GALENA MINING LTD. ("Galena" or the "Company") (ASX: G1A) announces that mining of the underground decline has commenced at its Abra Base Metals Project ("Abra" or the "Project").
Managing Director, Tony James commented, "Taking the first cut in the portal to start the underground decline at Abra is very exciting. This keeps us on track for first commercial production of our high-value, high-grade lead-silver concentrate at the start of 2023. It is also the historical beginning of mining in the very prospective Edmund Sedimentary Basin. Special appreciation is given to Byrnecut and the Abra team on site for the extremely professional approach taken to achieve the official commencement of underground mining at Abra".
Figure 1 – Jumbo drilling and first cut taken in the Abra Decline
Byrnecut Australia Pty Ltd ("Byrnecut"), the mining contractor for Abra, commenced operations for the underground decline on Tuesday 5 October following the deployment of people and equipment to the mine site, and completion of final box-cut preparation works and services installation.
Primary decline works are expected to continue for approximately 14-months to gain access to the orebody and with their commencement on-time, the Abra Base Metals Project remains on-track for first commercial ore production at the start of 2023.
Read the full article here.
Galena Mining Limited (ASX:G1A, Galena) owns 60 percent of the Abra base metals mine located in the Gascoyne region of Western Australia - home to one of the largest lead and silver deposits in the world, set to produce the highest-grade, cleanest lead concentrate available globally. The company is capitalizing on its Tier 1 asset in a Tier 1 jurisdiction, strengthened by and leveraging partnerships with Japan's largest zinc and lead smelter, as well as with one of the top base metals trading firms in the world.
The company also owns 100 percent of the Jillawarra Project, which covers 76 kilometers of strike extension directly to the west of Abra. The Jillawarra Project contains several large-scale analogous exploration targets including the Woodlands Complex, Quartzite Well and Copper Chert areas.
Galena's major partnerships include Toho Zinc (TSE:5707), Japan's largest zinc and lead smelter, and IXM SA, one of the world's top three base metals trading firms. Toho provided AU$90 million project equity and has a long-term offtake agreement to purchase 40 percent of Abra's production; while IXM has entered into a 10-year take-or-pay offtake contract to purchase the remaining 60 percent.
The company's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
In November 2020, Galena put in place US$110 million in finalized debt facilities arranged by Taurus Funds Management. The facilities include a US$100-million project finance facility plus a US$10-million cost overrun facility.
The project finance facility consists of a 69-month term loan primarily to fund capital expenditures for the development of Abra. Key terms include:
The cost overrun facility is a loan to finance identified cost overruns on the project in capital expenditure and working capital. Fixed interest of 10 percent per annum applies to amounts drawn under the cost overrun facility.
The Taurus debt facilities have been fully drawn and are secured against Abra Project assets and over the shares that each of Galena and Toho own in Abra.
The Abra Mine is a 60:40 joint venture between Galena and Japanese lead producer Toho Zinc. It is a globally significant lead-silver project located in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra approximately 110 kilometers from the DeGrussa copper mine owned by Sandfire Resources (ASX:SFR).
Abra Mine Site Location
The Abra mine carries a total JORC mineral resource estimate published in July 2023 of 33.4 Mt at 7.1 percent lead and 17 g/t silver (5 percent Pb cut-off grade), which includes 0.3 Mt at 7.3 percent lead and 32 g/t silver in the measured category; 16.2 Mt at 7.3 percent lead and 19 g/t silver in the indicated category; and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
All permits for the Abra project have been obtained from the appropriate Western Australian regulatory bodies. The project is also subject to an existing land use and heritage agreement with the Jidi Jidi Aboriginal Corporation. The Abra property is well-serviced by public roads and highways, and all the necessary infrastructure has been developed to transport lead-sulphide concentrates to the Port of Geraldton, Abra's primary export port.
Abra Processing Plant
A final investment decision to complete the Abra Project was made in June 2021 and construction was completed in December 2022, on time and on budget. Several important milestones were achieved in the March 2023 quarter, including the commissioning of the processing plant, first ore fed into the plant and first concentrate produced in January 2023.
The processing plant achieved in-specification concentrate production from the commencement of concentrate production and during the 2023 calendar year, 967,622 tons of ore was processed and 61,800 tons of lead concentrate was produced.
The company is currently undertaking detailed technical work to develop an updated production plan for 2024 production targets and guidance.
Exploration and growth associated with the 100 percent Galena-owned Jillawarra Project covers a highly prospective elongated tenement package covering approximately 76 kilometers of continuous strike length and 508 square kilometers directly to the west of Abra.
The Jillawarra Project hosts many base metals prospects which have had limited shallow exploration work completed since the 1970s by various companies. The bulk of the exploration work was completed by Amoco, Geopeko, Apex Minerals and Abra Mining Limited. The work completed to date has identified several base metals, manganese and gold prospects, of which the Woodlands Complex, Quartzite Well, Manganese Range, Copper Chert, TP and 46-40 were subject to early-stage exploration. Most of the drilling completed within the Jillawarra Project investigated the first 100 to 200-meter depth which, based on recent knowledge of Abra, may not have reached the depths required.
The main prospective corridor within the Jillawarra Project lies within the margins of the Quartzite Well – Lyons River Fault zones which extend east-west along the entire tenement package. Also, the contact between the dolomitic sediments of Irregully Formation and the lower sedimentary unit, polymictic conglomerate, of the Kiangi Creek Formation represents an important marker for the occurrence of base metal mineralisation as seen at Abra.
The Woodlands Complex is an Australian scaled geophysical anomaly which represents a significant target area with the anomaly being 12 kilometers long and 10 kilometers wide. Limited work and technical evaluation have occurred at Woodlands which presents a great opportunity for Galena in the years to come. Ongoing geophysical and exploration drilling will occur concurrently with the development of Abra. The knowledge and understanding of Abra due to its development will provide a significant exploration advantage at Jillawarra.
