Name of the Project
Abra base metals project.

Location
The project is located in the Gascoyne region of Western Australia.

Project Owner/s
Abra Mining, a subsidiary of Galena Mining 91.11% and 8.89% by Toho. Subject to a shareholders and an investment agreement, under which it is intended Toho will inject a further A$70-million into Abra Mining before construction of the project, resulting in Abra being owned 60% by Galena and 40% by Toho.

Project Description
The results of a feasibility study have confirmed low-risk and strong projected economic returns for the development of Abra as a combined underground mine and conventional processing facility (flotation concentrator) to produce a high-value, high-grade lead/silver concentrate.

Total proven and probable reserves are estimated at 10.3-million tonnes grading 8.8% lead and 24 g/t silver.

Total mineral resources are estimated at 37.4-million tonnes grading 7.5% lead and 18 g/t silver.

Abra’s life-of-mine (LoM) has increased from 14 years in the September 2018 prefeasibility study (PFS) to 16 years in the feasibility study.

Mill throughput has remained the same at 1.2-million tonnes a year; however, LoM lead production has increased from 1.1-million tonnes in the PFS to 1.24-million tonnes in the feasibility study, and silver production from 9.6-million ounces in the PFS to 10.6-million ounces in the feasibility study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at a 5% discount rate, of A$553-million – 25% higher than the September 2018 PFS – and an internal rate of return of 39%, with a payback from the first full year of commercial production of two years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$169.6-million in the feasibility study, from A$154-million in the PFS.

Planned Start/End Date
The project will take about 15 months to build.

Latest Developments
Abra has received all major permitting approvals required to start construction and is nearing completion of the project development drilling programme, including the drilling required to have finalised the design and positioning of the surface boxcut, mine portal and initial decline. Initial project development works are advancing, including the construction of an initial camp and procurement of certain long-lead time items.

Key Contracts and Suppliers
GR Engineering Services (feasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Galena Mining, tel +61 8 6166 3750 or email admin@galenamining.com.au.