PERTH (miningweekly.com) – ASX-listed Galena Mining has taken a positive investment decision on the A$170-million Abra base metals joint venture (JV), in Western Australia.
The company on Tuesday told shareholders that first production from Abra is scheduled for the first quarter of 2023.
The final investment decision was made after the satisfaction of key conditions precedent to allow for a drawdown of more than $30-million under a $110-million debt facility from Taurus Funds Management.
Galena’s JV partner, Toho Zinc Co, will also be investing A$40-million.
“I’m ecstatic that everything is now in place and we’ve been able to make the final investment decision for Abra. Galena is now poised to join the ranks of high margin Australian producers, benefitting from buoyant base metal markets,” said MD Alex Molyneux.
Some A$27.4-million has already been spent on the JV project, which is some 17% complete at the end of May. Under the current project schedule, procurement of certain long-lead items would take place immediately. The underground mining contractor is expected to initiate portal and decline development in the third quarter of this year, and first production of high-grade lead/silver concentrate is scheduled for the first quarter of 2023.
The 1.2-million-tonne-a-year Abra project will produce some 95 000 t/y of lead and 805 000 oz of silver over a 16-year mine life.