PERTH (miningweekly.com) – A feasibility study into the Abra base metals project, in Western Australia, has estimated that it will produce some 95 000 t/y of lead and 805 000 oz of silver over a 16-year mine life.
ASX-listed Galena Mining on Monday told shareholders that the 1.2-million-tonne-a-year Abra project would require a capital spend of some A$170-million to develop, up from the A$154-million estimated in the 2018 prefeasibility study.
Abra is estimated to have a pretax net present value of A$553-million and a pretax internal rate of return of 39%, with a pay-back period of two years.
The feasibility study estimated C1 costs at $0.44/lb, placing Abra among the lowest for global primary lead producers.
Galena MD Alex Molyneux on Monday said that the completion of the study would allow Galena to move through the final phase of the project financing debt process, which was well under way.
Initial project development works on Abra are already advancing, he added, including the fabrication of the initial camp and the procurement of certain long-lead items.