Galena Mining Ltd (ASX:G1A) has kicked off its underground mining operation at the Abra Base Metals Project in WA’s Gascoyne region.
Byrnecut Australia Pty Ltd, Abra’s mining contractor, commenced work at the lead-silver concentrate asset on Tuesday.
A jumbo drill rig began drilling into the Abra decline and taking the first cut into the underground portal.
It comes after people and equipment mobilised to the Abra site as final preparation activities were completed.
Primary decline works are expected to continue for roughly 14 months.
After that, Galena can gain access to the orebody and move a step closer to its ultimate goal: commercial production.
The jumbo drill rig on-site at Abra.
On track for commercial production in 2023
Galena managing director Tony James said: “Taking the first cut in the portal to start the underground decline at Abra is very exciting.
“This keeps us on track for first commercial production of our high-value, high-grade lead-silver concentrate at the start of 2023.
“It is also the historical beginning of mining in the very prospective Edmund Sedimentary Basin.
“Special appreciation is given to Byrnecut and the Abra team on site for the extremely professional approach taken to achieve the official commencement of underground mining at Abra.”
The Abra Base Metals Project
Galena owns 60% of the Abra asset, which sits between the mining towns of Newman and Meekatharra and just 110 kilometres from Sandfire Resources’ DeGrussa Project.
In 2019, the ASX-lister completed a definitive and bankable feasibility study, which considered developing a mine and processing facility with a 16-year mine life.
The hub is set up to produce high-value, high-grade lead-silver concentrate, containing roughly 95,000 tonnes of lead and 805,000 ounces of silver per year, after ramp-up.
Based on a A$170 million pre-development capex forecast, the feasibility study modelled a pre-tax net present value of A$553 million and a 39% internal rate of return.
The project’s mineral resource estimate is outlined below:
