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.
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).
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.