Tony James is a mining engineer with over 30 years’ mine operating and project development experience predominantly in Western Australia. He also has previous experience at managing director level of three ASX-listed companies with two of those companies successfully guided through a merger and takeover process benefiting the shareholders. He has a strong mine operating background (examples being the Kanowna Belle gold mine and the Black Swan nickel mine) and a strong feasibility study / mine development background (examples being the Pillara zinc/lead mine and the Trident/Higginsville gold mine).
Adrian Byass has more than 25 years of experience in the mining industry both in listed and unlisted entities globally. He has served as non-executive and executive director of various listed and unlisted mining entities, which have successfully transitioned to production in bulk, precious and specialty metals around the world. He currently serves on the boards of ASX gold, base metals and lithium companies.
Neville Gardiner has over 30 years of experience advising boards on mergers and acquisitions,
equity and debt capital markets, transaction structuring, capital allocation and complex
commercial arrangements. His career achievements include senior executive leadership
roles in Deloitte, Torridon Partners, and at Bank of America Merrill Lynch, where he spent five years as the head of its Australian Natural Resources Team. He also spent nine years with Macquarie Bank, where he had responsibility for its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business. He has a very strong experience and knowledge base associated with the resources sector in Australia.
Stewart Howe has more than 40 years of experience in the global resource industry including 18 years in mining. He was chief development officer at Zinifex, one of the world’s largest miners and smelters of lead and zinc. He led the spin-off of Zinifex’s smelters to create Nyrstar NV, and restarted the development of the Dugald River mine.
Craig Barnes has over 25 years of experience in senior finance and financial management within the mining industry and previously the financial services industry. He has considerable experience in project financing, mergers and acquisitions, joint ventures, treasury and implementation of accounting controls and systems.
Before joining Galena, he held the position of CFO of Paladin Energy for more than five years and was part of the team that successfully completed the company's capital restructuring in 2018. Prior to that, he was the chief financial officer of DRDGOLD (NYSE and JSE:DRD) and its affiliated subsidiaries for more than seven years.
Aida Tabakovic has over 11 years of experience in the accounting profession, which includes financial accounting reporting, company secretarial services, ASX and ASIC compliance requirements. She has been involved in listing several junior exploration companies on the ASX and is currently company secretary for numerous ASX-listed companies
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.
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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.
MAG Silver Corp. (TSX NYSE American: MAG) ("MAG" or "MAG Silver") reports that at its Annual General and Special Meeting (the " AGSM ") held on June 17, 2024, MAG's shareholders (the " Shareholders ") approved by majority: to elect all eight directors standing for election, to re-appoint Deloitte LLP as auditors of the Company, and to support the Company's approach to executive compensation.
Detailed results of the total shares voted at the AGSM are set out below.
| Motions: | |||||
| Nominees | Total Votes Cast | Total Votes For | Total Votes Withheld | % For | % Withheld |
| Peter Barnes | 58,366,832 | 53,951,708 | 4,415,124 | 92.44% | 7.56% |
| Tim Baker | 58,366,831 | 57,998,473 | 368,358 | 99.37% | 0.63% |
| Jill Leversage | 58,366,832 | 57,131,430 | 1,235,402 | 97.88% | 2.12% |
| Selma Lussenburg | 58,366,832 | 57,534,813 | 832,019 | 98.57% | 1.43% |
| Susan Mathieu | 58,366,832 | 57,946,695 | 420,137 | 99.28% | 0.72% |
| Dale Peniuk | 58,366,831 | 57,532,399 | 834,432 | 98.57% | 1.43% |
| Tom Peregoodoff | 58,366,831 | 56,445,627 | 1,921,204 | 96.71% | 3.29% |
| George Paspalas | 58,366,832 | 57,991,551 | 375,281 | 99.36% | 0.64% |
| Total Votes Cast | Total Votes For | Total Votes Withheld | % For | % Withheld | |
| Appointment of Auditors | 68,454,799 | 62,106,302 | 6,348,497 | 90.73% | 9.27% |
| Total Votes Cast | Total Votes For | Total Votes Against | % For | % Against | |
| Say on Pay | 58,366,830 | 56,655,960 | 1,710,870 | 97.07% | 2.93% |
"On behalf of the Board, management and staff, I would like to thank outgoing director, Dan MacInnis, for his 19 years of commitment and service to the Company ," said George Paspalas, President and CEO of MAG. "Dan's contribution to MAG, both as former CEO and more recently as a director, has been immense, and he will be missed. We wish him all the best in his retirement."
About MAG Silver Corp. ( www.magsilver.com )
MAG Silver Corp. is a growth-oriented Canadian exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tonnes per day Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralised material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn-in Deer Trail Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.
For further information on behalf of MAG Silver Corp.
Contact Michael J. Curlook , Vice President, Investor Relations and Communications
| Phone: | (604) 630-1399 | Website: | www.magsilver.com |
| Toll Free: | (866) 630-1399 | Email: | info@magsilver.com |
Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, " forward-looking statements "). All statements in this release, other than statements of historical facts are forward looking statements, including statements that relate to the Company's approach to executive compensation. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements identified herein include, but are not limited to, a subsequent change in the Company's approach to executive compensation from that approach approved by Shareholders, changes in applicable laws, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including those risks disclosed in MAG Silver's filings with the Securities Exchange Commission (the " SEC ") and Canadian securities regulators. All forward-looking statements contained herein are made as at the date hereof and MAG Silver undertakes no obligation to update the forward-looking statements contained herein. There is no certainty that any forward-looking statement will come to pass, and investors should not place undue reliance upon forward-looking statements.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov .
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