Galena Mining Ltd (ASX:G1A) has outlined initial production guidance for its 60%-owned Abra Base Metals Mine having achieved the construction milestone of 75% complete.
The company has confirmed that concentrate production remains on target for the first quarter of 2023, with mill throughput expected to be 0.8-1.0 million tonnes per annum resulting in ramp-up year lead production of 53,000-68,000 tonnes.
Following ramp-up, life of mine average annual production is expected to average 93,000 tonnes of lead and 553,000 ounces of silver, with lead ‘C1’ direct cash cost of US$0.50/pound.
Further to this, annual plant processing throughput and mine plan will be increased to 1.3 million tonnes in the current mine plan compared with 1.2 million in the company’s 2019 feasibility study.
Guidance based on recently updated mine plan
The guidance for the CY2023 ramp-up year and future life of mine averages are based on the most recently updated mine plan incorporating updated mine designs and the latest cost information.
“With first concentrate production on target for the March 2023 quarter, we provide this update on near-term and life of mine plan and targets,” Galena managing director Tony James said.
“During the construction period of the project, we have worked very closely with our partner Toho Zinc and our key service providers to reach the 75% build mark.
“For the remainder of 2022, we plan to safely complete the mine construction and commission Abra as a world-class lead-silver mine.”
The guidance is based on the additional drilling, mineral resource estimation, advancing construction at Abra and preparation for commissioning ahead of a planned safe and efficient start-up.
Grade control drilling started in June 2022 and ongoing drilling and evaluation over the next three months are expected to bring further opportunity for additional optimisation of the mine plan.
The forecast annual life of mine production now averages 93,000 tonnes of lead metal production and 553,000 ounces of silver.
An 8% increase in mine and mill production is offset by a 6% reduction in lead grade to produce slightly less metal in direct comparison to the 2019 feasibility study. A suitable ramp-up profile has been adopted for 2023 prior to reaching steady state production which is anticipated to occur in the December quarter of 2023.
\
Updated Abra key operating and financial metrics.
Abra mine update
The Abra mine is now 75% complete and moving along as planned.
Processing plant construction activities reached 79% complete with concrete civils passing 95% complete and structural steel passing 42% complete.
During June and early July, several key equipment items arrived on site and the only remaining items coming from overseas are the flotation cells and the regrind mill.
These items are in shipping with the flotation cells expected to arrive on August 12 and the regrind mill on September 1.