Galena Mining Ltd (ASX:G1A, FRA:GM6) completed around 17% of Abra Base Metals Project construction during the 2021 financial year, including mine box-cut ground support works to the portal excavation stage and the installation of 200 rooms and other ancillary buildings to complete the 280-room Abra mine village.
In its annual report for the period ending June 30, the base metals developer highlighted its achievements for FY2021 as well as upcoming activities at its 60%-owned Abra Base Metals Project in Western Australia’s Gascoyne region.
The remaining 40% is owned by Toho in line with an investment agreement with Toho Zinc Co Ltd.
Focus on Abra pre-development works
Since listing on the ASX on September 7, 2017, the company has continued its focus on exploration and pre-development works at the Abra Project, together with early-stage exploration at other mineral prospects within the group’s portfolio such as its strategic package of exploration licences over the Jillawarra sub-basin.
As of June 30, the company had a cash balance of $96.19 million and a net asset position of $132,949,386 compared to $56,092,303 in 2020.
Mine village construction
Completed and commissioned by McNally Group Pty Ltd, the mine village features new accommodation units and other central facilities such as dry and wet mass buildings, village administration buildings, sports and gym facilities, laundries, and a medical centre.
Other Abra Project development activities undertaken during the 2021 financial year included completing detailed design and engineering for the tailings storage facility (TSF) and aerodrome.
Contracts also were finalised for earthworks activities for the TSF, aerodrome and processing facility.
Abra drilling and updated resource
In April, Galena achieved key objectives from the 2020 Abra Drilling Program with a subsequent updated JORC 2012 resource estimate helping to increase confidence in the Abra Project.
The April 2021 resource was independently prepared by Optiro Pty Ltd based on assays from the completion of the 2020 drilling program, which consisted of 57 holes for a total of 24,834 cumulative metres of diamond core drilling.
The resource estimate now totals 34.5 million tonnes at 7.2% lead and 16% silver, comprising 16.9 million tonnes at 7.4% lead and 17% silver in the indicated resource category and 17.5 million tonnes at 7% lead and 15% silver in the inferred category.
Near-project exploration
A full review of the prospects around Abra and other exploration targets was also concluded during FY2021 and this defined five high-priority targets that have the potential to host similar base and precious metals mineralisation as Abra.
Amongst the work completed during the year, a downhole geophysical survey was concluded for the deepest drill hole ever drilled at Abra (AB195) to identify any potential conductive source associated with massive sulphide mineralisation, particularly in the interpreted copper-gold zone.
The downhole geophysical survey included electromagnetic, magnetic susceptibility, magnetic and conductivity surveys.
A significant magnetic conductive source was identified that is still being interpreted by the company’s consultant geophysicists.
Events after reporting period
The mineral explorer received confirmation that Abra Mining Pty Ltd, the joint venture company for the Abra Base Metals Project confirmed the placement for two key long lead items for the Abra processing plant.
This includes the ball mill and the concentrate filter, which have a combined order value of around $9 million.
Galena highlighted the ongoing impact of COVID-19. While it has not significantly impacted the consolidated entity up to June 30 2021, G1A said it was not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
No matter or circumstance has arisen since the end of the audited period which significantly affected or may significantly affect the operations of the group, the results of those operations, or the state of affairs of the group in future financial periods.