Proactiveinvestors Australia Galena Mining Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Galena Mining Ltd RSS feed en Tue, 16 Jul 2019 08:20:56 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Galena Mining gets ready to begin major construction works at Abra Base Metals Project ]]> https://www.proactiveinvestors.com.au/companies/news/223241/galena-mining-gets-ready-to-begin-major-construction-works-at-abra-base-metals-project-223241.html Galena Mining Ltd (ASX:G1A) has received the final approvals for the major permits required to allow construction, mining and production at its Abra Base Metals Project in WA.

In addition, the company has concluded the native title compensation arrangements for the project.

Galena managing director Alex Molyneux said: “Its very pleasing to have received our major permits within the previously anticipated timeframe and to be able to commence major construction works at Abra at any time.”

Conclusion of major permits for Abra

Galena’s joint-venture subsidiary Abra Mining Pty Limited (AMPL) recently received the following major approvals:

• The Western Australian Department of Mines, Industry Regulation and Safety (DMIRS) for the Mining Proposal, Mine Closure Plan and Native Vegetation Clearing Permit;

• The Western Australian Department of Water and Environment Regulation (DWER) Works Approval for the processing plant and tailings storage facility; and

• Approval by the State Mining Engineer for the Abra Project Management Plan.

READ: Galena Mining on track to begin construction in 2019 at Abra Base Metals Project in WA

Together with the previously received DWER Works Approval for the mine, these approvals constitute all of the major approvals required for construction, mining and production at Abra.

Conclusion of native title compensation arrangements

AMPL recently concluded the process to determine native title compensation arrangements for the project under the terms of the pre-existing Heritage Agreement dated September 21 2005.

The company had already modelled a financial compensation arrangement in its pre-feasibility study model for Abra released in September 2018.

The financial elements of the concluded arrangements are in-line with Galena’s expectations.

In addition, arrangements have been agreed with respect to environmental consultation; liaison; employment; training; contracting; and cross-cultural induction.

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Wed, 03 Jul 2019 11:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223241/galena-mining-gets-ready-to-begin-major-construction-works-at-abra-base-metals-project-223241.html
<![CDATA[News - Galena Mining has new substantial shareholder with Tim Roberts holding 6.85% ]]> https://www.proactiveinvestors.com.au/companies/news/222891/galena-mining-has-new-substantial-shareholder-with-tim-roberts-holding-685-222891.html Galena Mining Ltd (ASX:G1A) has a new substantial shareholder in New Zealand-based investor Tim Roberts who has a 6.85% stake in the base metals developer.

Roberts holds 25 million shares which were acquired on June 24 from Singapore-based Kingfisher Capital Pte Ltd in a transaction valued at $9.375 million.

These shares were acquired by Kingfisher earlier this year.

READ: Galena Mining on track to begin construction in 2019 at Abra Base Metals Project in WA

Galena is developing the Abra Base Metals Project in Western Australia, which hosts one of the highest-grade lead concentrates globally with a JORC-compliant probable ore reserve estimate of 10.3 million tonnes at 8.8% lead and 24 g/t silver.

This is within an indicated and inferred mineral resource estimate at a 5.0% lead cut-off of 37.4 million tonnes at 7.5% lead and 18 g/t silver.

READ: Galena Mining makes key appointments including new CFO, drilling continues

Galena secured the equity needed to develop the project in January 2019 through a $90 million agreement with Japan’s Toho Zinc Co Ltd (TYO:5707).

A term sheet executed with Toho resulted in it gaining 40% ownership of Galena’s wholly owned subsidiary, Abra Mining Pty Ltd (AMPL), which owns the project.

The agreement involves the international zinc and lead smelting company investing $90 million in three trenches.

A definitive feasibility study for the project is also set for release in mid-2019 and construction is planned to begin as soon as possible.

READ: Galena Mining continues to hit high-grade lead and silver at Abra Base Metals Project

Recent drilling results have also confirmed and extended high-grade mineralisation in the northwestern Apron Zone sector.

The aim of this infill drilling was to improve the geological confidence with the view to upgrading to an indicated resource status following a revised resource estimation process.

These results indicate the area has potential to add significant value to the early years of mine life due to its location in the upper sections of the ore body, outside the indicated resource.

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Thu, 27 Jun 2019 10:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222891/galena-mining-has-new-substantial-shareholder-with-tim-roberts-holding-685-222891.html
<![CDATA[News - Galena Mining makes key appointments including new CFO, drilling continues ]]> https://www.proactiveinvestors.com.au/companies/news/222105/galena-mining-makes-key-appointments-including-new-cfo-drilling-continues-222105.html Galena Mining Ltd (ASX:G1A) has appointed Craig Barnes, a chartered accountant with over 20 years experience in senior finance, as its chief financial officer (CFO).

Previously, Barnes was CFO of Paladin Energy Ltd (ASX:PDN) and DRDGOLD Limited (JSE:DRD).

Notably, he has experience in bank debt project financing, M&A, and management of producing mining assets held and developed through joint-ventures.

Galena has also appointed John Blower as Project Manager, previous at the Roy Hill Mine and Jude Turton as Commercial Manager, previously with Covalent Lithium and Independence Group Ltd (ASX:IGO).

READ: Galena Mining continues to hit high-grade lead and silver at Abra Base Metals Project

Galena’s managing director Alex Molyneux said: “Craig will be a great asset to Galena during the phase of finalising project financing debt facilities and then into the construction and production phases for our Abra Base Metals Project, where experienced financial stewardship will be an important element to maximising shareholder returns.”

Project development drilling at Abra continues following recent results confirming and extending high-grade mineralisation in the Apron Zone.

The drilling results to date have highlighted the potential to improve the geological confidence of the Abra JORC resource.

Proactive caught up with Galena in early May for an update.

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Fri, 14 Jun 2019 09:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222105/galena-mining-makes-key-appointments-including-new-cfo-drilling-continues-222105.html
<![CDATA[News - Galena Mining continues to hit high-grade lead and silver at Abra Base Metals Project ]]> https://www.proactiveinvestors.com.au/companies/news/221511/galena-mining-continues-to-hit-high-grade-lead-and-silver-at-abra-base-metals-project-221511.html Galena Mining Ltd (ASX:G1A) has received new drilling results confirming and extending the high-grade mineralisation in the northwestern Apron Zone sector of the Abra Base Metals Project in WA.

Drill-holes AB103, AB104 and AB107 all intersected high-grade lead mineralisation:

• AB103 intersected 19.3 metres at 13.4% lead and 50g/t silver;
• AB104 intercepted 11 metres at 8.8% lead and 21g/t silver;
• AB107 intersected 23.1 metres at 16.7% lead and 82 g/t silver (including 3.5 metres at 51.4% lead and 95 g/t silver) and 3.4 metres at 13.4% lead and 17 g/t silver.

Assays received for the six holes graphically represented

The aim of this infill drilling was to improve the geological confidence with the view to upgrading to an indicated resource status following a revised resource estimation process.

Importantly, the successful drilling results indicate the area has potential to add significant value to the early years of Abra’s mine life due to its location in the upper sections of the orebody outside the currently estimated indicated resource.

READ: Galena Mining and Toho Zinc executes definitive documentation for $90 million investment

Galena managing director Alex Molyneux said: “These results confirm high-grade mineralisation in the shallower northwestern section of the Apron Zone.

“This has the potential to add additional value into the early years of the project after completion of the Mineral Resource and Reserve estimation process.

“We are also planning follow up drilling to test further to the west as mineralisation remains open in that direction”

 

Galena has now completed 17 drill-holes for 7,164 cumulative drill metres as part of its 16,000-metre 2019 project development drilling program.

Assays for holes AB109 to AB119 remain pending.

The 2019 Abra Project Development Drilling Program has three primary objectives:

• To infill inferred resources on the northwestern area of the December 2018 resource to upgrade that relatively shallower mineralisation to the indicated category;

• Further infill drilling of the first years’ production to a closer drill spacing to enhance mine design and scheduling associated with short to medium term production planning; and

• To further infill drill current Indicated resources within the first three years planned production areas for medium to long term optimisation and planning.

Drilling will continue to de-risk the project before the box cut and underground decline development begins.

READ: Galena Mining on track to begin construction in 2019 at Abra Base Metals Project in WA

Galena’s PFS study had confirmed that the development of Abra is an economically and technically robust opportunity, with the potential to become a significant, long-life, high margin West Australian lead-silver producer.

Following on from the success of the PFS scoping study, Galena remains cto complete the definitive feasibility study for Abra in mid-2019.

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Wed, 05 Jun 2019 11:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221511/galena-mining-continues-to-hit-high-grade-lead-and-silver-at-abra-base-metals-project-221511.html
<![CDATA[News - Galena Mining on track to begin construction in 2019 at Abra Base Metals Project in WA ]]> https://www.proactiveinvestors.com.au/companies/news/220892/galena-mining-on-track-to-begin-construction-in-2019-at-abra-base-metals-project-in-wa-220892.html Galena Mining Ltd (ASX:G1A) has confirmed it is on track to begin construction in 2019 at its high-grade Abra Base Metals Project in Western Australia.

This includes initial development work such as camp fabrication, site infrastructure and clearing, bulk earthworks, and procurement of selected plant and long-lead time items.

Final permits are set to be complete in the second half of calendar year 2019.

 

 

Earlier this month managing director Alexander Molyneux told Proactive Investors the definitive feasibility study for the lead and silver project was also set for release in mid-2019.

He said: “Because we raised the equity early, we can move forward with a number of elements of the project development even before the DFS is out.”

This includes work on off-taking, engineering design and long-lead items had already begun. 

 

  READ: Galena Mining and Toho Zinc executes definitive documentation for $90 million investment

The project hosts one of the highest-grade lead concentrates globally with a JORC-compliant probable ore reserve estimate of 10.3 million tonnes at 8.8% lead and 24 g/t silver.

This is within an indicated and inferred mineral resource estimate at a 5.0% lead cut-off of 37.4 million tonnes at 7.5% lead and 18 g/t silver.

The company secured the equity needed to develop the Abra project in January 2019 through a $90 million agreement with Japan’s Toho Zinc Co Ltd (TYO:5707).

READ: Galena Mining secures $90 million equity from Toho Zinc to develop Abra Base Metals Project

The term sheet executed with Toho resulted in it gaining 40% ownership of Galena’s wholly owned subsidiary, Abra Mining Pty Ltd (AMPL), which owns the project.

The agreement involves the international zinc and lead smelting company investing $90 million in three trenches.

Molyneux added: “This is a great transaction that provides the equity required to develop Abra, recognising the strategic value of the project.”

Nine indications of interest for remaining offtake has been received from potential customers in Europe, East Asia and China.

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Fri, 24 May 2019 10:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220892/galena-mining-on-track-to-begin-construction-in-2019-at-abra-base-metals-project-in-wa-220892.html
<![CDATA[Media files - Galena Mining moves Abra Base Metals Project into development phase after $100 million financing ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13190/galena-mining-moves-abra-base-metals-project-into-development-phase-after-100-million-financing-13190.html Thu, 02 May 2019 03:57:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13190/galena-mining-moves-abra-base-metals-project-into-development-phase-after-100-million-financing-13190.html <![CDATA[News - Galena Mining receives final $5 million payment from $10 million Kingfisher investment ]]> https://www.proactiveinvestors.com.au/companies/news/218745/galena-mining-receives-final-5-million-payment-from-10-million-kingfisher-investment-218745.html Galena Mining Ltd (ASX:G1A) has received the second and final payment of $5 million from Kingfisher Capital Pte Ltd as part of a $10 million strategic investment transaction.

Accordingly, the company has issued Kingfisher 12.5 million shares at 40 cents per share together with 2.5 million options.

READ: Galena Mining secures $10 million investment from Kingfisher Capital

Half of these options have a strike price of 50 cents per share and the other half have a strike price of 60 cents, with an expiry of four years from the issuance date.

Kingfisher now holds a 6.91% stake in Galena, becoming a new substantial shareholder.

READ: Galena Mining and Toho Zinc executes definitive documentation for $90 million investment

Finalising the Kingfisher investment follows completion of the transaction with Toho Zinc Co Ltd to invest $90 million for a 40% joint venture investment in Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project in WA.

Closing formalities for the Toho transaction have now been completed and AMPL has issued new shares to CBH Western Australia Pty Ltd (CBHWA), a wholly-owned subsidiary of Toho.

AMPL is at present owned 8.89% by CBHWA and 91.11% by Galena.

The company has also received a $5 million inter-company loan repayment from AMPL.

Project development drilling

Galena is undertaking initial project development drilling at Abra, which the company considers a major advancement of the project.

The drilling will complete decline positioning, water bores and additional infill holes associated with early production horizons.

READ: Galena Mining optimises PFS ahead of publishing DFS in mid-2019

Under the program, Galena anticipates drilling more than 15,000 metres of diamond core drill holes adding about 25% new data to the project’s total drilling database.

The program will aim to increase confidence within areas of the Abra resource already categorised as indicated and inferred.

In addition to the main purpose, a sub-set of drill holes have been planned for the purposes of overall resource development and near-project exploration.

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Wed, 17 Apr 2019 16:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218745/galena-mining-receives-final-5-million-payment-from-10-million-kingfisher-investment-218745.html
<![CDATA[News - Galena Mining and Toho Zinc executes definitive documentation for $90 million investment ]]> https://www.proactiveinvestors.com.au/companies/news/218459/galena-mining-and-toho-zinc-executes-definitive-documentation-for-90-million-investment-218459.html Galena Mining Ltd (ASX:G1A) and Japan-based Toho Zinc Co Ltd (TYO:5707) have executed the definitive documentation for a $90 million investment by Toho for a 40% interest in Galena’s Abra Base Metals Project.

Toho, via its wholly-owned subsidiary CBH Western Australia Pty Ltd (CBHWA) is investing in Galena’s wholly-owned subsidiary Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project.

The first tranche payment of $20 million has been received by AMPL.

READ: Galena Mining secures $90 million equity from Toho Zinc to develop Abra Base Metals Project

Galena managing director Alex Molyneux said: “I’m very pleased to welcome Toho as our partner for the development of the Abra Base Metals Project.

“Toho is a recognised player in the global lead and zinc industry and an experienced miner, so their investment represents one of the most positive endorsements possible.”

Under the terms of the transaction, once certain closing formalities are completed, AMPL will issue new shares to CBHWA such that AMPL will be owned 8.89% by CBHWA and 91.11% by Galena.

At that time, Galena will also receive a $5 million intercompany loan repayment from AMPL.

Subsequently, CBHWA will pay a second $10 million payment tranche to AMPL once Galena issues the definitive feasibility study (DFS) for the Abra Base Metals Project for an additional 4.44% of AMPL.

READ: Galena Mining Toho transaction gets due diligence tick

A final $60 million payment will be paid once project financing debt for the project has been confirmed on terms acceptable to both Galena and Toho and all conditions for the drawdown of the full amount of the project financing debt have been satisfied.

CBHWA will receive a further 26.67% of AMPL on payment of that final tranche, taking its total ownership of AMPL to 40.00%.

Advancing towards construction phase

Abra is now being advanced towards the construction phase. The initial project development drilling has commenced (including drilling to complete decline positioning, water bores and additional infill holes associated with early production horizons).

In addition, Galena and Toho have agreed to utilise the first and second payment tranches from the transaction to commence additional early project works, including: establishment of initial site camp; certain site infrastructure works; mine boxcut development; initial underground decline development; and procurement of certain long lead-time items.

DFS in mid-2019

In light of the fast-track move towards construction and that the DFS for Abra remains expected in mid-2019, Galena no longer proposes to publish an optimised Abra prefeasibility study as proposed prior to entering into the Toho transaction.

The company’s immediate focus will be on: commencing the early project works; finalising outstanding minor permitting approvals; completion of the DFS; and advancing discussions with project financing debt providers (including engaging with Japanese lenders introduced by Toho).

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Fri, 12 Apr 2019 12:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218459/galena-mining-and-toho-zinc-executes-definitive-documentation-for-90-million-investment-218459.html
<![CDATA[News - Galena Mining in trading halt ahead of Toho investment transaction completion ]]> https://www.proactiveinvestors.com.au/companies/news/218284/galena-mining-in-trading-halt-ahead-of-toho-investment-transaction-completion-218284.html Galena Mining Ltd (ASX:G1A) has been granted a trading halt by the ASX pending the announcement regarding the execution of transaction documentation and the upcoming completion of the Toho Zinc Co Ltd (TYO:5707) investment transaction.

The trading halt will remain in place until the start of normal trading on Friday, April 12 2019, or when an announcement is released to the market, whichever occurs earliest.

READ: Galena Mining Toho transaction gets due diligence tick

Galena’s proposed transaction with Japan’s Toho Zinc recently completed the confirmatory due diligence that was a condition to the transaction.

Toho plans to invest $90 million for a 40% ownership of Galena’s wholly-owned subsidiary Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project in Western Australia.

Galena is targeting the start of construction at Abra in 2019, with initial production in 2021 and the first full-year of steady-state commercial production in 2022.

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Wed, 10 Apr 2019 13:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218284/galena-mining-in-trading-halt-ahead-of-toho-investment-transaction-completion-218284.html
<![CDATA[News - Galena Mining attracts new substantial shareholder in UBS Group AG ]]> https://www.proactiveinvestors.com.au/companies/news/218091/galena-mining-attracts-new-substantial-shareholder-in-ubs-group-ag-218091.html Galena Mining Ltd (ASX:G1A) has a new substantial shareholder in UBS Group AG and its related bodies corporate as it moves along the development path for the Abra Base Metals Project in WA.

UBS Securities Australia has made a series of transactions between December 19, 2018, and April 3, 2019, and now holds more than 17.99 million shares representing a 5.15% interest.

READ: Galena Mining Toho transaction gets due diligence tick

Last week, Galena advised that the confirmatory due diligence for its proposed transaction with Japan’s Toho Zinc Co Ltd (TYO:5707) had been completed.

Due diligence is a condition to the transaction which if completed will result in Toho investing $90 million for a 40% ownership of Galena’s wholly-owned subsidiary Abra Mining Pty Ltd (AMPL), which owns the project.

Transaction advances

With foreign investment approval also recently received, Galena said the only material outstanding conditions to the transaction were executing the required definitive documents and related internal approvals.

Galena agreed to extend the exclusivity period for the transaction by 12 days until April 12, 2019.

The company continues to anticipate the definitive documentation to be executed and the first payment to be made this month.

READ: Galena Mining secures $10 million investment from Kingfisher Capital

In March, the company executed a subscription agreement with Kingfisher Capital to invest $10 million into Galena in two tranches of $5 million each at 40 cents per share.

Production development drilling

Galena plans to release a definitive feasibility study (DFS) for the project in mid-2019 and is undertaking initial production development drilling.

The drilling will complete decline positioning, water bores and additional infill holes associated with early production horizons.

Under the program, Galena anticipates drilling more than 15,000 metres of diamond core drill holes adding about 25% new data to the project’s total drilling database.

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Mon, 08 Apr 2019 09:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218091/galena-mining-attracts-new-substantial-shareholder-in-ubs-group-ag-218091.html
<![CDATA[News - Galena Mining Toho transaction gets due diligence tick ]]> https://www.proactiveinvestors.com.au/companies/news/217577/galena-mining-toho-transaction-gets-due-diligence-tick-217577.html Galena Mining Ltd’s (ASX:G1A) proposed transaction with Japan’s Toho Zinc Co Ltd (TYO:5707) has completed the confirmatory due diligence that was a condition to the transaction.

Toho plans to invest $90 million for a 40% ownership of Galena’s wholly-owned subsidiary Abra Mining Pty Ltd (AMPL), which owns the project.

READ: Galena Mining secures $90 million equity from Toho Zinc to develop Abra Base Metals Project

As foreign investment approval has also been recently received, the only material outstanding conditions to the transaction remain executing the required definitive documents, and related internal approvals.

Galena has agreed to extend the exclusivity period for the transaction by 12 days until 12 April 2019.

The company continues to anticipate the definitive documentation to be executed and the first payment to be made in April 2019.

READ: Galena Mining secures $10 million investment from Kingfisher Capital

Most recently, Galena executed a subscription agreement with Kingfisher Capital to invest $10 million into Galena in two tranches of $5 million each at 40 cents per share.

The company is planning to release a definitive feasibility study (DFS) for the project mid-2019.

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Mon, 01 Apr 2019 09:07:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217577/galena-mining-toho-transaction-gets-due-diligence-tick-217577.html
<![CDATA[News - Galena Mining secures $10 million investment from Kingfisher Capital ]]> https://www.proactiveinvestors.com.au/companies/news/216996/galena-mining-secures-10-million-investment-from-kingfisher-capital-216996.html Galena Mining Ltd (ASX:G1A) has executed a subscription agreement with Kingfisher Capital to invest $10 million into Galena in two tranches of $5 million each at 40 cents per share.

The company has also commenced initial production development drilling at its Abra Base Metals Project in Western Australia’s Gascoyne region.

Galena managing director Alex Molyneux said: “We welcome Kingfisher Capital as a new strategic investor for Galena as further confirmation of the quality of Abra as a leading Australian base metals project.

“I’m also pleased about being able to move forward at this time with the initial project development drilling because it’s important to be in a cycle of de-risking as we move forward with Abra.”

$90 million equity from Toho Zinc

Galena recently signed a term sheet with Japan’s Toho Zinc Co Ltd (TYO:5707) for a $90 million equity investment which will result in Toho gaining 40% ownership of Galena’s wholly-owned subsidiary, Abra Mining Pty Ltd (AMPL), which owns the Abra Base Metals Project.

READ: Galena Mining secures $90 million equity from Toho Zinc to develop Abra Base Metals Project

Toho has now received approval from the Australian Government Foreign Investment Review Board (FIRB) for the transaction.

Kingfisher Capital investment

The first tranche of the $10 million Kingfisher Capital transaction is expected to close imminently whilst the second tranche is conditional on the issue of the initial tranche of shares in AMPL pursuant to the Toho transaction.

Proceeds from the Kingfisher Capital investment will be used in combination with the initial tranches from the Toho transaction to accelerate pre-development works at Abra.

Initial project development drilling at Abra

Galena has commenced an initial project development drilling program at Abra, which the company considers a major advancement of the project.

The drilling will complete decline positioning, water bores and additional infill holes associated with early production horizons.

Under the program, Galena anticipates drilling more than 15,000 metres of diamond core drill holes adding about 25% new data to the project’s total drilling database.

The program will aim to increase confidence within areas of the Abra resource already categorised as indicated and inferred.

In addition to the main purpose, a sub-set of drill holes have been planned for the purposes of overall resource development and near-project exploration.

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Fri, 22 Mar 2019 16:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216996/galena-mining-secures-10-million-investment-from-kingfisher-capital-216996.html
<![CDATA[News - Galena Mining secures $90 million equity from Toho Zinc to develop Abra Base Metals Project ]]> https://www.proactiveinvestors.com.au/companies/news/213655/galena-mining-secures-90-million-equity-from-toho-zinc-to-develop-abra-base-metals-project-213655.html Galena Mining Ltd (ASX:G1A) has secured the equity needed to develop its globally significant Abra Base Metals Project in WA’s Gascoyne region through a $90 million agreement with Japan’s Toho Zinc Co Ltd (TYO:5707).

A Terms Sheet executed with Toho will result in it gaining 40% ownership of Galena’s wholly-owned subsidiary, Abra Mining Pty Ltd (AMPL), which owns the project.

The agreement involves the international zinc and lead smelting company investing $90 million in three tranches.

READ: Galena Mining boosts Abra lead reserves by 8% and adds a year to mine life

Galena’s managing director Alex Molyneux said, “This is a great transaction that provides the equity required to develop Abra, recognising the strategic value of the project.

“Furthermore, Toho is a key player in the global lead and zinc industry and an experienced miner, so we look forward to the benefits of a true partnership in the development of Abra.”

Assuming conditions are satisfied and each tranche of Toho’s investment is completed, Galena will retain a 60% controlling shareholding in AMPL.

This will result in Galena appointing three out of five directors on its board.

Procuring project financing debt

Toho also proposes to assist AMPL to potentially procure a contribution to project financing debt through the attractive programs available from policy financing for Japan-related projects.

READ: Galena Mining’s final permit on track for Abra project

Galena continues to target the start of construction at Abra in 2019, with initial production in 2021 and the first full-year of steady-state commercial production in 2022.

As part of the agreement, Toho and Galena will each have a right to off-take their percentage share of Abra production on arms-length, benchmark terms, and then on-sell to third-parties.

An initial tranche of $20 million is to be paid on closing the transaction and a further $10 million will be paid on completion of the Abra DFS.

First two tranches for early development

Galena and Toho have agreed to apply the majority of the first two tranches to pre-development and early development works at Abra, thereby substantially advancing and de-risking the project.

The final $60 million tranche will be paid on confirmation of project financing debt.

Based on timelines for confirmatory due diligence and third-party regulatory approvals, Galena anticipates the definitive documentation to be executed and the first payment to be made in April 2019.

READ: Galena Mining optimises PFS ahead of publishing DFS in mid-2019

Galena remains on track with work at Abra including the proposed delivery of an optimised pre-feasibility study in coming weeks and completion of the definitive feasibility study in mid-2019.

10.3-million-tonne reserve

Abra hosts a JORC-compliant probable ore reserve estimate of 10.3 million tonnes at 8.8% lead and 24 g/t silver.

This is within an indicated and inferred mineral resource estimate at a 5.0% lead cut-off of 37.4 million tonnes at 7.5% lead and 18 g/t silver.

Significant zinc-lead player

Toho was founded with the establishment of the Annaka Zinc Smelter and Refinery in 1937 followed by its zinc and lead mine operation in Japan.

With the addition of further smelters and refineries, Toho has grown to account for 20% of the Japanese domestic market share for zinc production.

Concentrate produced in tests of Abra ore.

It is also the Japanese leader in lead production, is a leading domestic producer of silver and has the only primary lead smelter in Japan.

In 2010, Toho acquired the publicly-listed Australian mining company CBH Resources Limited to increase Toho’s self-sufficiency for zinc and lead ore.

Through CBH, Toho continues to be a significant miner of lead, zinc and silver in Australia via the Rasp mine in Broken Hill and the Endeavor mine near Cobar.

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Thu, 31 Jan 2019 09:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213655/galena-mining-secures-90-million-equity-from-toho-zinc-to-develop-abra-base-metals-project-213655.html
<![CDATA[News - Galena Mining granted trading halt pending financing initiative for Abra project ]]> https://www.proactiveinvestors.com.au/companies/news/213459/galena-mining-granted-trading-halt-pending-financing-initiative-for-abra-project-213459.html Galena Mining Ltd (ASX:G1A) has been granted a trading halt by the ASX pending an announcement regarding a major financing initiative for its Abra Base Metals Project.

The halt will remain in place until the earlier of the start of trading on Thursday, January 31, or an announcement is released to market.

 

Galena is updating and optimising its pre-feasibility study (PFS) after receiving a key Western Australian Government approval to build processing and tailings storage facilities at Abra.

The original September 2018 PFS had a pre-development capital expenditure estimate of $154 million with pre-tax net present value totalling $528 million at an 8% discount.

The company aims to obtain financing for Abra this year so it can start underground mine development and process plant construction in the December 2019 half-year.

Galena hopes to open the mine in 2020 and be processing ore the same year.

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Mon, 28 Jan 2019 20:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213459/galena-mining-granted-trading-halt-pending-financing-initiative-for-abra-project-213459.html
<![CDATA[News - Galena Mining optimises PFS ahead of publishing DFS in mid-2019 ]]> https://www.proactiveinvestors.com.au/companies/news/212650/galena-mining-optimises-pfs-ahead-of-publishing-dfs-in-mid-2019-212650.html Galena Mining Ltd (ASX:G1A) is updating and optimising its pre-feasibility study (PFS) after receiving a key Western Australian Government approval to build processing plant and tailings storage facilities at its Abra Base Metals Project.

The WA company views the Department of Water and Environmental Regulation (DWER) approval as the last major approval it needs to develop its wholly-owned project.

Galena’s optimisation of its PFS is expected early this year.

The Subiaco-based company’s original September 2018 PFS had a pre-development capital expenditure estimate of $154 million, putting pre-tax net present value (NPV8) for Abra at $528 million at an 8% discount rate.

Abra project’s internal rate of return was 50%.

 

Galena managing director Alex Molyneux reported the company believed the approval was the final ‘gating’ permit to having Abra fully permitted.

Abra deposit sits entirely within a granted mining lease.

Molyneux said on January 3, 2019: “It is very pleasing to have it accepted as it confirms we’re on track to have permitting completed in Q2.”

Sensitivity analysis for Abra’s pre-tax NPV, in the September 2018 PFS

READ: Galena Mining boosts Abra lead reserves by 8% and adds a year to mine life

The prediction of a June 2019 quarter finish-up to permitting came after the company received acceptances of its mining proposal, mine closure plan and environmental management system applications in October 2018.

Abra is northeast of Geraldton port in the Mid-West region and south by road from Port Hedland in the Pilbara.

Several other leases have been granted for plant and infrastructure.

The updated PFS will feature the December 2018 updated JORC resource and ore reserve.

READ: Galena Mining’s final permit on track for Abra Project

Molyneux spoke to Proactive Investors’ Stocktube video channel this month about the updated resource and reserve, and the optimisation work the company is making to its PFS after the inventory updates.

He noted: “The new resource is 37.4 million tonnes at 7.5% lead and 18 grams per tonne silver.

“The resource (also has) a bit higher grade than the old resource, and it contains about 200,000 tonnes more lead overall.”

The updated resource statement was prepared independently by Optiro Pty Ltd after Galena finished its 2018 resource infill and development drilling program.

Optiro based its estimate on geological assay data from 102 diamond core drill holes for 59,751 cumulative linear metres completed up to the end of October 2018.

In 2018, Galena drilled 21 diamond core drill-holes for about 12,900 cumulative linear metres.

Galena’s December 2018 resource and reserve estimate for Abra project in WA

Last month, Galena reported about 12 months would be added to the 14-year mine life of the company’s September 2018 PFS, putting mine life at 15 years.

Molyneux told Proactive this month: “At our throughput rate for Abra, we’re basically talking about the potential for an extra year of mine life.

BIG PICTURE: Galena Mining launches into Abra Base Metals Project DFS to follow-up ‘excellent’ PFS

“The grades of the material in the mine model have gone up, so there is 6% more lead, there is 20% more silver in terms of the feed grades going through.

“And so there is great potential for increased revenue and margins in comparison to the data that was used to form the PFS back in September.”

The storage area for Abra drill core

While the optimisation work will be considered in the company’s definitive feasibility study (DFS) it will not delay the study which and remains on track to be finalised in mid-2019.

GR Engineering Services Ltd (ASX:GNG) is undertaking key portions of the DFS.

This work includes plant design, capital cost and operating cost estimation, process and non-process infrastructure evaluation.

A 3D oblique view of Abra’s December 2018 resource, looking southeast

GR Engineering was involved in the Abra PFS published last September, with GRE managing director Geoff Jones saying the company planned to “assist Galena (to) realise the significant potential of the Abra Base Metals Project.”

Galena’s timetable for Abra development, last updated in December 2018

The company hopes to obtain financing for Abra this year so it can start infrastructure and underground mine development and processing plant construction in the December 2019 half-year.

Galena hopes to open its Abra mine in 2020 and be processing ore the same year.

Quarterly results and major shareholders

The company has a market capitalisation of $61.2 million and held $4.8 million cash on September 30, 2018, after spending $3.7 million in the September 2018 quarter.

Bloomgold Resources Pty Ltd was Galena’s largest shareholder on September 6, 2018, holding a 24.44% stake.

JP Morgan Nominees Australia Ltd was second largest shareholder, with a 5.51% holding.

The company’s top 20 shareholders held 67.39% of the company and also included Citicorp Nominees Pty Ltd (4.13%) and HSBC Custody Nominees Australia Ltd (3.56%).

There were 336,564,520 fully paid shares on issue held by 730 shareholders.

 

— with Danielle Doporto, John Miller and Tharun George

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Tue, 15 Jan 2019 22:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212650/galena-mining-optimises-pfs-ahead-of-publishing-dfs-in-mid-2019-212650.html
<![CDATA[Media files - Galena Mining optimising PFS to reflect evolved economics of Abra; on track with DFS ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11695/galena-mining-optimising-pfs-to-reflect-evolved-economics-of-abra-on-track-with-dfs-11695.html Thu, 03 Jan 2019 12:43:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11695/galena-mining-optimising-pfs-to-reflect-evolved-economics-of-abra-on-track-with-dfs-11695.html <![CDATA[News - Galena Mining’s final permit on track for Abra Project ]]> https://www.proactiveinvestors.com.au/companies/news/211873/galena-minings-final-permit-on-track-for-abra-project-211873.html Galena Mining Ltd (ASX:G1A) has had its application for a Works Approval for construction of the proposed processing plant and tailings storage facilities accepted.

It was accepted by the Western Australian Department of Water and Environmental Regulation (DWER).

In Galena’s opinion, according to estimated application processing times, this latest Works Approval will be the last major approval to be gained for Abra to be fully permitted.

Its acceptance at this time puts the project on-track to complete permitting within the second quarter of the 2019 calendar year.

READ: Galena Mining boosts Abra lead reserves by 8% and adds a year to mine life

Galena’s managing director Alex Molyneux said: “We believe this latest DWER Works Approval application will be the final ‘gating’ permit to having Abra fully permitted.

“It is very pleasing to have it accepted as it confirms we’re on-track to have permitting completed in Q2.”

Works Approval follows other recent applications

The processing plant and tailings storage construction application is in addition to a DWER Works Approval application for mine construction that was accepted back in September 2018.

Furthermore, the Mining Proposal, Mine Closure Plan and Environmental Management System applications were lodged and accepted in October 2018.

With regard to the project tenure, several miscellaneous and general purpose leases have been recently granted for plant and infrastructure.

The Abra deposit already sits entirely within a granted mining lease.

Targeting construction this year

Galena continues to target commencement of construction of Abra in 2019, with initial production in 2021 and the first full-year of steady-state commercial production in 2022.

A number of other near-term milestones also exist for Galena including the completion of an optimisation of the previously completed pre-feasibility study (PFS) in early-2019.

