The Conversation (0)
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to provide initial production guidance for its 60% owned Abra Base Metals Mine (“Abra” or the “Project”) having achieved the construction milestone of 75% complete. The guidance for the CY2023 ramp-up year and future life of mine averages are based on the most recently updated mine plan incorporating updated mine designs and the latest cost information.
HIGHLIGHTS
- Abra Project construction is now 75% complete – Galena confirms first concentrate production remains on-target for Q1 2023 and provides initial production targets based on latest mine plan
- CY2023 mill throughput expected to be 0.8-1.0Mtpa resulting in ramp-up year lead production of 53-68kt
- Following ramp-up, life of mine average annual production expected to average 93,000 tonnes of lead and 553,000 ounces of silver, with lead ‘C1’ direct cash cost of US$0.50/lb
- Plant processing throughput and mine plan increased to 1.3Mtpa in the current mine plan (vs. 1.2Mtpa in 2019 Feasibility Study)1
Managing Director, Tony James commented, “With first concentrate production on target for the March 2023 quarter, we provide this update on near-term and life of mine plan and targets. During the construction period of the project, we have worked very closely with our partner Toho Zinc and our key service providers to reach the 75% build mark. For the remainder of 2022 we plan to safely complete the mine construction and commission Abra as a world-class lead-silver mine.”
The guidance provided today is based on the knowledge and confidence gained from additional drilling, Mineral Resource estimation, and advancing construction at Abra, and preparation for commissioning ahead of a planned safe and efficient start-up.
Grade control drilling commenced in June 2022 and ongoing drilling and evaluation over the next 3 months will likely offer further opportunity for additional optimisation of the mine plan.
The forecast life of mine production now averages 93,000tpa lead metal production and 553,000ozpa silver. An 8% increase in mine and mill production is offset by a 6% reduction in lead grade to produce slightly less metal in direct comparison to the 2019 Feasibility Study (“FS”)1. A suitable ramp up profile has been adopted for the CY2023 prior to reaching steady state production which is anticipated to occur in the December quarter 2023.
Table 1 below outlines the current expected production forecast for CY2023 and the Updated Life of Mine outcomes in direct comparison the FS completed in 2019.
Table Notes
1. Key outcomes and metrics shown reference 100% of Project. Abra Project is owned 60% by Galena & 40% by Toho Zinc.
2. Includes a by-product credit for net silver revenue of US$0.04/lb (A$0.06/lb).
3. Current lead metal price and exchange rate.
Table 1 - Updated Abra key operating and financial metrics.
The Abra mine construction is progressing as planned. Progress reached 73% complete as of 30 June 2022 and has since past 75% complete. Processing plant construction activities reached 79% complete with concrete civils passing 95% complete and structural steel passing 42% complete. During June and early July several key equipment items arrived on site and the only remaining items coming from overseas are the flotation cells and the regrind mill. These items are currently in shipping with the flotation cells expected to arrive on 12 August and the regrind mill expected to arrive on 1 September. Figures 1 to 4 included in this announcement provide additional photographs of the Abra work completed to date.
Click here for the full ASX Release
This article includes content from GALENA MINING LTD., licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
G1A:AU
Abra Construction At 97% Complete – First Ore Stockpiled For January Processing
Managing Director, Tony James commented, “Record underground development in November with delivery of the first 9,000t of ore to the ROM pad along with successful plant commissioning to date puts Abra on the verge of a quick transition into production. Recruitment and other operational readiness activities are well advanced in preparation for January production”.
Figure 1 – First material being tipped into the crusher during commissioning (Photo 26 November).
Figure 2 – Crushing and screening plant commissioning (Photo 26 November).
The following link will show a short video of the Abra crusher commissioning. https://youtube.com/shorts/iSG58MiW_3o
Update on Abra Project progress
Overall progress continues as planned, with first concentrate production expected in Q1 CY2023, following ore commissioning in January 2023. Practical completion of the processing plant is now expected ahead of schedule in December 2022. The processing plant engineering, procurement and construction has reached 99% complete. Piping and electrical works have made significant progress and at the end of November were 96% and 92% complete, respectively. Mechanical items installation is almost complete at 99%.
In November, the first material was crushed and screened as part of the staged commissioning process. The crushing plant ran at design capacity and all commissioning milestones were successfully achieved. Dry commissioning also progressed in most areas of the plant including water and air services, tailings and concentrate thickening, grinding and reagents. Dry commissioning of the remaining areas will be completed in December. Water commissioning commenced in the tailings and concentrate thickening areas of the plant and the remaining areas are expected to be wet commissioned by the end of December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Silver Price Surges to US$37, Highest Value Since May 2011
The central bank has held its benchmark rate at 4.25 to 4.5 percent since November 2024.
Silver price, June 10 to June 17, 2025.
Chart via the Investing News Network.
CME Group's (NASDAQ:CME) FedWatch tool shows more than half of market respondents predict a 0.25 percent cut at the Fed's September meeting, while just 8 percent are expecting the Fed to make a deeper 0.5 percent cut.
The central bank is widely expected to leave rates unchanged at its June and July meetings.
Silver's price surge also comes amid escalating tensions between Israel and Iran. The two countries have come closer to war in recent days, with Israel striking nuclear and military targets deep in Iran.
On Monday (June 16), US President Trump took to Truth Social to urge a complete evacuation of Tehran ahead of planned strikes on targets in the city. He also urged Iran to abandon its nuclear ambitions.
On the economic front, the US Bureau of Labor Statistics released its May consumer price index figures on June 11. The data shows inflationary growth, with the all-items index ticking up to 2.4 percent from 2.3 percent in June.
Growth was tempered mainly by falling prices at the pumps. Additionally, retail prices have yet to feel the full impact of US tariffs as retailers continue to work through stockpiles acquired earlier in the year.
Elsewhere, gold and equity markets weren’t faring as well on Tuesday.
Gold was flat, trading at US$3,385 per ounce. It has surged more than 25 percent this year, setting a slew of new price records, and has continued to trade in elevated territory, fueled by the same conditions as silver’s recent run. However, silver benefits from a lower entry point for investors looking for more affordable safe-haven investments.
The S&P 500 (INDEXSP: INX) was down on Tuesday, recording a 0.78 percent decline to 5,986. The Nasdaq-100 (INDEXNASDAQ: NDX) was also down, falling 0.89 percent to 21,744, and the Dow Jones Industrial Average (INDEXDJX: .DJI) slipped 0.68 percent to 42,222.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.