Galena Mining Limited floated on the ASX in September 2017 following a very successful IPO, after the acquisition of Abra Mining Pty Ltd.
The Company owns 60% of the Abra Base Metals Mine (Abra or the Project) located in the Edmund Sedimentary basin, in the Gascoyne Region of Western Australia. The mine is located 170km southwest of Newman and 220km north of Meekatharra. The Abra deposit was originally discovered in 1981 by Geopeko and remains one of the biggest undeveloped lead deposits in the World.
The Company owns 100% of the Jillawarra Project which covers 76km 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.
At Abra, the Company has completed four separate diamond drilling programs since 2017, underpinning four updated Mineral Resource Estimates (MRE). The most recent MRE was completed in July 2023.
In September 2018, the Company completed the Abra Pre-Feasibility Study (PFS) delivering a long-life high value, high grade lead-silver mine.
Abra is 100% owned by Abra Mining Pty Ltd (AMPL or the Abra JV) which is a 60:40 joint venture that was formed in April 2019 following a $90 million equity investment by Toho Zinc of Japan for their 40% ownership of the Project. Toho will also purchase 40% of Abra’s lead concentrate production for an initial period of 10-years from the commencement of concentrate production.
In July 2019, an outstanding Feasibility Study (FS) for development of Abra was completed. The FS delivered an underground mine and processing facility with a 16-year mine life producing a high-value, high-grade lead-silver concentrate of approximately 95kt of lead and 805koz of silver per year after ramp-up. Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.
In October 2019, Galena announced a 10-year offtake agreement with IXM for Galena’s 60% portion of Abra’s lead concentrate production.
In November 2020, the Company executed a US$110 million debt facility agreement with Taurus and after an additional 25km of drilling and an updated MRE was completed, the Final Investment Decision (FID) for Abra was made in June 2021.
Early mine construction work in 2020 and the first half of 2021 enabled the mine build to be 17% complete by FID. In February 2021, the first hole was drilled into the Copper-Gold mineralisation below the Abra deposit returning 26.9m at 1.4% Copper.
Abra site access and decline development commenced in October 2021. The mine and associated infrastructure was built in 2022 and the first lead-silver concentrate was shipped in March 2023.
Abra accommodation camp and mine construction site in the background (photo: July 2022).