This updated PFS will incorporate the December 2018 updated JORC resource and Ore Reserve.

Completion of the definitive feasibility study (DFS) will not be delayed and remains on-track to be finalised in mid-2019.

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Thu, 03 Jan 2019 10:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211873/galena-minings-final-permit-on-track-for-abra-project-211873.html
<![CDATA[News - Galena Mining boosts Abra lead reserves by 8% and adds a year to mine life ]]> https://www.proactiveinvestors.com.au/companies/news/211274/galena-mining-boosts-abra-lead-reserves-by-8-and-adds-a-year-to-mine-life-211274.html Galena Mining Ltd (ASX:G1A) has boosted lead reserves by 8% and silver by 18% in an updated resources and reserves statement for the Abra Base Metals Project in Western Australia’s Gascoyne region.

The new JORC-compliant probable ore reserve estimate of 10.3 million tonnes at 8.8% lead and 24 g/t silver also incorporates a 9% increase in lead metal grade.

This reserve is within an indicated and inferred mineral resource estimate at a 5.0% lead cut-off of 37.4 million tonnes at 7.5% lead and 18 g/t silver.

READ: Galena Mining launches into Abra Base Metals Project DFS to follow-up “excellent” PFS

Galena’s managing director Alex Molyneux said: “It’s really pleasing to continue Abra’s development with updated resources, reserves and the new mine model.”

The updated reserve estimate has also resulted in revised mine model material of 16.4 million tonnes at 8.2% lead and 22 g/t silver.

This compares favourably to the mine model assumed for the pre-feasibility study (PFS), adding about an extra year of mine life to 15 years.

There is around 6% higher average lead grade over the life of mine with about 169,000 tonnes of additional lead metal along with higher average silver grade and around 16% more silver metal.

Less lateral development needed

Galena is also buoyed by a revised assessment of resource geometry and revised mine model which results in around 13 kilometres less lateral development than assumed for the PFS.

Molineux said: “We’re very excited about the extra grade and metal over the reduced lateral development and their combined potential for material enhancement to the economics of Abra.”

READ: Galena Mining strengthens board with operational experience as Abra moves to development

3D oblique view of Abra December 2018 resource looking southeast.

Galena intends to release an optimised PFS in early 2019 taking into account the potential of the increased metal content and lower development metres to improve economic outcomes.

This work will take place as an interim update before release of a definitive feasibility study (DFS) for Abra but will not delay the DFS in any way.

The updated resource statement for Abra has been prepared by independently prepared by Optiro Pty Ltd following completion of the 2018 resource infill and development drilling program.

This consisted of 21 diamond core drill-holes for about 12,900 cumulative linear metres of drilling.

Optiro’s estimate is based on geological assay data from 102 diamond core drill holes for 59,751 cumulative linear metres completed up to the end of October 2018.

199,000 tonnes more lead metal

The resource, which is from the upper Apron Zone and the Lower Core Zone, contains around 199,000 tonnes more lead metal than the PFS updated resource.

Importantly, from a potential mining perspective, about 96% of this additional lead has been added in the upper Apron Zone.

Stylised geological cross-section of Abra looking east.

Galena said that the updated resources and reserves continued to confirm Abra’s standing as a globally significant lead-silver deposit.

READ: Galena Mining to spin out non-core assets into IPO of Metal Range Limited

The company continues to assume long-hole open stoping as the primary mining method for Abra, with paste backfill.

However, certain shallow dipping areas within the Apron Zone will be mined as room and pillar.

Based on a pre-development capital expenditure estimate of $154 million, the PFS modelled a pre-tax net present value for Abra, at an 8% discount rate, of $528 million and an internal rate of return of 50%.

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Mon, 17 Dec 2018 10:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211274/galena-mining-boosts-abra-lead-reserves-by-8-and-adds-a-year-to-mine-life-211274.html
<![CDATA[News - Galena Mining director Tony James buys shares through on-market trades ]]> https://www.proactiveinvestors.com.au/companies/news/209423/galena-mining-director-tony-james-buys-shares-through-on-market-trades-209423.html Galena Mining Ltd’s (ASX:G1A) recently appointed non-executive director Tony James and Ann Morag James (The James Family) have acquired 115,000 shares through on-market purchases.

READ: Galena Mining strengthens board with operational experience as Abra moves to development

The company recently strengthened the operational capabilities of its board as its Abra Base Metals Project in Western Australia moves into the development phase.

Tony James, who has considerable senior underground operational and development experience, was appointed non-executive director as part of the continuing evolution of Galena’s board and management to ensure the best available skills are employed to advance the development of Abra.

Experience with other companies

James has previously served as managing director of various mining companies, including Carbine Resources Ltd (ASX:CRB), Atherton Resources and Mutiny Gold.

At Atherton, he achieved a favourable outcome for shareholders which culminated in a cash takeover by Auctus Minerals.

He led the implementation of a revised development strategy for Mutiny’s Deflector copper-gold deposit in WA prior to the merger with Doray Minerals Limited (ASX:DRM).

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Mon, 19 Nov 2018 16:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209423/galena-mining-director-tony-james-buys-shares-through-on-market-trades-209423.html
<![CDATA[News - Galena Mining to spin out non-core assets into IPO of Metal Range Limited ]]> https://www.proactiveinvestors.com.au/companies/news/207513/galena-mining-to-spin-out-non-core-assets-into-ipo-of-metal-range-limited-207513.html Galena Mining Ltd (ASX:G1A) has shared a plan to divest its non-core assets into a new company Metal Range Limited planning to list on the ASX.

The company said today Metal Range would house Galena’s early-stage polymetallic base metals exploration prospects, Woodlands, Manganese Range and Quartzite Well.

The divestment allows Galena to firmly focus on its flagship Abra Base Metals Project in Western Australia.

READ: Galena Mining strengthens board with operational experience as Abra moves to development

Galena released a pre-feasibility study for the Abra project last month and moved onto a definitive feasibility study earlier this month.

Leading Australian engineering consulting and contracting company GR Engineering Services Ltd (ASX:GNG) will undertake key portions of the DFS.

Galena is aiming to produce first lead-silver concentrate from Abra in 2021.

The company said today Galena retains the exploration licence for the area “immediately surrounding Abra”, including Hyperion prospect, and the resource development potential of Abra’s granted mining licence.

READ: Galena Mining launches into Abra Base Metals Project DFS to follow-up “excellent” PFS

Galena managing director Alex Molyneux told the market: “Galena is laser-focused on getting Abra into construction in 2019 and the separation of Metal Range helps with that, whilst it may also create additional optionality for our shareholders to participate in a separate ASX listing and priority offer.”

The company said it intended to make a priority offering to Galena shareholders for fundraising linked to the planned Metal Range initial public offering.

Molyneux shared on behalf of the company: “Galena will be able to focus all of its resources including its management time and funds to accelerate the development of Abra with a view to moving into construction in 2019.”

READ: Galena Mining celebrates a year amid increased equity

Galena had agreed to “vend-in” to four exploration licences about 20 kilometres west of Abra – the E52/1413, E52/3575, E52/3630 and E52/3581 exploration licences – and these rights and ownerships will move into Metal Range.

The company shared a map showing the proposed separation of Galena and Metal Range tenements and highlighted drilling achievements at Metal Range prospects.

Highlights from drilling featured 10.5 metres grading 0.42% copper from 332 metres in GWD001, including 0.5 metres at 1.63% copper and 0.25 g/t gold.

Galena’s Manganese Range prospects will go into the newco, where limited shallow historical reconnaissance drilling returned 28 metres grading 2.3% lead, 32 g/t silver and 1.2% zinc, and 12 metres at 18.8% manganese.

Quartzite Well had 34 metres at 2% lead, 1.1% zinc and six metres at 5.9% lead.

Both prospects are key to future exploration efforts for newco Metal Range.

Molyneux shared on behalf of the company: “Exploration activity on the Metal Range Prospects will be able to be accelerated as a priority in a new stand-alone entity.”

Galena plans to remain a shareholder of Metal Range after additional investors join its registry, ensuring its current investors continue to benefit from the asset holdings.

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Sun, 21 Oct 2018 20:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207513/galena-mining-to-spin-out-non-core-assets-into-ipo-of-metal-range-limited-207513.html
<![CDATA[News - Galena Mining strengthens board with operational experience as Abra moves to development ]]> https://www.proactiveinvestors.com.au/companies/news/207024/galena-mining-strengthens-board-with-operational-experience-as-abra-moves-to-development-207024.html Galena Mining Ltd (ASX:G1A) has strengthened the operational capabilities of its board as its Abra Base Metals Project in WA moves into the development phase.

Tony James, who has considerable senior underground operational and development experience, has been appointed as a non-executive director.

This forms part of the continuing evolution of Galena’s board and management to ensure the best available skills are employed to advance the development of Abra.

READ: Galena Mining launches into Abra Base Metals Project DFS to follow-up “excellent” PFS

Chairman Adrian Byass said, “Galena’s Board and management are very much looking forward to benefitting from Tony’s top-level expertise and active input as we move forward at Abra.

“Tony’s willingness to join following his due diligence on Abra is a great demonstration of the robustness of assumptions behind the project development plans.”

Founding director resigns

The appointment of James coincides with the resignation of non-executive director Olly Cairns.

Byass said, “Olly Cairns was instrumental in the formation of Galena and part of the team which has created this successful emergent company.

“As a founding director from the IPO, Olly has been part of creating the culture and momentum that Galena enjoys.

“On behalf of the company I would like to thank him for his hard work, dedication and valued input, whilst wishing him the best for his future endeavours.”

Experience with other companies

James has previously served as managing director of various mining companies, including Carbine Resources Ltd (ASX:CRB), Atherton Resources and Mutiny Gold.

At Atherton, he achieved a favourable outcome for shareholders which culminated in a cash takeover by Auctus Minerals.

He led the implementation of a revised development strategy for Mutiny’s Deflector copper-gold deposit in WA prior to the merger with Doray Minerals Limited (ASX:DRM).

Operational experience

Prior to these director roles, James held a number of senior executive positions with international gold producer Alacer Gold Corp (TSE:ASR), including president of its Australian operations.

He also played a key role in Avoca Resources’ initial growth and success, leading the feasibility, development and operation of its Higginsvile Gold Mine.

The Abra project is a globally significant lead-silver project in the Gascoyne region of Western Australia, about 110 kilometres from Sandfire Resources NL’s (ASX:SFR) DeGrussa project.

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Mon, 15 Oct 2018 10:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207024/galena-mining-strengthens-board-with-operational-experience-as-abra-moves-to-development-207024.html
<![CDATA[News - Galena Mining launches into Abra Base Metals Project DFS to follow-up “excellent” PFS ]]> https://www.proactiveinvestors.com.au/companies/news/206833/galena-mining-launches-into-abra-base-metals-project-dfs-to-follow-up-excellent-pfs-206833.html Galena Mining Ltd (ASX:G1A) has followed-up an “excellent” pre-feasibility study (PFS) for the Abra Base Metals Project in Western Australia by starting a definitive feasibility study (DFS).

Leading Australian engineering consulting and contracting company, GR Engineering Services Ltd (ASX:GNG), has been retained to undertake key portions of the DFS.

This work will include plant design, capital cost and operating cost estimation, process and non-process infrastructure evaluation.

READ: Galena Mining delivers “excellent” PFS which confirms potential of Abra Base Metals Project

Managing director Alex Molyneux said, “The recently published PFS for Abra demonstrated outstanding investment returns and we’re keen to see it engineered to the highest standards so we’re in a strong position to commence construction next year.

