Abra Initial Production Guidance

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

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.

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