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
Base metals developer Galena Mining has raised A$17-million in a share placement, which was significantly oversubscribed.

The company has accepted binding commitments for the placement of 136-million shares, at a price of 12.5c each.

The shares will be placed under two tranches, with the first tranche of 71.4-million shares to be placed under the company’s existing placement capacity. The second tranche of 64.4-million shares will be subject to shareholder approval at a general meeting scheduled for mid-September.

Proceeds from the placement will be used to provide Abra Mining a temporary unsecured reserve facility (URF). The URF will be A$30-million.

The URF will be made available during the critical commissioning and initial ramp-up stages of the Abra base metals mine, up until the project completion tests are satisfied under the Taurus debt facilities, which is expected in the second half of 2023.

Its purpose will be to provide a working capital and cost buffer for Abra Mining to draw on in the event of unforeseen circumstances and costs such as weather-related road or port closures or other events. Any drawn amounts will become unsecured shareholder loans to Abra Mining while undrawn amounts will be returned to each of Galena and Toho in their respective 60:40 share.

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.