“In this regard we’re very pleased to have GR Engineering onboard in a key role.”

The DFS is targeted to be complete in mid-2019 with Galena targeting the start of construction in 2019, initial production in 2021 and the first full-year of steady-state commercial production in 2022.

A number of key items in the PFS have been completed to DFS-level including geotechnical drilling, metallurgical test work, environmental studies and reports, water supply analysis, hydrogeology, underground mine designs and infrastructure design.

Impressive track record

In the past 11 years, GR Engineering has completed more than 40 design and construction projects and over 160 feasibility studies including a number of ‘flagship’ Australian base metals projects.

Its managing director Geoff Jones said, “GR Engineering was involved in the Abra PFS and we are pleased to have been engaged to deliver key aspects of the DFS and to assist Galena realise the significant potential of the Abra Base Metals Project.”

Key technical appointment

Galena has also appointed a fulltime metallurgy and study manager to lead the internal DFS work under the guidance of chief operating officer Troy Flannery.

The company intends adding further experts to its technical and operating team in the lead-up to project construction.

The storage area for Abra drill core.

Start of the DFS follows the completion last month of the PFS.

READ: Galena Mining celebrates a year amid increased equity

The PFS envisages a 1.2 million tonne per annum throughput underground mine and conventional flotation concentrator.

This would produce a high-grade, high-value lead-silver concentrate containing 91,000 tonnes of lead and 760,000 ounces of silver annually over a 14-year mine life.

Galena said economic outcomes from the PFS were outstanding, with pre-tax net present value of $528 million, calculated at an 8% discount rate, and an internal rate of return of 50%.

Future work program

While work advances on then DFS, Galena plans to progress a number of value-adding milestone workstreams in parallel, including:

- Preparation of an updated mineral resource estimate including 2018 resource development and infill drilling data; - A review of the Abra ore reserve and underground mine designs/schedule following the updated resource estimate for a potential reserve update and optimisation of the PFS; - Continuation of permitting works, including lodgement of the final mining proposal in the next three to four months; - Ongoing discussions with multiple potential customers/offtakers; and - Continuation of recently initiated discussions with project financing parties, including traditional project financing banks and strategic counterparties.

Abra resource

Abra’s current resource totals 36.7 million tonnes at 7.3% lead and 18 g/t silver, and within this is a probable ore reserve of 10.5 million tonnes at 8.1% lead and 20 g/t silver.

Abra is in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra, and about 110 kilometres from the DeGrussa project of Sandfire Resources NL (ASX:SFR).

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Thu, 11 Oct 2018 09:32:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206833/galena-mining-launches-into-abra-base-metals-project-dfs-to-follow-up-excellent-pfs-206833.html
<![CDATA[Media files - Galena Mining's Abra project has NPV 8 times greater than market cap following PFS ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10648/galena-mining-s-abra-project-has-npv-8-times-greater-than-market-cap-following-pfs-10648.html Fri, 28 Sep 2018 01:28:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10648/galena-mining-s-abra-project-has-npv-8-times-greater-than-market-cap-following-pfs-10648.html <![CDATA[News - Galena Mining delivers “excellent” PFS which confirms potential of Abra Base Metals Project ]]> https://www.proactiveinvestors.com.au/companies/news/205591/galena-mining-delivers-excellent-pfs-which-confirms-potential-of-abra-base-metals-project-205591.html Galena Mining Ltd (ASX:G1A) has confirmed the world-class potential of its Abra Base Metals Project in Western Australia by way of an “excellent” pre-feasibility study (PFS).

The company stated: “The excellent PFS confirms the technical and economic robustness of developing an integrated mining and processing operation to produce a high-value, high-grade lead-silver concentrate."

In most respects the PFS outcomes “confirm or exceed the previously completed scoping study”.

READ: Galena Mining celebrates a year amid increased equity

Transformational improvements have been delivered in terms of project scale and value with a pre-tax NPV of $528 million and an IRR of 50%.

Managing director Alex Molyneux said, “This PFS confirms Abra is one of the best base metals projects in the world in terms of high investment returns, low country risk and market significance.

“The overall value of the project has also just got a whole lot bigger with the NPV rising by 34% million and a number of years additional mine life.”

“Work done for the PFS also confirms we have a clear pathway to complete permitting and other pre-development works quickly,” Molyneux said.

“Abra is a very ‘executable’ project and it will be the absolute mission of Galena’s team to move it into construction in a timely manner.”

Shares up 11%

Investors responded positively with shares up 11% in early trade to 19.5 cents.

The PFS outlines a 14-year mine life producing a high-value, high-grade lead-silver concentrate containing 91,000 tonnes of lead and 760,000 ounces of silver annually after ramp-up.

These enhancements have been gained by improvements and optimisation of mining methods, stope designs and scheduling since the scoping study.

Improvements have been made with no material increase in pre-development capital expenditure or direct cash operating costs.

“As a result, the value of Abra in NPV terms has transformationally increased whilst underlying investment returns remain extremely strong,” Galena stated.

The average annual net free cash flow during commercial production has been estimated at $97 million.

READ: Galena Mining confirms high-grade mineralisation outside Abra resource

Abra’s cash costs are estimated to be attractive compared to other global primary lead producers with the PFS  putting the C1 direct cash cost of production at US$0.48 per pound of lead.

Maiden ore reserve

Completion of the PFS has also allowed the company to declare a maiden JORC ore reserve of 10.5 million tonnes at 8.1% lead and 20 g/t silver in the probable category.

Galena has established a clear pathway for rapid completion of permitting and other pre-development works and remains on track for the commencement of construction in 2019.

Abra PFS pre-tax NPV sensitivity analysis.

A number of key work areas included in the PFS have been completed to definitive feasibility study (DFS) level.

READ: Galena Mining appoints Alex Molyneux as MD as it transitions to base metal producer

These include geotechnical drilling; metallurgical test work; environmental studies and reports; water supply analysis; hydrogeology; underground mine designs and monthly mining schedule; and infrastructure design. Galena, therefore, aims to focus on a number of parallel workstreams over the next few months to move towards a construction decision as soon as possible.

Isometric view of PFS mine design looking west.

Upcoming milestones

Upcoming value-adding milestone workstreams include:

- Preparation of an updated mineral resource estimate once the current ongoing drilling program completes, all assays are received, and data processed. - A review of the ore reserve and underground mine designs/schedule following the updated resource estimate for a potential reserve update and optimisation of the PFS. - Permitting works – Galena has already concluded, based on completed base line environmental studies that the project does not require EPA approval. Furthermore, it has already lodged various applications for minor permits allowing for infrastructure works approvals. It aims to lodge its final mining proposal in three to four months.     - Ongoing discussions with potential customers – Galena commenced engagement with a number of potential customers as part of the PFS process, receiving a very positive response. The company plans to continue engagement over coming months with a view to considering formal offtake arrangements. - Advancing discussions with project financiers – The company has initiated preliminary discussions with a number of parties regarding project financing. Such parties include traditional project financing banks and strategic counterparties. - Completion of a DFS. Initial production targeted for 2021

Galena continues to target commencement of construction at Abra in 2019, initial production in 2021 and the first full-year of steady-state commercial production in 2022.

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Tue, 25 Sep 2018 11:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205591/galena-mining-delivers-excellent-pfs-which-confirms-potential-of-abra-base-metals-project-205591.html
<![CDATA[News - Galena Mining celebrates a year amid increased equity ]]> https://www.proactiveinvestors.com.au/companies/news/205426/galena-mining-celebrates-a-year-amid-increased-equity-205426.html Galena Mining Ltd (ASX:G1A) has celebrated a year on the Australian Securities Exchange after increasing total equity in the company 33,357% to $16.8 million.

The company, which listed on the ASX a year and 2 weeks ago, released its annual results to market today as it moved towards finishing up a pre-feasibility study for the project this month.

READ: Galena Mining confirms high-grade mineralisation outside Abra resource

Galena’s Abra Base Metals Project, which assumes a US$0.95 a pound lead price, could be buoyed by a favourable market outlook for lead.

The commodity has averaged US$0.97 a pound over the last 10 years.

Galena releases annual results

The exploration and development company put out its 2017-18 annual report today, unveiling $61,855 in revenue and a $1.2 million total comprehensive loss for the financial year.

Galena’s 2018 revenue result was a turnaround, given it wrote a nil amount the previous financial year.

The company’s 2018 comprehensive loss was a $487,748 or 67% increase on the previous financial year and equated to 49 cents a share, a 77% reduction in the $2.13 a share loss of the 2016-17 financial year.

Galena increased total assets by $17.72 million or 23,009% to $17.8 million, while upping total liabilities by $934,481 or 3,500% to $961,183.

The company added $16.79 million or 33,357% to its total equity to finish the financial year with $16.84 million equity.

Among that was $8.5 million in cash and cash equivalents on June 30.

Previous study

Galena completed a scoping study in June which indicated strong positive economics for its flagship Abra project in the Gascoyne region of Western Australia.

The base metals project study confirmed Abra as an economically and technically robust opportunity, with the project having the potential to become a significant, long-life, high margin lead-silver producer.

Considerable exploration potential exists for additional lead-silver mineralisation to be converted to JORC resource with additional drilling.

New area includes high grades

Areas for extension include a new expanse 150 metres from the resource announced in March, which could can potentially provide high-grade inventory in the early years of Abra’s mine plan.

One hole from the area assayed: 16.2 metres at 9.2% lead and 44 g/t silver, including 4.5 metres at 15.1% lead and 44 g/t silver; and 6 metres at 14.5% lead and 28 g/t silver.

Other assays included: 6 metres at 11.8% and 19 g/t silver; and 4.6 metres at 5.9% lead and 19 g/t silver.

READ: Galena Mining appoints Alex Molyneux as MD as it transitions to base metal producer

Galena’s new managing director Alex Molyneux told the market 11 days ago: “These results are very exciting because they confirm high-grade mineralisation extends 150 metres beyond the existing resource model mineralised area.

“This bodes well for achieving our resource development ambitions when we come to publish an updated mineral resource estimate.”

Abra’s Gascoyne region resource consists of 36.6 million tonnes at 7.3% lead and 18 g/t silver.

READ: Galena Mining's shares spike on confirmation of world-class lead-silver resource at Abra

Former Galena MD Ed Turner said in June the company’s scoping study had “confirmed the economic viability of the Abra project.

He reported in June: “It has increased our confidence in the real potential of the project as a near-term Western Australian development opportunity.

“This is an exciting long-life, high margin and low capital project in a tier-1 jurisdiction.

“Abra’s latest representative metallurgical test work demonstrates that it can produce a very high grade (74.5% lead and 140 g/t silver), high-quality clean concentrate that is in high demand.” 

Potential upside

At its full production rate, Abra is projected to be fifth or sixth largest lead producer in the world.

The scoping study was based on work undertaken by Galena and a study team consisting of in-house personnel and external, independent industry-expert consultants.

It relates to underground mining, ore processing, mine site infrastructure, environmental permitting, logistics and marketing.

The study is also underpinned by the extensive historical technical database that has been acquired by Galena.

