Galena made final investment decision to develop Abra base metals project
(Kitco News) - Galena Mining (ASX: G1A) announced Tuesday that it has made the final investment decision to complete the full development of Abra base metals project in Australia, with first production of its high-value, high-grade lead-silver concentrate scheduled for the first quarter of 2023 calendar year.
77.28% owned by Galena, the Abra project is a globally significant lead-silver project located in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra, and approximately 110 kilometres from Sandfire's DeGrussa project.
Galena said it has completed an "outstanding" definitive / bankable feasibility study ("FS") for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up.
Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.
The company said that an underground decline development and on-site plant construction expected to commence in Q3 CY2021 and in Q4 CY2021, respectively. The project is 17% complete as at 31 May 2021.
In a press-release, the company pointed out that it is poised to join the ranks of high margin Australian base metals producers.