Galena Mining’s Abra project in the Gascoyne, Western Australia is predicted to become a top six global lead operation once it reaches full production in the first quarter of 2021.
The site compares economically to Sandfire Resources’ nearby Degrussa copper mine in terms of low capital expenditure (capex) and high profitability.
Pre-production spend of $153 million is expected to be paid back within 18 months, according to Galena. Just over half of the project’s mineable material is in the indicated category, and all material within the payback period will be in the indicated category as well.
Galena plans to complete construction of a 1Mt/y processing plant for production of high-grade lead and silver, which will be transported to Geraldton Port for international shipping, following this period.
The company funded 12-18 months of work through a $9 million capital raising in April that placed the its pro-forma cash position at $11 million. It issued around 58 million shares at 15.5 cents per share (its current share price is 17 cents).
Galena reported JORC 2018-compliant indicated and inferred resources at Abra of 36.6Mt at 7.3 per cent lead and 18g/t of silver. This includes an indicated 11.2Mt at 5.3Mt at 10.6 per cent lead and 28g/t silver using a 7.5 per cent cut off.