Scoping study outcomes

Among the outcomes are:

Base case pre-tax post royalties NPV10 of $394 million and IRR of 61%, based on a long-term lead price of US$0.95/pound, silver price of US$16.50/ounce and USD:AUD exchange rate of $0.75; Spot case pre-tax post royalties NPV10 of $615 million and IRR of 82% (based on spot Pb price of US$1.14/lb, silver (Ag) price of US$16.50/oz and USD: AUD of $0.75); Initial mine life of 11 years, with opportunities identified to extend beyond 11 years; Annual throughput of 1 million tonnes, with average grades of 9.7% lead and 15 g/t silver, producing 91,000 tonnes of lead and 450,000 ounces of silver; Average life of mine cash (C1) costs of US$0.46/pound and total costs (C3) costs of US$0.56/pound (includes all royalties) – high margin, strongly cash generative operation; Average LOM revenues estimate of $251 million and operating cash flows of $104 million per year (Base Case); and Pre-production CAPEX estimated to be $153 million with a payback period of about 18 months. Strong lead outlook

Potential development of Abra coincides with a strong outlook for lead.

Increasing demand and reducing supply has produced an average spot lead price of US$0.97 per pound over the last 10 years.

Given the strength of the scoping study, Galena is progressing into the next phase of work at Abra across multiple fronts and at a maximum pace.

Galena owns 100% of the base metals project, which is in the Gascoyne region of Western Australia.

It was discovered in the late 1970s and has been the subject of an extensive historical exploration and preliminary level economic studies.

There has been no previous mining activity and the deposit does not outcrop.

Focus on high-grade mineralisation

The proposed throughput rate allows mining to focus on high-grade lead-silver mineralisation.

This rate is based on mining studies performed on the latest JORC resource estimate.

The mineable material that is the basis of the study compromises 9.2 million tonnes at a grade of 9.7% lead and 15 g/t silver for a contained 842,500 tonnes of lead and 4.2 million ounces of silver.

About 51% of the mineable material is in the indicated category with the first two years of production in this category.

This ensures 100% of the payback period of less than 1.5 years of production is mining solely indicated resources.

Mining method

The planned mining method comprises an underground mine accessed by a decline.

Initial material is expected to be mined during quarter one of 2021.

Underground extraction will be mostly by sublevel open stoping mining and partly by room and pillar mining.

These methods, together with paste filling high-value stopes, will enable maximum extraction of the ore body.

Underground material will be trucked to the surface via the access decline.

Processing method

Processing will comprise conventional crushing, grinding and two stages of conventional flotation and filtration to produce a lead (plus silver) concentrate.

The construction cost of the facility is estimated at $66 million including $6 million of contingency costs.

Construction is scheduled to begin during the second quarter of 2020, with a 15-month time frame for commissioning.

Near-term schedule

The next steps for Galena’s Abra project include:

Completing the pre-feasibility study in September 2018; Additional infill drilling to convert more inferred resource material to the higher confidence indicated classification in late 2018; and Completing the marketing exercise with potential buyers, including smelters and traders, to obtain contract terms for Abra’s lead concentrate.

 

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Fri, 21 Sep 2018 05:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205426/galena-mining-celebrates-a-year-amid-increased-equity-205426.html
<![CDATA[News - Galena Mining confirms high-grade mineralisation outside Abra resource ]]> https://www.proactiveinvestors.com.au/companies/news/204476/galena-mining-confirms-high-grade-mineralisation-outside-abra-resource-204476.html Galena Mining Ltd (ASX:G1A) has confirmed high-grade mineralisation adjacent to the existing resource area at its Abra Base Metals Project in Western Australia.

Assays from four new drill holes have delineated the mineralisation just 150 metres outside the Abra resource estimate posted in March 2018.

The drilling is part of a 20-hole infill and development program aiming to upgrade the resource volume and test for extensions in the lead-up to a pre-feasibility study.

 

One hole from the newly discovered area gave results of: 16.2 metres at 9.2% lead and 44 g/t silver, including 4.5 metres at 15.1% lead and 44 g/t silver; and 6 metres at 14.5% lead and 28 g/t silver.

Other highlighted assays include: 6 metres at 11.8% and 19 g/t silver; and 4.6 metres at 5.9% lead and 19 g/t silver.

Galena managing director Alex Molyneux said: “These results are very exciting because they confirm high-grade mineralisation extends 150 metres beyond the existing resource model mineralised area.

“This bodes well for achieving our resource development ambitions when we come to publish an updated mineral resource estimate.”

  READ: Galena Mining hits further high-grade lead, likely to add to Abra resource

The high-grade results come from the shallower north-western area of the Abra deposit, very near the currently proposed access decline.

The mineralisation remains open along strike to the northwest as well as down-dip.

It is likely the newly-identified mineralisation will provide additional inventory for the earliest years of mining based on Galena’s current mine plan.

READ: Galena Mining appoints Alex Molyneux as MD as it transitions to base metal producer

Abra is a high-grade lead-silver deposit with additional copper-gold mineralisation, halfway between the towns of Newman and Meekatharra and 110 kilometres from the DeGrussa Copper Mine owned by Sandfire Resources NL (ASX:SFR).

The recently posted Abra scoping study confirmed the project as an economically and technically robust opportunity, with potential to become a long-life, high-margin West Australian lead-silver producer.

Galena remains on-track to complete a pre-feasibility study due this month.

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Sun, 09 Sep 2018 21:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204476/galena-mining-confirms-high-grade-mineralisation-outside-abra-resource-204476.html
<![CDATA[News - Galena Mining hits further high-grade lead, likely to add to Abra resource ]]> https://www.proactiveinvestors.com.au/companies/news/203831/galena-mining-hits-further-high-grade-lead-likely-to-add-to-abra-resource-203831.html Galena Mining Ltd’s (ASX:G1A) high-grade lead results of up to 16% over 5.5 metres are likely to provide additional resource tonnes in the first years of production at Abra Base Metals Project in WA.

Results have been received from a further six holes which are part of a resource development drilling program at the lead-silver-copper-gold-zinc project in the Gascoyne region.

READ: Galena Mining intersects more high-grade lead and silver at Abra

The program is primarily targeting the Apron Zone and is designed to increase confidence in parts of the resource for a pre-feasibility study.

This is expected to be completed in September and will be followed up with a feasibility study for completion in mid-2019.

 

Galena CEO Ed Turner said, “We are very pleased with these results as they continue to support our geological and resource model for the Abra deposit.

“This drives our optimisations as well as adds additional tonnes in areas closest to surface which can be exploited in the first year of production.”

One hole returned 5.5 metres at 16.0 % lead and 22 g/t silver from 291.9 metres, and 6.1 metres at 8.1% lead and 11 g/t silver from 327.9 metres.

Resource extensions have been identified up-dip in the northwest sector, which are expected to provide additional high-grade resource tonnes in the first production years.

3D model of the Core and Apron zones showing drilling results and resource outlines.

Another hole returned 13.3 metres at 9.0% lead and 20 g/t silver from 416.5 metres; 6 metres at 8.1% lead and 15 g/t silver from 495 metres; and 6.7 metres at 8.9% lead, 28 g/t silver and 0.3% copper from 640.8 metres.

Other results include 4.3 metres at 8.1% lead and 10 g/t silver from 562.9 metres, and 6.1 metres at 13.4% lead and 16 g/t silver from 622.9 metres with mineralisation open down-dip to the southeast.

READ: Galena Mining buoyed by positive economics in Abra Base Metals Project scoping study

The program was based on underground optimisation work published in a recent scoping study.

Drilling aimed at converting inferred resources to the indicated status is ongoing with one rig.

In addition, drilling is testing for extensions to lead-silver mineralisation in several key areas where there is potential to add to the resource.

READ: Galena Mining appoints Alex Molyneux as MD as it transitions to base metal producer

Turner said: “Intersecting more economic mineralisation in the northwest sector outside the existing resource has meant additional drill holes have been added to the current program in this area.

“Results are pending for most of these holes.

“We look forward to releasing further results from this drilling program in the coming weeks and the results of the pre-feasibility study in September.”

Economically and technically robust

The scoping study has confirmed Abra as an economically and technically robust opportunity, with the potential to become a significant, long-life, high-margin lead-silver producer.

Abra is about 110 kilometres from Sandfire Resources NL’s (ASX:SFR) high-grade Degrussa copper mine, is well serviced by infrastructure and is about halfway between Mt Newman and Meekatharra.

At a 5.0% lead cut-off, it hosts a 36.6 million tonne resource at 7.3% lead and 18 g/t silver.

Within this is an indicated resource of 13.2 million tonnes at 7.9% lead and 19 g/t silver, and an inferred resource of 23.5 million tonnes at 6.9% lead and 17 g/t silver.

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Thu, 30 Aug 2018 09:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203831/galena-mining-hits-further-high-grade-lead-likely-to-add-to-abra-resource-203831.html
<![CDATA[Media files - Galena Mining on track to begin development of base metals project in 2019 ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10145/galena-mining-on-track-to-begin-development-of-base-metals-project-in-2019-10145.html Thu, 16 Aug 2018 14:55:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10145/galena-mining-on-track-to-begin-development-of-base-metals-project-in-2019-10145.html <![CDATA[News - Galena Mining appoints Alex Molyneux as MD as it transitions to base metal producer ]]> https://www.proactiveinvestors.com.au/companies/news/202249/galena-mining-appoints-alex-molyneux-as-md-as-it-transitions-to-base-metal-producer-202249.html Galena Mining Ltd (ASX:G1A) has appointed Alex Molyneux as managing director and chief executive officer, effective from September 1, 2018.

The appointment is seen by the company as a key element of its strategy to transition towards becoming a major base metals producer.

Outgoing chief executive officer Ed Turner will remain with Galena in the capacity of general manager of geology and exploration.

Galena is developing the Abra Lead-Silver Project in Western Australia, which a recently completed scoping study has confirmed as an economically and technically robust opportunity with potential to become a long-life, high margin base metals mine.

 

Galena non-executive chairman Adrian Byass said he was very excited Molyneux had agreed to join and lead the team.

Byass said: “[Molyneux] has substantial experience in major mine development and has run complex 1,000-plus public mining companies.

“[He] also has extensive relationships within the institutional investor and banking communities and this will be important to develop Abra on the best terms possible which create greater value for existing shareholders.”

READ: Galena Mining intersects more high grade lead and silver at Abra

Molyneux recently completed three years as chief executive officer of Paladin Energy Ltd (ASX:PDN), one of the world’s largest uranium companies.

In his role at Paladin, Molyneux oversaw a US$700 million successful recapitalisation of the company, including raising US$115 million in new capital and a re-listing on the ASX.

Prior to Paladin, Molyneux worked for around 5 years with Ivanhoe Mines Group and Ivanhoe Energy in various leadership capacities, including chief executive officer and director of South Gobi Resources Ltd (TSE:SGQ).

Molyneux thanked Byass, Turner and the board for inviting him to join the team.

He commented: “In my 20-years in mining and mine finance, I have rarely seen a base metal project in a top-tier jurisdiction demonstrate the kind of economics as shown by the Abra scoping study.

“I look forward to being part of the delivery of the upcoming pre-feasibility study results and working with the team to continue their strong forward momentum.”

READ: Galena Mining expects to finish drilling Abra in Western Australia as study nears completion

Molyneux’s engagement terms include the proposed grant of 16.5 million performance rights, which are subject to conditions that align with creation of shareholder value.

Commenting on the incentive package offered to Molyneux, Byass said: “[Molyneux’s] willingness to embrace these significant value-adding milestones as cornerstones to his renumeration package shows the confidence he has in their delivery.”

Galena expects to announce the results of the Abra pre-feasibility study in September.

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Sun, 05 Aug 2018 22:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202249/galena-mining-appoints-alex-molyneux-as-md-as-it-transitions-to-base-metal-producer-202249.html
<![CDATA[News - Galena Mining intersects more high grade lead and silver at Abra ]]> https://www.proactiveinvestors.com.au/companies/news/202060/galena-mining-intersects-more-high-grade-lead-and-silver-at-abra-202060.html Galena Mining Ltd (ASX:G1A) has drilled out further high-grade lead and silver intersections from its Abra Base Metal Project near Meekatharra in Western Australia.

