Re-Release: Abra Initial Production Guidance

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) advises that the announcement titled “Abra Initial Production Guidance” dated 21 July 2022 has been re- released to include additional information required by the ASX Listing Rules relating to the initial production guidance and other information contained therein.

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.

OVERVIEW OF KEY UPDATED MINE PLAN OUTCOMES

Abra is a globally significant lead-silver deposit, located in the Gascoyne region of Western Australia. The mine is under full construction and has reached 75% construction completion and will commence first concentrate production in March quarter CY2023. The Updated Mine Plan confirms the strong projected economic returns for the development of the Mine as a combined underground mine and conventional flotation concentrator to produce a high-value, high-grade lead-silver concentrate.

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.