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Galena Mining Ltd. (“Galena” or the “Company”) (ASX:G1A) announces achievement of the key objectives from the 2020 Abra Drilling Program and has subsequently completed an updated JORC Code 2012 Mineral Resource estimate (“April 2021 Resource”) for the Abra Base Metals Project (“Abra” or the “Project”) located in the Gascoyne region of Western Australia. The April 2021 Resource has been independently prepared by Optiro Pty Ltd (“Optiro”).
Managing Director, Alex Molyneux commented, “The objectives associated with the 2020 Abra Drilling Program were successfully completed. The Project now has over 100 kilometres of drilling in its database, and the geological confidence and understanding of the deposit continues to improve. Almost all of the new holes were drilled within the previous Mineral Resource envelope and over 75% of those holes achieved expected or better results. This Mineral Resource update will now feed into an optimised mine plan, and mine development will allow for underground drilling to continue Resource development, particularly the conversion of significant Inferred Mineral Resources associated with the Core Zone
mineralisation, which remains open in several directions and also hosts the interpreted copper-gold zone.”
Table 1 (below) states the Abra April 2021 Resource at a 5.0% lead cut-off grade.
2020 ABRA DRILLING PROGRAM AND OBJECTIVES
The completed 2020 Abra Drilling program included 57 drill-holes totalling 24,834 cumulative linear meters and was designed to achieve three specific objectives. These objectives were mainly focussed on the original Mineral Resource estimate and potential grade and continuity risk
of certain areas within that estimate, and they were:
(i) Lead-silver orebody infill drilling – Some infill drilling that had previously been planned to take place from underground once the decline was in place was pulled forward into the 2020 Abra Drilling Program. This aimed to further tighten the drill-hole spacing over the first four years of proposed production to 20 by 20 metres and up to 30 by 30 metres or better, compared with a more variable drilling density of up to 40 by 40 metres and up to 60 by 60 metres in that area previously.
(ii) Drilling into selected lead-silver ‘metal rich’ zones – Some drill-holes successfully targeted selected areas within the Abra lead-silver mineralisation where higher concentrations of metal (in both grade and thickness) were projected from previous drilling campaigns, in particular drill-hole AB147, which became the best high-grade lead-silver drill-hole ever at Abra, and the follow-up drill-holes that were added to the program in its vicinity (see Galena ASX announcements of 19 October 2020, 18 November 2020, 22 January 2021 and 24 February 2021).
(iii) Gold-copper exploration – Some of the drilling, in particular drill-hole AB195 (see Galena ASX announcement of 22 February 2021) successfully targeted the newly interpreted gold and copper drilling targets to the south and south east of the leadsilver mineralisation and at depth (see Galena ASX announcement of 29 June 2020).
The first two of these objectives enable the Company to optimise mine planning, which is now underway.
MINERAL RESOURCES
Geological model
Abra is located in the Gascoyne region of Western Australia within clastic and carbonate sediments of the Proterozoic Edmund Group. Abra is a base metals replacement-style deposit, where the primary economic metal is lead. Silver, copper, zinc and gold are also present within
the established lead mineralised zones but are of lower tenor.
Abra can be divided into two main parts, the upper “Apron Zone” and lower “Core Zone”.
The Apron Zone comprises stratiform massive and disseminated lead sulphide (galena), with minor copper sulphide (chalcopyrite) and zinc sulphide (sphalerite) mineralisation within the lower conglomerate unit (KCLC) of the Edmund Basin Kiangi Creek Formation and the Upper
Carbonate Unit (UID) of the Irregully Formation. The Apron Zone is characterised by flat-lying alteration zones containing jaspilite (Red Zone), barite (Barite Zone), silica-sericite (Micrite Zone), siderite and dolomite (Carbonate Zone), and haematite and magnetite (Black Zone). Distinct stratiform alteration domains can be defined within the Apron Zone and have assisted in the definition of the distribution of the lead mineralisation and construction of the lead mineralisation lodes. The Apron Zone extends for over 1,200 metres along strike and 750 metres down dip, dipping gently south.
