PERTH (miningweekly.com) – Underground contractor Byrnecut will mobilise to the Abra base metals project, in Western Australia, in the second half of September, after ASX-listed Galena Mining finalised the mining contract.
Galena told shareholders on Thursday that in addition to the underground mining contract, the company had also finalised the plant construction contract with ASX-listed GR Engineering Services.
“A major milestone has been achieved at Abra with the finalisation of the underground mining contract with Byrnecut and the implementation of the process plant engineering, procurement and construction (EPC) contract with GR Engineering Services. Both companies have been very strong supporters of the project over a long period of time and its very rewarding for everyone to see the work starting on the ground,” said Galena MD Tony James.
“The Byrnecut mining contract is for four years, with the remainder of this year and the majority of next year focussed on gaining access to the orebody, 230 m below surface. During this time the mine is effectively a ‘single heading’ decline and the manning requirements for that period are far lower than when the mine reaches commercial ore production in 2023.
“The actual mining work is expected to commence in the coming weeks. Equipment and labour have been sourced and are ready for mobilization in the second half of September.
The 1.2-million-tonne-a-year Abra project will require a capital spend of some A$170-million to develop, and will produce some 95 000 t/y of lead and 805 000 oz of silver over a 16-year mine life.