First production from the Australian lead-silver mine is targeted for Q1 2023
Galena Mining said that it has taken the final investment decision (FID) to complete the full development of the Abra Base Metals Project in Western Australia.
First production of lead-silver concentrate from the mine is expected to be achieved in Q1 2023.
The underground decline development at the lead-silver project is expected to begin in Q3 2021, while construction on the on-site plant is slated to start in the fourth quarter of this year.
As of 31 May 2021, the Abra Base Metals Project is 17% complete, based on AUD27.4m ($21.07m) of works carried out prior to the FID.
Galena Mining said that the FID taken by Abra Mining (AMPL), the joint-venture company for the project, was after satisfying key conditions to draw over $30m under the debt facilities provided by Taurus Funds Management.
The rest of the project development works are financed by more than AUD200m ($153.83m) of funds sourced from $110m of Taurus debt facilities, AUD40m ($30.77m) final equity investment tranche in Abra Mining from Toho Zinc, and Galena Mining’s existing cash resources of AUD20m ($15.38m) as of 31 May 2021.
Galena Mining managing director Alex Molyneux said: “Galena is now poised to join the ranks of high margin Australian producers, benefitting from buoyant base metals markets.
“I’d particularly like to thank our hard-working team who have achieved so many project milestones to get to this point and will soon be joined by approximately 260 more colleagues over the construction phase.”
The Abra Base Metals Project is located in the Gascoyne region, about 110km from Sandfire’s DeGrussa Project. It is 77.28% owned by Galena Mining.
A definitive/bankable feasibility study undertaken by Galena Mining calls for the development of an underground lead-silver mine and processing facility with a 16-year life. The project is estimated to produce lead-silver concentrate containing nearly 95kt of lead and 805koz of silver per year following its ramp-up.
Its key contracts include an engineering, procurement, and construction contract, which was executed with GR Engineering Services for the supply of 1.2 million tonne per annum lead sulphide flotation process plant and ancillary infrastructure.
The underground mining services contract was given to a tier one Australia-based mining contractor.