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General mining & base metals

Galena Mining over the halfway mark in Abra Base Metals Mine construction

Galena has expended $97.8 million in its $231.4 million CAPEX budget to date.

Galena Mining Ltd (ASX:G1A) has constructed more than half of its Abra Base Metals Mine in WA’s Gascoyne region.

Over 58% of the work is done, and the resources stock has started erecting steel for the project’s fine ore bin and completed the site’s main admin building.

Finance-wise, Galena has expended $97.8 million in its $231.4 million CAPEX budget to date.

Grade control drilling slated for May

Speaking to the progress, Galena managing director Tony James said: “Consistent progress has been made at Abra during March with the underground decline reaching the 1,395-metre relative level, which is now only 82 metres above the orebody.

“Underground diamond drilling contract has been awarded to Swick Mining Services with planned commencement of grade control drilling in May.

“At the processing plant, 1,141 cub metres (or 46%) of concrete has been poured project to date on track to reach overall design volume of 2,500 cubic metres.

“The construction of the fine ore bin has commenced as steel fabrication continues in Perth with initial steelwork arriving on site for installation."

One step closer to production

Overall, Galena said its project is progressing in line with its critical mining and processing infrastructure schedule.

As outlined above, the processing plant EPC is now 61% complete by project spend.

In terms of work commitments, the processing plant infrastructure was slightly ahead of the most recent planned work schedule by the end of March.

In bulk earthworks, the tailings storage facility (TSF) work stopped while a technical review was completed on the proposed TSF, investigating the material suitability and availability for dam wall construction.

That work, along with the revised design work, was completed in March.

In the meantime, civil contractor pricing and availability is currently being evaluated before work on the TSF restarts.

Galena’s final works package — associated with any remaining non-processing infrastructure that’s not production critical — has been finalised and that work has begun.

This includes the remaining buildings and the drill-core processing and storage facility. Owners' costs and contingencies remain under budget.

Going underground

Galena’s underground mine development has reached the 1,395-metre relative level, which is 155 metres below the surface and 82 metres above the orebody.

The decline is currently heading in a southerly direction and is approaching the location of the first underground drilling platforms.

Down the line, these platforms will help Galena begin grade control drilling in the first production levels of the mine.

When this work kicks off, Galena may be able to complete further resource definition and exploration drilling.

Raise drilling is scheduled to resume in late April and the primary exhaust fan is scheduled to be installed in early May.

Securing infrastructure

Galena has been advised of three revised delivery times for overseas equipment for the Abra processing plant.

So far, work on the secondary and tertiary cone crushers has been complete, and these items have started shipping, targeting arrival at the end of May.

The primary jaw crusher has arrived on-site, while Galena now expects’ the plant’s thickener to arrive sooner than expected in early May.

Meanwhile, Abra’s four grinding mill shipments remain on track. Shipment one, comprising the mill sole plates, has arrived on site, and the lubrication system in shipment two is on its way.

The regrind mill shipping date has been confirmed as arriving in early September. None of these delivery changes are expected to cause any overall construction schedule delays.

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