Private contractor RE:GROUP has shaken hands on a $316 million deal with Boab Metals to provide mining services at the Sorby Hills project in the East Kimberley.
RE:GROUP has executed a binding head of agreement (HOA) with ASX-listed developer Boab Metals, with an expectation to ink the definitive mining services contract in the coming weeks.
Under the $316 million deal, RE:GROUP will commence site establishment works in mid-January, with full mining operations tipped to start by March. The scope of work will be undertaken over a term of up to five years.
RE:GROUP will mobilise a 300-tonne fleet to to deliver open pit mining services across the Sorby Hills silver-lead project in the East Kimberley.
Boab Metals put a total $262 million project capital price tag on developing Sorby Hills, which it says is fully funded through construction and commissioning with first production tipped for the September quarter of 2027.
The developer is targeting production of 2.1 million ounces of silver and 60,000 tonnes of lead per annum over a mine life of 10.5 years.
In May 2025, Boab acquired Sandfire Resources’ DeGrussa processing plant for $10 million to repurpose the mothballed facility for its silver-lead project.
Boab managing director Simon Noon said the deal marked another important milestone in the development of Sorby Hills.
“From the outset, RE:GROUP demonstrated the capability and operational depth we were looking for in a mining services partner for a project of this scale,” he said.
“We look forward to working closely with the RE:GROUP team as we progress Sorby Hills toward operations.”
The HOA builds on RE:GROUP’s presence in the wider Kimberley region, where its working at the Thunderbird mineral sands mine.
The private contractor secured that scope of work, worth $50 million per annum, with Kimberely Mineral Sands for the up to 5-year contract.
RE:GROUP managing director Michael Still said the HOA reflected their growing capability as they continue to expand.
"Sorby Hills is exactly the kind of project RE:GROUP wants to be part of,” he said.
“It is a significant development for the East Kimberley region and for Western Australian mining more broadly, and we are proud to have executed this heads of agreement with Boab Metals.
“This milestone is a reflection of the capability, fleet, and operational experience RE:GROUP has built – and it marks an exciting step as we extend our footprint into the East Kimberley."
