Ann: Sorby Hills PFS Delivers Outstanding Results, page-3

HIGHLIGHTS
• The Pre-Feasibility Study highlights the low-risk nature of the Sorby Hills project with a welldefined large scale Mineral Resource, simple crush-mill-float processing circuit, high metal
recoveries and key approvals received.
• The PFS base case (“Whole Ore”) Production Target mines 14.7Mt (circa 92% Measured and
Indicated, 8% Inferred) at an average grade of 3.6% Pb and 39 g/t Ag.
• The Project delivers Strong Pre-Tax Economics with a Pre-Tax NPV8 of A$303M generating an IRR
of 46% with a payback period of ~1.6years1
. Pre-Tax Life of Mine Net Operating Cash Flow of
A$747M or ~A$75M per annum
• Sorby Hills can be brought into production for an anticipated $183M of pre-production
expenditure comprising:
o Pre-Production Mining of A$24M;
o Process Plant (including EPC Fee) of A$105M;
o Infrastructure of A$21M and
o Contingency (A$20M) and Owners costs (A$13M).
• Low C1 cash costs position of US$0.40/lb payable Pb (including a Net Silver Credit of US$0.27lb/
payable Pb1
) delivering an LoM operating margin of 40%.
• The Project is anticipated to produce an average annual 81 thousand dry tonnes of 62% LeadSilver Concentrate, containing 50kt of recovered lead & 1.5Moz recovered silver per annum
across an initial 10 years mine life.
• Sorby Hills is supported by a significant large, near surface Pb-Ag-Zn deposit. Mineral Resource of
44.1Mt at 3.3% Pb, 38g/t Ag and 0.5% Zn and Proved and Probable Reserves of 13.6Mt at 3.6%
Pb, and 40g/t Ag.
• Significant expansion and exploration potential to Base Case assumptions through the potential
inclusion of a Dense Media Separator (“DMS”) within the process circuit and through exploration
of exciting near-mine targets.
• The detailed PFS allows the Company to immediately commence a Definitive Feasibility Study
(“DFS”). The Company will advance financing initiatives in parallel with the technical and
approvals workstream whilst progressing offtake discussions with joint venture partner Yuguang
(Australia) Pty Limited, a wholly owned subsidiary of China’s largest lead smelting and silver
producer, Henan Yuguang Gold and Lead Co. Ltd, and other potential offtake partners".
Managing Director, Simon Noon said: “The outcome of the Sorby Hills Pre-Feasibility Study is a
testament to the professionalism of our team and partners and reflects the significant opportunity for
the Project to be a low-cost operation with an attractive NPV and IRR. With advanced permitting, we
intend to move immediately to progress the Definitive Feasibility Study, offtake, financing, and
approvals workstreams.”