The study estimated Abra would produce 95,000 tonnes of lead and 805,000 ounces of silver per year for 1.24 million tonnes of lead and 10.6 million ounces of silver over the life-of-mine.
Capex estimates total $169.6 million with a construction period of 15 months and the lead C1 direct cash cost of production is forecast to be US$0.44 per pound.
Compared to the 2018 PFS, mine life has increased by two years, as has lead and silver production, and operating costs have decreased with capex increased.
Galena’s managing director Alex Molyneux said: “I’m very pleased that Abra has now completed FS-level technical and engineering work, with the project continuing to demonstrate sector-leading financial returns with a pre-tax NPV of A$553 million.
He added: “It’s also important to have completed the study on time given that it is a milestone to moving through the final phase of the project financing debt process, which is well underway.”
The study outcomes provide confirmation of technical feasibility with low risk and strong projected economic returns for the development of Abra.
The development being a combined underground mine and conventional processing facility (flotation concentrator).
This proposed operation will produce a high-value, high-grade lead-silver concentrate.
Targeting initial production in 2021
Galena continues to target initial production for Abra in 2021 and the first full year of steady state commercial production in 2022.
Project work is now focused on moving to the construction phase including finalising offtake agreements, project debt financing, development work, and updating the JORC resource and reserve.
The Abra Ore Reserve will be reviewed in conjunction with an upcoming update of the JORC resource estimate following completion of the ongoing 2019 project development drilling program.