Highlights include 28.3 metres at 8.9% lead and 52 g/t silver and 8.1 metres at 11.2% lead in the same hole.

Drilling aims to convert the current resource from the Inferred category to the Indicated category and is ongoing with two rigs in operation.

Assays remain pending for a further six holes.

READ: Galena Mining expects to finish drilling Abra in Western Australia as study nears completion

Galena’s CEO Ed Turner said: ”These results add further confidence to our resource model and the thicknesses and grades are better than expected in several locations in particular the north west sector which includes mineralisation that is closest to surface and therefore likely to be mined in the first few years of production.

“Every hole completed in 2018 has, like in the 2017 drilling, intersected high-grade mineralisation and will therefore greatly assist with the ore block optimisation that is part of the pre-feasibility study.

“We look forward to releasing further results from this drilling program in the coming weeks and the results of a pre-feasibility study. This study will be completed in September 2018.”

READ: Galena Mining buoyed by positive economics in Abra Base Metals Project scoping study

Galena released the results for its scoping study at Abra in late June which demonstrated a strong economic case for the project’s development.

Galena plans to quickly advance the Abra project through to the pre-feasibility stage in September 2018 and then to feasibility in 2019.

To support these studies, Galena is currently drilling an 8,400-metre resource development drilling program aimed to convert the bulk of the high-grade portions to the Indicated category.

In addition, drilling will test for extensions to lead and silver mineralisation in several key areas.

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Thu, 02 Aug 2018 12:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202060/galena-mining-intersects-more-high-grade-lead-and-silver-at-abra-202060.html
<![CDATA[News - Galena Mining expects to finish drilling Abra in Western Australia as study nears completion ]]> https://www.proactiveinvestors.com.au/companies/news/201690/galena-mining-expects-to-finish-drilling-abra-in-western-australia-as-study-nears-completion-201690.html Galena Mining Ltd (ASX:G1A) expects to complete a drilling program at its Western Australian Abra Base Metals Project early next month as the company moves to complete a pre-feasibility study (PFS) in September.

The company used its latest quarterly activities report to highlight the economics of the Gascoyne region project for which a scoping study gave a $394 million net present value (NPV) and 61% internal rate of return.

Abra’s estimated NPV was based on a 10% discount rate and US$0.95 a pound price.

READ: Galena Mining crosses a milestone towards Abra Base Metals Project development

Galena’s scoping study also estimated capital expenditure of $153 million for an initial 11-year mine life where costs were paid back at 18 months.

Annual processing capacity was estimated at 1 million tonnes, with average lead metal production coming in at 91,000 tonnes and average silver metal production at 450,000 ounces.

The company reported: “There remains considerable exploration potential for additional lead-silver mineralisation already identified to be converted to JORC resource with additional drilling.

“The deposit is also zoned with significant copper-gold intercepts at depth.”

 

Galena said infill drilling was expected to help upgrade its inferred resources to indicated so they could be factored into PFS production planning.

The highest graded lead intersection at the project was 15.4 metres at 25.9% lead and 74 g/t silver from 519.1 metres at the Apron deposit.

The highest graded gold intersect was 8 metres at 9.5 g/t gold, 1.4% lead, 0.6% copper and 77 g/t silver from 706 metres.

READ: Galena Mining buoyed by positive economics in Abra base metals project scoping study

Abra is in WA near two gazetted Shire of Meekatharra roads — the Ashburton-Meekatharra and Tangadee roads — which the company expects will contribute cost-savings to its logistics bill.

Galena also used its activities report to flag it was funded to complete the PFS next month and a follow-on definitive feasibility study next year.

The company hopes to mine first material at the site in the January quarter of 2021 and also process the material at its own plant.

Assays are pending for 1,114 metres from two diamond core holes in the 46-40 and Leader 18 prospect at its Woodlands lead-copper property, west of Abra.

It said: “These mineralised zones are interpreted as being part of the same mineralised system previously intersected in historic drilling, however, Galena’s intercepts are several hundred metres from the historical intersections.

“The system has therefore been significantly extended with this drilling.”

READ: Galena Mining adds gold to the mix at its world-class Abra lead-silver project

Among the most significant prior assays for the 46-40 prospect at Woodlands were: 20.7 metres at 1.10% lead from 214.3 metres, including 4.3 metres at 2.3% lead; and 22.5 metres 0.52% copper from 523.5 metres.

Galena spent $1.86 million on exploration and evaluation activities in the June quarter and brought in $9 million from share issues.

The company ended the quarter with a cash position of $8.53 million.

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Fri, 27 Jul 2018 08:42:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201690/galena-mining-expects-to-finish-drilling-abra-in-western-australia-as-study-nears-completion-201690.html
<![CDATA[News - Galena Mining crosses a milestone towards Abra Base Metal Project development ]]> https://www.proactiveinvestors.com.au/companies/news/201276/galena-mining-crosses-a-milestone-towards-abra-base-metal-project-development-201276.html Galena Mining Ltd (ASX:G1A) has been granted a general purpose (GP) lease for all of the planned mine processing facilities and supporting infrastructure for its Abra Base Metal Project in Western Australia.

Galena is currently undertaking a pre-feasibility study (PFS) that is investigating the economic viability of the Abra lead-silver-copper-gold deposit in the Gascoyne region.

READ: Galena Mining adds gold to the mix at its world-class Abra Lead-Silver Project

Galena chief executive officer Ed Turner said: ”The granting of our GP lease is significant in that it provides security over the area adjoining the granted mining lease, which contains the Abra Deposit, and enables us to expedite planning towards production.

“The PFS is on track towards completion in September”.

Process engineering is a significant component of the PFS and having a permitted area for the associated infrastructure further de-risks the project.

Galena continues work towards bringing its world-class base metal project into development in 2019.

A critical component of the project development is the location of the site processing infrastructure, as well as associated infrastructure such as administration, mine camp and airstrip, and the granting of the GP is a significant step given it will include all of these facilities.

The opportunity to locate these facilities immediately adjacent to the mining operation offers significant efficiencies and savings.

The proximity to gazetted Shire of Meekatharra roads (Ashburton – Meekatharra and Tangadee Roads) is also a significant benefit and cost saving on logistics.

READ: Galena Mining projected to have one of world’s largest lead mines

Other PFS components are well advanced and on track for completion in September 2018.

These include mining studies covering scheduling, production ramp-up and rates as well as the ongoing infill drilling.

The infill drilling continues with the aim of converting additional tonnes of inferred resources to indicated resources.

To date, an additional 10 holes for 5,863 metres have been completed out of 15 planned holes. Assay results for these holes will be released in the coming months as will an updated resource estimate.

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Mon, 23 Jul 2018 11:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201276/galena-mining-crosses-a-milestone-towards-abra-base-metal-project-development-201276.html
<![CDATA[News - Galena Mining adds gold to the mix at its world-class Abra Lead-Silver Project ]]> https://www.proactiveinvestors.com.au/companies/news/200321/galena-mining-adds-gold-to-the-mix-at-its-world-class-abra-lead-silver-project-200321.html Galena Mining Ltd (ASX:G1A) has added value to its impressive lead and silver strategy at the Abra project in Western Australia with high-grade gold results from recent drilling.

An 8-metre intersection from 706 metres that assayed 9.5 g/t gold, 1.4% lead, 0.6% copper and 77 g/t silver is the highest grade gold intersection drilled at the project to date.

READ: Galena Mining projected to have one of world’s largest lead mines

This mineralisation is outside the Abra JORC resource of 36.6 million tonnes 7.3% lead and 18 g/t silver at a 5% lead cut-off and highlights the exciting future potential.

Also providing further encouragement was the highest grade lead intersection from the Apron Zone to date of 15.4 metres at 25.9% lead and 74 g/t silver from 519.1 metres.

Also within this hole, AB83, was 7.7 metres at 41.7% lead and 116 g/t silver.

 

Galena CEO Ed Turner said: ”We are extremely pleased with these results as they continue to support our geological and resource model for the Abra deposit which drives our optimisations.

“The exceptional high-grade lead-silver and gold-copper mineralisation intersected in AB83 provides further encouragement as, like AB82, was in areas designated as inferred in the JORC resource.

“Significant high-grade gold intercepted was unexpected and adds support to further investigating an increasingly interesting copper-gold story at depth below the base of the current JORC resource.”

The latest results are from an infill drilling program designed to increase confidence in parts of the resource within the pre-feasibility study that commenced in late May.

READ: Galena Mining buoyed by positive economics in Abra Base Metals Project scoping study

This 8,400-metre program is based on underground optimisation work included in a scoping study released last month.

It is designed to convert inferred resources to indicated resources and support Galena’s ongoing study work.

In addition, drilling will test for extensions to lead-silver mineralisation in several key areas where there is potential to add to the resource.

Apron Zone is primary target

Drilling is primarily targeting the stratiform Apron Zone, which is the most laterally continuous mineralisation and will be the focus of early stage underground development.

The 1AB83 15.4-metre intersection is not only within inferred rather than indicated material but is also outside current planned stopes.

This hole also intersected 5.76 metres at 9.6% lead and 29 g/t silver from a hydrothermal vein zone within the underlying Core Zone.

Hole AB82 returned 4.2 metres at 8.1% lead and 14 g/t silver from the Apron Zone and this intersection is within the current inferred material.

Very high-grade stratiform lead-silver mineralisation from core in AB83.

Assays pending for six holes

Assays are pending for six additional holes and Galena anticipates further highly encouraging results.

Two drill rigs are on site with the program expected be completed in early August.

Turner said: “We look forward to releasing further results from this drilling program in coming weeks and the results of a pre-feasibility study for which we are fully funded.

“This study will be completed in the current quarter.”

Technically robust opportunity

The scoping study confirmed Abra as an economically and technically robust opportunity, with the potential to become a significant, long-life, high-margin West Australian lead-silver producer.

Galena plans to quickly advance the project through to the pre-feasibility stage in September 2018 and then to feasibility in 2019.

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Mon, 09 Jul 2018 12:21:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200321/galena-mining-adds-gold-to-the-mix-at-its-world-class-abra-lead-silver-project-200321.html
<![CDATA[News - Galena Mining appoints experienced metals marketing consultant ]]> https://www.proactiveinvestors.com.au/companies/news/200155/galena-mining-appoints-experienced-metals-marketing-consultant-200155.html Galena Mining Ltd (ASX:G1A) has appointed Bill Cunningham as a metals marketing consultant with immediate effect.

The appointment is part of Galena’s expansion of key technical and management positions to advance the 100%-owned Abra Base Metals Project in Western Australia.

Cunningham has worked in marketing and sales within CRA (Rio Tinto), WMC, Jubilee Mines, Western Areas Ltd (ASX:WSA), Lion Ore, Sandfire Resources NL (ASX:SFR) and Independence Group NL (ASX:IGO).

Most recently, he worked on Sandfire's DeGrussa mine (2011-12) followed by Independence's Nova-Bollinger mine (2013-14). 

READ: Galena Mining projected to have one of world’s largest lead mines

Galena’s CEO Ed Turner said: ”This is a key part of Galena’s drive to bring Abra in to production as soon as possible.

“The test work to date has shown that Abra can produce an outstanding, high-grade, very clean lead-silver concentrate that will be in high demand from global users.

“Bill Cunningham, through his recent experience in major WA underground base metal operations offtake, will be highly valuable to us.”