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.
Lead Price Forecast: Top Trends for Lead in 2025
As 2025 approaches, the Investing News Network (INN) is looking back at the main trends in the lead space in 2024 and what’s ahead for prices, supply and demand in the new year.
How did lead perform in 2024?
Although the lead price started off the year above the US$2,025 per metric ton level, it quickly shot up nearly 8 percent in the first four weeks of 2024 on reduced primary and secondary supply. By the end of March, lead had shed those gains and then some, sliding down to US$1,963, only to rise to a high for the year of US$2,343 on May 28.
“China retained the spotlight in 2024. Stricter emission standards for battery makers since April tightened supply for lead, causing China to become a net importer of refined lead for the first time in years, boosting prices,” Adrià Solanes, associate economist at FocusEconomics, told INN via email.
A December report from the International Lead and Zinc Study Group (ILZSG) shows that China, which is both the world’s largest producer and consumer of the metal, increased its imports of lead concentrate by 7.5 percent compared to the first 10 months of 2023. In total, the Asian nation brought in 590,000 metric tons for the period.
By August 5, the lead price had once again crashed, this time by more than 17 percent, to hit its lowest point of the year at US$1,930. For much of the rest of the year, volatility continued to plague the lead market, with price ups and downs causing the base metal to swing within the US$1,950 to US$2,150 range.
“Toward the end of the year, following the re-election of Donald Trump as U.S. President, lead prices came under pressure as the U.S. dollar strengthened,” said Solanes.
Despite its wide price swings, lead was down only 2.41 percent year-to-date as of December 18, 2024.
Lead's price performance in 2024.
Chart via TradingEconomics.
“On the supply front, lead output growth slowed, constrained by high energy prices and supply chain problems in the automobile industry,” according to Solanes.
In the first 10 months of 2024, ILZSG figures show that global supply of lead exceeded demand by 21,000 metric tons. That’s compared to 41,000 metric tons in the previous year.
Worldwide lead mine production rose by 1.5 percent. Lead metal production decreased by 1.7 percent over the same period in 2023, which according to the ILZSG was due to “lower output in China and Canada, where a scheduled maintenance at Teck Resources’ (TSX:TECK.A,TSX:TECK.B,NYSE:TECK) Trail operations impacted production during the second quarter.” Meanwhile, consumption of the metal decreased by 1.6 percent.
What factors will move the lead market in 2025?
Heading into 2025, what supply and demand factors are expected to drive the price of lead?
The ILZSG forecasts that global lead mine supply will rise by 2.1 percent in 2025, reaching 4.64 million metric tons; that would be comparedd to 1.7 percent growth in 2024. The organization sees increased lead supply coming out of the three top lead-producing countries: China, Australia and Mexico.
Looking over at global refined lead supply, the ILZSG sees a 2.4 percent increase to 13.51 million metric tons in 2024; that's compared to a 0.2 percent decrease to 13.2 million metric tons in 2024.
In terms of demand for refined lead metal in China, the ILZSG is forecasting a growth rate of 0.5 percent in 2025 after projected demand growth of 0.9 percent in 2024. Demand is expected to recover in Europe and Mexico in 2025, and continue to rise in India and Vietnam. On a global scale, demand for refined lead metal is forecast to increase by 0.2 percent, to 13.13 million metric tons, in 2024, and by 1.9 percent, to 13.39 million metric tons, in 2025.
The ILZSG “anticipates that global supply of refined lead metal will exceed demand by 63,000 tonnes in 2024. In 2025, a much larger surplus of 121,000 tonnes is expected.”
What other key trends and catalysts should investors look out for in the lead market in 2025?
“The strength of China’s industrial sector and stimulus policies in the country, along with the pace of global monetary policy, are key factors to monitor,” advised Solanes.
