THE BOURSE WHISPERER: Galena Mining (ASX: G1A) has commenced a definitive/bankable feasibility study (DFS) for the company’s wholly-owned Abra base metals project, located in Western Australia.
Galena Mining announced it has retained Australian engineering consulting and contracting company, GR Engineering Services Limited (ASX: GNG) to undertake key portions of the DFS related to plant design, capital cost and operating cost estimation, process and non-process infrastructure evaluation.
“The recently published pre-feasibility study for Abra demonstrated outstanding investment returns and we’re keen to see it engineered to the highest standards so we’re in a strong position to commence construction next year,” Galena Mining managing director Alex Molyneux said in the company’s announcement to the Australian Securities Exchange.
“In this regard we’re very pleased to have GR Engineering onboard in a key role.”
In addition to the appointment of GR Engineering, Galena also recently appointed a full-time metallurgy and study manager to lead the internal DFS work under the guidance of COO, Troy Flannery.
Galena explained that the DFS and various related appointments follow completion of a pre-feasibility study (PFS) for Abra that predicted a 1.2 million tonne per annum throughput underground mine and conventional floatation concentrator for the project to produce a high-grade, high-value lead silver concentrate containing 91,000 tonnes per annum of lead and 760,000 ounces per annum of silver over a 14-year mine life.
Key work items in the PFS were already completed to DFS-level including: geotechnical drilling; metallurgical testwork; environmental studies and reports; water supply analysis; hydrogeology; underground mine designs; and infrastructure design.
The DFS is targeted to be complete in mid-2019, while in the meantime, Galena expects to progress value-adding milestone workstreams in parallel.
Galena is maintaining its targeted commencement of construction at Abra in 2019, initial production in 2021 and the first full-year of steady-state commercial production in 2022.