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Thu, 05 Jul 2018 12:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200155/galena-mining-appoints-experienced-metals-marketing-consultant-200155.html
<![CDATA[News - Galena Mining projected to have one of world’s largest lead mines ]]> https://www.proactiveinvestors.com.au/companies/news/199987/galena-mining-projected-to-have-one-of-worlds-largest-lead-mines-199987.html Galena Mining Ltd (ASX:G1A) has confirmed in a recent scoping study that its 100%-owned Abra Base Metals Project in Western Australia is globally significant.

It is projected to be the fifth or sixth largest lead mine in the world with a base case pre-tax post royalties NPV10 of $394 million.

READ: Galena Mining buoyed by positive economics in Abra Base Metals Project scoping study

Galena has an aggressive timeline to start construction at Abra in the September quarter 2019 with planned extraction of first mineralisation in the March quarter of 2021.

As per the timeline, the pre-feasibility study (PFS) is due September 2018 followed by the feasibility study in mid-2019.

The recent scoping study confirmed Abra as an economically and technically robust opportunity, with potential to become a significant, long-life, high margin lead-silver producer.

Considerable exploration potential also exists for additional lead-silver mineralisation to be converted to JORC resource with additional drilling.

 

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Tue, 03 Jul 2018 10:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199987/galena-mining-projected-to-have-one-of-worlds-largest-lead-mines-199987.html
<![CDATA[Media files - Galena Mining's Abra Project has 'one of the highest-grade concentrates in the world' ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9753/galena-mining-s-abra-project-has-one-of-the-highest-grade-concentrates-in-the-world--9753.html Mon, 02 Jul 2018 18:55:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9753/galena-mining-s-abra-project-has-one-of-the-highest-grade-concentrates-in-the-world--9753.html <![CDATA[News - Galena Mining buoyed by positive economics in Abra Base Metals Project scoping study ]]> https://www.proactiveinvestors.com.au/companies/news/199739/galena-mining-buoyed-by-positive-economics-in-abra-base-metals-project-scoping-study-199739.html Galena Mining Ltd (ASX:G1A) has completed a scoping study which indicates strong positive economics for the Abra Base Metals Project in Western Australia.

The study confirms Abra as an economically and technically robust opportunity, with potential to become a significant, long-life, high margin lead-silver producer.

Considerable exploration potential also exists for additional lead-silver mineralisation to be converted to JORC resource with additional drilling.

READ: Galena Mining's shares spike on confirmation of world-class lead-silver resource at Abra

Galena’s chief executive officer Ed Turner said: “This scoping study has confirmed the economic viability of the Abra project.

“It has increased our confidence in the real potential of the project as a near-term Western Australian development opportunity.

“This is an exciting long-life, high margin and low capital project in a tier-1 jurisdiction.

“Abra’s latest representative metallurgical test work demonstrates that it can produce a very high grade (74.5% lead and 140 g/t silver), high-quality clean concentrate that is in high demand.”

 

Potential upside

Galena’s shares were up 12% to 19 cents in morning trade and there is plenty of upside potential with impending news flow in the remainder of 2018.

At its full production rate, Abra is projected to be fifth or sixth largest lead producer in the world.

The scoping study is based on new work undertaken by Galena and its study team, comprising internal personnel and industry expert external independent consultants.

It relates to underground mining, ore processing, mine site infrastructure, environmental permitting, logistics and marketing.

The study is also underpinned by the extensive historical technical database that has been acquired by Galena.

Scoping study outcomes

Among the outcomes are:

- Base case pre-tax post royalties NPV10 of $394 million and IRR of 61%, based on a long-term lead price of US$0.95/pound, silver price of US$16.50/ounce and USD:AUD exchange rate of $0.75;

- Spot case pre-tax post royalties NPV10 of $615 million and IRR of 82% (based on spot Pb price of US$1.14/lb, silver (Ag) price of US$16.50/oz and USD: AUD of $0.75);

- Initial mine life of 11 years, with opportunities identified to extend beyond 11 years;

- Annual throughput of 1 million tonnes, with average grades of 9.7% lead and 15 g/t silver, producing 91,000 tonnes of lead and 450,000 ounces of silver;

- Average life of mine cash (C1) costs of US$0.46/pound and total costs (C3) costs of US$0.56/pound (includes all royalties) – high margin, strongly cash generative operation;

- Average LOM revenues estimate of $251 million and operating cash flows of $104 million per year (Base Case); and

- Pre-production CAPEX estimated to be $153 million with a payback period of about 18 months.

Strong lead outlook

Potential development of Abra coincides with a strong outlook for lead.

Increasing demand and reducing supply has produced an average spot lead price of US$0.97 per pound over the last 10 years.

Given the strength of the scoping study, Galena is progressing into the next phase of work at Abra across multiple fronts and at a maximum pace.

Galena owns 100% of the base metals project, which is in the Gascoyne region of Western Australia.

It was discovered in the late 1970s and has been the subject of an extensive historical exploration and preliminary level economic studies.

There has been no previous mining activity and the deposit does not outcrop.

Focus on high-grade mineralisation

The proposed throughput rate allows mining to focus on high-grade lead-silver mineralisation.

This rate is based on mining studies performed on the latest JORC resource estimate.

The mineable material that is the basis of the study compromises 9.2 million tonnes at a grade of 9.7% lead and 15 g/t silver for a contained 842,500 tonnes of lead and 4.2 million ounces of silver.

About 51% of the mineable material is in the indicated category with the first two years of production in this category.

This ensures 100% of the payback period of less than 1.5 years of production is mining solely indicated resources.

Mining method

The planned mining method comprises an underground mine accessed by a decline.

Initial material is expected to be mined during quarter one of 2021.

Underground extraction will be mostly by sublevel open stoping mining and partly by room and pillar mining.

These methods, together with paste filling high-value stopes, will enable maximum extraction of the ore body.

Underground material will be trucked to the surface via the access decline.

Processing method

Processing will comprise conventional crushing, grinding and two stages of conventional flotation and filtration to produce a lead (plus silver) concentrate.

The construction cost of the facility is estimated at $66 million including $6 million of contingency costs.

Construction is scheduled to begin during the second quarter of 2020, with a 15-month time frame for commissioning.

Near-term schedule

The next steps for Galena’s Abra project include:

- Completing the pre-feasibility study in September 2018;

- Additional infill drilling to convert more inferred resource material to the higher confidence indicated classification in late 2018; and

- Completing the marketing exercise with potential buyers, including smelters and traders, to obtain contract terms for Abra’s lead concentrate.

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Thu, 28 Jun 2018 12:56:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199739/galena-mining-buoyed-by-positive-economics-in-abra-base-metals-project-scoping-study-199739.html
<![CDATA[Media files - "Smelters will be lining up to try and buy the product" says Galena Mining's CEO ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9239/-smelters-will-be-lining-up-to-try-and-buy-the-product-says-galena-mining-s-ceo-9239.html Wed, 09 May 2018 17:18:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9239/-smelters-will-be-lining-up-to-try-and-buy-the-product-says-galena-mining-s-ceo-9239.html <![CDATA[News - Galena Mining's shares spike 30% on confirmation of world-class lead-silver resource at Abra ]]> https://www.proactiveinvestors.com.au/companies/news/193122/galena-mining-s-shares-spike-30-on-confirmation-of-world-class-lead-silver-resource-at-abra-193122.html Galena Mining Ltd’s (ASX:G1A) shares surged about 30% after the company confirmed a new world-class resource at its 100%-owned Abra Lead-Silver Project.

The Abra project in the Gascoyne region of Western Australia features an overall resource of 36.6 million tonnes at 7.3% lead and 18 g/t silver.

Within that resource, Galena has identified a high-grade indicated and inferred section featuring 11.2 million tonnes at 10.1% lead and 28 g/t silver.

Resource exceeds management’s expectations

The establishment of the resource follows a successful drilling program completed in December which covered more than 8,000 metres.

While the resource metrics surprised on the upside, the project could still grow in size.

Chief executive officer Ed Turner said: “These resource numbers have exceeded our expectations and confirm Abra as a truly world-class asset with global significance in the lead market.

“What is even more exciting is that this looks like just the beginning of a much bigger project and that potential upside exists in and around where we have drilled to date.”

Prefeasibility study the next catalyst

Galena’s plan has always been to target the proven high-grade mineralisation at Abra with a view to establishing a high-grade/low-cost development strategy.

The company now has the capacity to deliver on this strategy.

Management aims to bring Abra on line as one of Australia’s next base metals producers, and its focus is now on progressing a prefeasibility study over the coming months.

Hartleys bullish on Galena

Analysts at Hartleys initiated coverage of Galena in January with a buy recommendation and a price target of $1.58.

READ: Galena Mining lead-silver project in Gascoyne region draws attention from Hartleys

At that stage, the company's shares were trading at about $1.25, but subsequently retraced as volatility in global markets and commodity prices brought downward pressure.

However, with the share price returning to January levels of about $1.20 today, Hartleys’ price target appears achievable.

It is also worth noting that the broker based its price target at that time on drilling results alone.

Hartleys will now crunch the numbers based on an established resource which could see an upgrade in valuation.

Production scenario

Based on previous test work in 2008, management believes that lead and silver sulphide mineralisation could be economically extracted using conventional flotation methods.

Preliminary metallurgical test work at that time was encouraging, indicating that a float recovery of 95% is achievable for lead in the lead domain.

Tests also indicated that a concentrate grade of approximately 55% to 65% lead is achievable.

Galena will be in a better position to assess its production options after laboratory examination of recent samples has been completed.

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Wed, 14 Mar 2018 14:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193122/galena-mining-s-shares-spike-30-on-confirmation-of-world-class-lead-silver-resource-at-abra-193122.html
<![CDATA[News - Galena Mining lead-silver project in Gascoyne region draws attention from Hartleys ]]> https://www.proactiveinvestors.com.au/companies/news/190347/galena-mining-lead-silver-project-in-gascoyne-region-draws-attention-from-hartleys-190347.html Galena Mining Ltd (ASX:G1A) only listed on the ASX in September last year, but the prospective lead-silver play has been well sought after by investors.

As the company has moved to develop the Abra lead-silver deposit in the Gascoyne region its shares have shot from the IPO price of $0.20 to hit a high of $1.25 last week.

However, analysts at Hartleys believe there is upside to its current trading range, initiating coverage with a speculative buy recommendation and a price target of $1.58.

The broker also made the point that its fully diluted price target was based on a preliminary valuation of $1.76 and more conservative commodity prices going forward.

Galena identifies broad sections of mineralisation within the Abra deposit

In the course of completing a 12 hole, 8 kilometre diamond drill program at Abra, Galena intercepted some high grade mineralisation.

This included 53.3 metres at 10.8% lead and 20 g/t silver from 521 metres.

There were two other hits of circa 60 metres, grading 10.6% lead and 7.8% lead from circa 400 metres.

The most recent resource estimate was released in 2008, being a non-JORC resource of 93 million tonnes at 4% lead and 10 g/t silver.

Hartleys crunches numbers on potential 1 million tonnes per annum underground operation

Hartleys has based its project modelling on a 1 million tonnes per annum underground operation with all in sustaining costs (AISC) of $0.75 per pound.

The broker’s estimates are based on a 9 year mine life, producing 88,000 tonnes per annum of lead and 391,000 ounces per annum of silver from circa 2021.

However, the most significant hurdle would be financing of the project which Hartleys estimates would be in the vicinity of $180 million based on comparable Australian operations.

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Mon, 22 Jan 2018 15:19:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190347/galena-mining-lead-silver-project-in-gascoyne-region-draws-attention-from-hartleys-190347.html