As the largest consumer of lead, China’s economic health is also a major factor for consideration. The World Bank is forecasting 4.8 percent annual growth in 2024 for China, the world’s second largest economy, and calling for slower growth of 4.3 percent in 2025. The weakest segment of China’s market has been its property sector.
Outside of the battery market, lead has several important applications in housing and infrastructure.
“Another relevant topic to track is trade policy under Trump, with the prospect of a Sino-American trade war posing headwinds to prices,” added Solanes.
As reported by Fastmarkets during LME Week, a conference held each fall in London, StoneX Senior Metals Analyst Natalie Scott Gray shared her insight into what’s ahead for the lead market in 2025.
Importantly, the firm is expecting increased mine production as well as demand.
Scott Gray said that as copper, zinc and silver mining activity increases for the year, so will lead output as it's often a by-product metal. Her firm is also forecasting that lead demand will increase by 2.2 percent in 2025 as falling interest rates improve demand for batteries. This would likely bring a slight uptick in the lead price for the year.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lead Price Forecast: Top Trends That Will Affect Lead in 2024
On the supply side, lead is typically mined as a by-product of zinc, silver and to a lesser extent, copper. Demand changes and mining disruptions for these metals can play an outsized role in shaping lead sector dynamics.
As 2024 approaches, the Investing News Network (INN) is looking back at the main trends in the lead space in 2023 and what’s ahead for prices, supply and demand in the new year. Read on to learn what experts see coming.
How did lead perform in 2023?
Although they started off the year above the US$2,300 per metric ton level, lead prices quickly shed nearly 11 percent in the first three weeks of 2023 on concerns about weak demand.
Lead touched US$2,300 again in June, which analysts at Wood Mackenzie attributed to the suspension of operations at Newmont’s (TSX:NGT,NYSE:NEM) Peñasquito polymetallic mine in an “already tight” lead concentrate market.
“Strong OE automotive figures were also supportive on the demand side of lead's market fundamentals. However, the wider macroeconomic picture has been less robust recently, particularly in China,” the firm states in a June report.
Although lead prices would test the US$2,300 level again in September, Peñasquito’s return to production in October pushed the metal back down to around US$2,064. Confirmation of the mine's restart coincided with lead prices weakening notably in relation to other London Metal Exchange (LME) prices, as per Wood Mackenzie.
Lead prices hit their lowest point of the year on December 7, coming in at US$1,973.
Lead's price performance in 2023.
Chart via TradingEconomics.
A December report from the International Lead and Zinc Study Group (ILZSG) shows that in the first 10 months of 2023, global supply of lead exceeded demand by 41,000 metric tons.
Worldwide lead mine production rose by 1.5 percent and lead metal production was up by 2.8 percent over the same period in 2022, while consumption of the metal rose by a mere 0.3 percent.
The January launch of production at Galena Mining’s (ASX:G1A) Abra lead-silver mine in Australia, notes the ILZSG, contributed to the rise in mine production. The first major lead-only mine to be brought into production since 2005 has an annual lead production capacity of 95,000 metric tons.
China, which is both the world’s largest producer and consumer of the metal, increased its imports of lead concentrate by 22 percent compared to the first 10 months of 2022, while its exports of refined lead metal grew by more than 64 percent. In the ILZSG’s October 2023 forecast, the group attributes the growth in Chinese demand for lead to a 13.4 percent increase in lead-acid battery output over the first seven months of 2023.
What factors will move the lead market in 2024?
Heading into 2024, what supply and demand factors are expected to drive prices for lead?
"On the supply side, prospects of mine expansions and the potential restart of operations in European smelters will be key factors to watch,” Adrià Solanes, associate economist at FocusEconomics, told INN via email.
The ILZSG forecasts that global lead mine supply will rise by 2.9 percent in 2024 to 4.71 million metric tons, compared to 3.3 percent growth in 2023. Increased lead supply is seen coming out of Australia, the second largest lead-producing country, as well as other top producers such as India and Russia.
