Abra Cash Flow Positive

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) advises that in July Abra achieved its first positive monthly cash flows as it continues to ramp-up to steady state production. Subject to end of month reconciliation the following has been achieved in July:

• Concentrate shipment of 9,254t generating approximately A$17.0 million revenue.
• Processing plant milled over 105kt.
• New mining monthly records with total ore and waste 144kt (high grade ore 100kt including 70kt from stope production).
• Mining and processing plans reaffirmed for remainder of 2023, with September quarter set to generate between 25-30kt concentrate for estimated A$50-60 million revenue and positive operating cash flows.

Managing Director, Tony James commented, “Abra has always had a target of reaching positive cash flows in the second half of 2023 following commissioning and ramp-up in the first six months of the year. Looking forward at our mining and processing plans for the remainder of 2023 we have over 90% of the ore planned to be mined drilled out to a 12m x 12m spacing.”

Figure 1 – Underground trucks hauling ore out of Abra decline (Photo 13 July 2023).

Ramp-up and infrastructure installation continued during the month. The installation of the second primary ventilation fans (Figure 2) is in line with project planning and will service the expanding underground production profile and increasing work areas.

Figure 2 – Successful installation of the second primary ventilation fan at Abra during July on the mine’s primary 6m diameter exhaust rise (Photo 25 July 2023).

As infrastructure has been put in place to allow expansion of ore production, underground contractor Byrnecut have mobilised additional equipment and manning resources to planned levels to achieve steady state production. Areas currently being accessed, and future plans are shown in Figures 3,4,5 below.

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