Galena Mining Ltd (ASX:G1A, FRA:GM6) welcomes Abra Base Metals Project joint venture company Abra Mining Pty Ltd (AMPL) finalising major contracts to progress the development of the Western Australian lead-silver project.
AMPL has awarded the underground mining contract to Byrnecut Australia Pty Ltd with mobilisation planned for the second half of this month.
In addition, the plant construction contract with GR Engineering Services Ltd (ASX:GNG) (GRES) is in full implementation, with key long-lead items ordered, FEED completed and the detailed engineering phase reaching 15% completion.
Furthermore, Red Dust Holdings (RDH) has begun site bulk earthworks for the new aerodrome, tailings storage facility (TSF) and process plant infrastructure pads at Abra.
“A major milestone”
Galena managing director Tony James said: “A major milestone has been achieved at Abra with the finalisation of the underground mining contract with Byrnecut and the implementation of the process plant EPC with GR Engineering Services.
“Both companies have been very strong supporters of the project over a long period of time and it's very rewarding for everyone to see the work starting on the ground.
“The Byrnecut mining contract is for four years, with the remainder of this year and the majority of next year focused on gaining access to the orebody, 230 metres below surface.
“During this time the mine is effectively a ‘single heading’ decline and the manning requirements for that period are far lower than when the mine reaches commercial ore production in 2023.
“The actual mining work is expected to commence in the coming weeks. Equipment and labour have been sourced and are ready for mobilisation in the second half of September.
Underground mining contract
Byrnecut has been working closely with AMPL since the original tender in early 2020.
The equipment was ordered last year and manning/resources have been a part of the Byrnecut budget and planning forecasts since 2020.
The first 15-months of the contract is focused on establishing the primary decline down to the orebody in time for commissioning of Abra’s processing plant in early 2023.
The new mining equipment has arrived in Perth and is in pre-delivery preparation for mobilisation to the site with infrastructure including the temporary underground power station being installed.
Byrnecut Underground Mining Equipment being prepared for mobilisation to Abra.
Plant construction contract
GRES was awarded the Abra processing plant engineering, procurement and construction (EPC) contract in February 2020 under a guaranteed maximum price (GMP) arrangement
From an engineering, manning and resourcing perspective, the timing of the Abra project fits in well with the other project work GRES has been doing in 2021.
GRES has completed or is currently working on six separate projects with an average workforce of more than 400 employees.
The expected completion of the Deflector, Wiluna and Warrawoona projects will enable the Abra Project to be suitably resourced for engineering and construction.
Site bulk earthworks
Whilst RDH’s work continues on the new aerodrome, the existing airstrip at Abra remains fully operational to facilitate access to site for personnel.
The site bulk earthworks are scheduled to be completed in around three months.
RDH civil works associated with Abra airstrip construction.
“Progressing quickly”
“The plant EPC contract awarded to GR Engineering Services has commenced on several key areas including the ordering of key long-lead items,” James said.
“From an engineering, equipment, and manning perspective the timing of the Abra plant construction is ideal with the pending completion of three other projects GR Engineering Services have been working on in 2021.
“Red Dust Holdings is doing the bulk earthworks associated with the aerodrome, TSF and plant site and this work has already commenced and is progressing quickly with the expectation it will be completed by December 2021.”
Management changes
Following on from his appointment as Galena managing director in June, James has now also been appointed to the dual role of AMPL chief executive officer, replacing Troy Flannery who has resigned.
The company thanks Flannery for his service during a formative period for the project and the formation of the joint venture with Toho Zinc Co, Ltd.
In addition, AMPL has also appointed a new project manager in Mario Steyn.