Market participants will also be keeping an eye on Peru’s federal elections in April. The country is the world’s fifth largest lead producer, and has a strong project pipeline. However, political instability and ongoing protests against mining projects could have a negative impact on mining investment in the country, states research firm BMI.
New sources of mine supply for lead in 2024 include Adriatic Metals’ (ASX:ADT,LSE:ADT1,OTCQX:ADMLF) Vares silver mine in Bosnia and Herzegovina, which is expected to begin production in January, barring any further delays.
Looking over at global refined lead supply, the ILZSG sees a 2.3 percent increase to 13.14 million metric tons in 2024; that's compared to a 2.7 percent increase on the books for 2023 and a 1.7 percent decline in 2022. The restart of Trafigura’s Stolberg smelter in Germany is expected to contribute to increased refined lead supply for 2024.
As a by-product metal, global supply of lead is also tightly tied to zinc mine production. A too-low price environment for zinc can prompt miners to curtail operations as the cost of production eats into their margins. In 2023, zinc has been the second worst-performing metal on the LME after nickel due to a massive supply overhang amid stilted demand.
With economic uncertainty still weighing on global markets, that supply imbalance is expected to remain. “Regarding the global market balance, the Group anticipates that global supply of refined zinc metal will exceed demand in both 2023 and 2024 with the extent of the surpluses forecast at 248,000 tonnes and 367,000 tonnes respectively,” states the ILZSG.
What about global demand for lead? “Demand-wise, much will depend on the strength of the automotive sector, the health of China’s industrial sector and the pace of monetary easing in western economies,” said Solanes.
Looking at the global automotive market, an S&P Global Mobility report shows a projected 8.9 percent rise in new light vehicle sales for 2023 over the previous year. However, in 2024 that figure is set to drop to only a 2.8 percent increase.
The rising cost of living in many countries due to growing inflation and higher interest rates will still be front and center heading into 2024, which will no doubt hamper consumer demand for vehicles.
"2024 is expected to be another year of cagey recovery, with the auto industry moving beyond clear supply-side risks, into a murkier macro-led demand environment," Colin Couchman, executive director of global light vehicle forecasting for S&P Global Mobility, states in the firm's report.
As the largest consumer of lead, China’s economic health is also a factor for consideration. The World Bank is forecasting 5.2 percent annual growth in 2023 for China, the world’s second largest economy, and calling for slower growth of 4.5 percent in 2024 and 4.3 percent in 2025. The weakest segment of China’s market has been its property sector, with investment down 9.4 percent in 2023. Lead has several important applications in housing and infrastructure.
However, demand for refined lead metal in China is forecast to grow by 2.4 percent in 2024 after projected demand growth of 1.9 percent in 2023, according to ILZSG data. That’s compared to a significant 2023 decline of 6.4 percent in the US; a recovery of 3.1 percent is forecast in the country for 2024.
On a global scale, demand for refined lead metal is set to increase by 2.2 percent in 2024 after a 1.1 percent increase in 2023. Demand for lead is also expected to rise in India, Japan and Korea.
Despite these increases in demand, the ILZSG “anticipates that global supply of refined lead metal will exceed demand by 35,000 tonnes in 2023. In 2024, a larger surplus of 52,000 tonnes is expected.”
What other key trends and catalysts should investors look out for in the lead market in 2024?
“Stimulus policies in China will be a key short-term catalyst of demand for the metal. Timely and substantial support to the industrial and property sector would boost lead prices,” Solanes explained.
In mid-2023, China’s National Development and Reform Commission announced economic stimulus measures to spur growth in the auto, property and consumer goods sectors. Market participants will be watching for any impact they may have for the lead sector, as well as additional measures that may be on the horizon in 2024.
Over the longer term, the transition away from fossil fuels to renewable energy sources presents an avenue of demand in the lead market. “The main underlying trend to monitor is the switch to green and electric energy, as lead-acid batteries are widely used to power both low-voltage and renewable energy systems,” added Solanes.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Galena Mining is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
