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Galena Mining Ltd

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

The Abra project holds a 14-year mine life with 1.2 million tonnes a year throughput for a total of 15.3 million tonnes.

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Abra is in the Gascoyne region of WA, about 110 kilometres from Sandfire Resources’ DeGrussa Mine

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.

Quick facts: Galena Mining Ltd

Price: $0.35

Market: ASX
Market Cap: $129.59 m
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Galena Mining moves Abra Base Metals Project into development phase after...

Galena Mining Ltd (ASX:G1A) managing director Alexander Molyneux updates Proactive Investors on the company’s development work at its Abra Base Metals Project in Western Australia.   Molyneux said the definitive feasibility study for the lead and silver project was on track for...

on 2/5/19

2 min read