-east Kimberley region will produce 4 million ounces of silver and 100,000 tonnes of lead in its first five years of operation. The company has completed a pre-feasibility study (PFS) for Stage 1 of the project, announcing robust economic figures including a net present value (NPV) of $88 million.
“Our confidence in the potential of the Sorby Hills project has been both validated and strengthened by the results of the pre-feasibility study,” says KBL chief executive officer Trangie Johnston. “The PFS modelling has demonstrated that the C, D and E deposits at Sorby Hills are quality open pit prospects with both strong technical fundamentals and robust economics over a 10-year mine life.”
Sorby Hills is 50km northeast of Kununurra and 160km east from Wyndham Port. The project’s tenements cover 12,612 hectares and a total of 13 individual mineralized deposits for an indicated and inferred resource of 16.7 million tonnes @ 4.5% lead and 52 grams/tonne silver.
“The tenements flank the eastern boundaries of the Ord River Stage 2 project and we are working with development authorities to ensure the Ord 2 and Sorby Hills projects can operate in harmony,” says Trangie Johnston.
The PFS has outlined an initial mining operation covering 27% of the resource for a mine life over 10 years. The study confirms with necessary approvals, there is substantial scope to expand the initial mine life and size of the project.
The first stage would cover mineralized deposits C, D and E for a combined resource of 4.43 million tonnes @ 4.29% lead and 44 grams/tonne silver. The most technically and financially viable mining operations will be an open pit with a 400,000 tonne per annum throughput.
The environmental assessment for the project is with the Western Australia Environmental Protection Authority and if final approval is received by June 2013, KBL is envisaging development will commence in 2014.