Name of the Project
Abra base metals project.

Location
In the Gascoyne region of Western Australia.

Project Owner/s
Abra Mining, 60%-owned by Galena Mining.

Project Description
The results of a feasibility study have confirmed low-risk and strong projected economic returns for the development of Abra as a combined underground mine and conventional processing facility (flotation concentrator) to produce a high-value and -grade lead/silver concentrate.

Total proven and probable reserves are estimated at 10.3-million tonnes grading 8.8% lead and 24 g/t silver.

Total mineral resources are estimated at 37.4-million tonnes grading 7.5% lead and 18 g/t silver.

Abra’s life-of-mine (LoM) has increased from 14 years in the September 2018 prefeasibility study (PFS) to 16 years in the feasibility study.

Mill throughput has remained the same, at 1.2-million tonnes a year; however, LoM lead production has increased from 1.1-million tonnes in the PFS to 1.24-million tonnes in the feasibility study, and silver production from 9.6-million ounces in the PFS to 10.6-million ounces in the feasibility study.

Lead production is estimated at 95 000 t/y and silver at 805 000 oz/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at a 5% discount rate, of A$553-million – 25% higher than the September 2018 PFS – and an internal rate of return of 39%, with a payback from the first full year of commercial production of two years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$169.6-million in the feasibility study, from A$154-million in the PFS.

Planned Start/End Date
First commercial ore production is expected at the start of 2023.

Latest Developments
Galena Mining has started mining the underground decline at its Abra base metals project.

“Taking the first cut in the portal to start the underground decline at Abra is very exciting. This keeps us on track for first commercial production of our high-value, high-grade lead/silver concentrate at the start of 2023,” Galena MD Tony James has said.

Mining contractor Byrnecut Australia started operations for the underground decline on October 5, following the deployment of people and equipment to the site, and the completion of final boxcut preparation works and services installation.

Primary decline works are expected to continue for about 14 months to gain access to the orebody.

Key Contracts, Suppliers and Consultants
GR Engineering Services (feasibility study).

Contact Details for Project Information
Galena Mining, tel +61 8 6166 3750 or email admin@galenamining.com.au.